INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Summary of Components of Income Before Taxes and Equity in Earnings of Equity-Method Investments

The components of income (loss) from continuing operations before income taxes and equity in net loss (income) of equity-method investees were as follows:


	Fiscal Year Ended June 30,
	2020		2019		2018
Domestic	$	(29,339)	$	(120,969)	$	(3,379)
Foreign	63,167		64,965		75,813
Total	$	33,828	$	(56,004)	$	72,434

Summary of the Provision for Income Taxes

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


	Fiscal Year Ended June 30,
	2020		2019		2018
Current:
Federal	$	(44,595)	$	3,639	$	(312)
State and local	619		760		1,383
Foreign	14,021		16,075		17,683
	(29,955)		20,474		18,754
Deferred:
Federal	33,007		(21,538)		(22,612)
State and local	3,414		1,188		1,973
Foreign	(261)		(3,356)		(86)
	36,160		(23,706)		(20,725)
Total	$	6,205	$	(3,232)	$	(1,971)

Reconciliation of Expected Income Taxes to Actual

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


	Fiscal Year Ended June 30,
	2020		%		2019		%		2018		%
Expected United States federal income tax at statutory rate	$	7,104	21.0	%	$	(11,761)	21.0	%	$	20,354	28.1	%
State income taxes, net of federal (benefit) provision	(668)		(1.9)	%	(8,922)		15.9	%	2,774		3.8	%

Foreign income at different rates	382		1.1	%	763		(1.4)	%	(3,825)		(5.3)	%
Impairment of goodwill and intangibles	—		—	%	—		—	%	1,816		2.5	%
Change in valuation allowance	4,499		13.3	%	8,938		(16.0)	%	119		0.2	%

Change in reserves for uncertain tax positions	7,925		23.4	%	841		(1.5)	%	(3,859)		(5.3)	%
Tax Act’s transition tax (a)	—		—	%	6,834		(12.2)	%	7,054		9.7	%
Tax Act’s impact of deferred taxes (b)	—		—	%	—		—	%	(25,006)		(34.5)	%
U.S. tax (benefit) on foreign earnings	7,449		22.0	%	3,872		(6.9)	%	—		—	%

CARES Act	(25,668)		(75.9)	%	—		—	%	—		—	%
Other	5,182		15.3	%	(3,797)		6.9	%	(1,398)		(1.9)	%
Provision (benefit) for income taxes	$	6,205	18.3	%	$	(3,232)	5.8	%	$	(1,971)	(2.7)	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:


	June 30, 2020		June 30, 2019
Noncurrent deferred tax assets (liabilities):
Basis difference on inventory	$	6,724	$	9,128
Reserves not currently deductible	21,173		23,518
Basis difference on intangible assets	(76,746)		(78,638)
Basis difference on property and equipment	(2,627)		(3,195)
Other comprehensive income	1,737		502
Net operating loss and tax credit carryforwards	34,393		73,500
Stock-based compensation	1,417		827
Unremitted earnings of foreign subsidiaries	(1,212)		—
Lease liability	14,096		—
Lease ROU assets	(12,807)		—
Other	4,006		3,995
Valuation allowances	(41,941)		(34,912)
Noncurrent deferred tax liabilities, net⁽¹⁾	$	(51,787)	$	(5,275)

(1) Includes $62 and $29,482 of non-current deferred tax assets included within Other Assets on the June 30, 2020 and 2019 Consolidated Balance Sheets.

Summary of Changes in Valuation Allowances

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


	Fiscal Year Ended June 30,
	2020		2019
Balance at beginning of year	$	34,912	$	20,831
Additions charged to income tax expense	7,391		17,773
Reductions credited to income tax expense	35		(3,231)
Currency translation adjustments	(397)		(461)
Balance at end of year	$	41,941	$	34,912

Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity

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


	Fiscal Year Ended June 30,
	2020		2019		2018
Balance at beginning of year	$	11,869	$	6,730	$	11,602
Additions based on tax positions related to the current year	636		248		118
Additions based on tax positions related to prior years	8,499		5,446		—
Reductions due to lapse in statute of limitations and settlements	(105)		(555)		(4,990)
Balance at end of year	$	20,899	$	11,869	$	6,730