Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

The components of income (loss) before income taxes and equity in earnings of equity-method investees were as follows:

The provision (benefit) for income taxes consisted of the following:

The reconciliation of the U.S. federal statutory rate to our effective rate on income before provision for income taxes was as follows:



	Fiscal Year Ended June 30,
	2018			%		2017			%		2016			%
Expected United States federal income tax at statutory rate	$	22,818		28.1	%	$	30,757		35.0	%	$	30,474		35.0	%
State income taxes, net of federal benefit	2,774			3.4	%	2,757			3.1	%	4,263			4.9	%
Domestic manufacturing deduction	—			—	%	(846		)	(1.0	)%	(505		)	(0.6	)%
Foreign income at different rates	(7,174		)	(8.8	)%	(6,539		)	(7.4	)%	(4,051		)	(4.7	)%
Impairment of goodwill and intangibles	1,816			2.2	%	—			—	%	23,172			26.6	%
Change in valuation allowance	119			0.1	%	(60		)	(0.1	)%	5,067			5.8	%
Corporate tax reorganization	—			—	%	—			—	%	(4,173		)	(4.8	)%
Unrealized foreign exchange losses	—			—	%	807			0.9	%	7,056			8.1	%
Change in reserves for uncertain tax positions	(3,859		)	(4.8	)%	(4,417		)	(5.0	)%	1,448			1.7	%
Tax Act’s transition tax (b)	7,054			8.7	%	—			—	%	—			—	%
Tax Act’s impact of deferred taxes (a)	(25,006		)	(30.8	)%	—			—	%	—			—	%
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate	—			—	%	(1,841		)	(2.1	)%	(4,942		)	(5.7	)%
Other	571			0.8	%	1,848			2.2	%	1,642			2.0	%
(Benefit) provision for income taxes	$	(887	)	(1.1	)%	$	22,466		25.6	%	$	59,451		68.3	%

Deferred tax assets and liabilities consisted of the following:



	June 30, 2018			June 30, 2017
Noncurrent deferred tax assets/(liabilities):
Basis difference on inventory	$	9,139		$	9,003
Reserves not currently deductible	11,060			23,111
Basis difference on intangible assets	(97,365		)	(124,756		)
Basis difference on property and equipment	(8,444		)	(12,086		)
Other comprehensive income	(133		)	(768		)
Net operating loss and tax credit carryforwards	12,414			19,049
Stock-based compensation	1,348			3,996
Other	41			(616		)
Valuation allowances	(14,969		)	(14,850		)
Noncurrent deferred tax liabilities, net (1)	$	(86,909	)	$	(97,917	)


(1)	The June 30, 2017 the Consolidated Balance Sheet includes $429 of non-current deferred tax assets in Other Assets.

The changes in valuation allowances against deferred income tax assets were as follows:



	Fiscal Year Ended June 30,
	2018			2017
Balance at beginning of year	$	14,850		$	15,310
Additions charged to income tax expense	1,251			1,862
Reductions credited to income tax expense	(1,345		)	(1,922		)
Currency translation adjustments	213			(400		)
Balance at end of year	$	14,969		$	14,850

Unrecognized tax benefits activity, including interest and penalties, is summarized below:



	Fiscal Year Ended June 30,
	2018			2017			2016
Balance at beginning of year	$	11,602		$	16,019		$	10,759
Additions based on tax positions related to the current year	118			217			4,276
Additions based on tax positions related to prior years	—			—			1,404
Reductions due to lapse in statute of limitations and settlements	(4,990		)	(4,634		)	(420		)
Balance at end of year	$	6,730		$	11,602		$	16,019