Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income before provision for income taxes

Income before provision for income taxes consists of the following:

	Year Ended June 30,
	2019		2018		2017
			As Adjusted		As Adjusted
	(Dollars in Thousands)
Domestic	$	298,665	$	229,745	$	228,890
Foreign	4,525		7,901		8,293
Income before provision for income taxes	$	303,190	$	237,646	$	237,183

Provision for income taxes

The provision for income taxes shown in the accompanying consolidated statements of operations is composed of the following:

	Year Ended June 30,
	2019			2018			2017
				As Adjusted			As Adjusted
	(Dollars in Thousands)
Federal—
Current	$	64,194		$	47,734		$	69,385
Deferred	(26,983		)	(108,867		)	(13,110		)
State—
Current	3,246			1,471			1,737
Deferred	(1,026		)	1,042			(771		)
Foreign—
Current	1,549			2,296			2,067
Deferred	(524		)	267			(1,511		)
	$	40,456		$	(56,057	)	$	57,797

Income tax reconciliation based on federal statutory rate

The provision for income taxes differs from that based on the federal statutory rate due to the following:

	Year Ended June 30,
	2019			2018			2017
				As Adjusted			As Adjusted
	(Dollars in Thousands)
Federal tax provision at statutory rate	$	63,670		$	66,683		$	83,014
State income taxes	1,540			1,503			1,167
Remeasurement of deferred taxes	—			(115,536		)	—
Foreign-derived intangible income (FDII)	(20,326		)	—			—
Global intangible low-taxed income (GILTI)	797			—			—
Effect of foreign operations	7,395			4,700			2,912
Foreign taxes and rate differences	514			(164		)	(206		)
Stock-based compensation	(3,774		)	(2,951		)	991
Tax credits	(9,677		)	(7,913		)	(6,614		)
Uncertain tax positions	1,055			(185		)	(19,645		)
Return to provision adjustments	(482		)	(488		)	464
Domestic production activity deduction	—			(4,869		)	(6,261		)
Valuation allowance	(550		)	2,326			1,522
Other	294			837			453
Provision for income taxes	$	40,456		$	(56,057	)	$	57,797

Deferred tax assets and liabilities

Net deferred tax liabilities consist of the following at June 30, 2019 and 2018:

	Year Ended June 30,
	2019			2018
				As Restated
	(Dollars in Thousands)
Deferred tax assets:
Federal and state credits	$	4,055		$	4,363
Capital loss carryforwards	—			4,856
Net operating loss carryforwards	906			1,452
Deferred revenue	5,252			3,163
Other reserves and accruals	6,082			6,550
Intangible assets	1,020			1,015
Property, leasehold improvements, and other basis differences	1,433			1,646
Other temporary differences	453			450
	19,201			23,495
Deferred tax liabilities:
Contract assets and costs	(156,346		)	(121,631		)
Deferred revenue	(8,610		)	(68,546		)
Intangible assets	(5,635		)	(5,231		)
Property, leasehold improvements, and other basis differences	(1,146		)	(1,340		)
	(171,737		)	(196,748		)
Valuation allowance	(4,866		)	(10,416		)
Net deferred tax liabilities	$	(157,402	)	$	(183,669	)

Reconciliation of reserve for uncertain tax positions

A reconciliation of the reserve for uncertain tax positions is as follows:

	Year Ended June 30,
	2019			2018			2017
				As Adjusted			As Adjusted
	(Dollars in Thousands)
Uncertain tax positions, beginning of year	$	3,931		$	3,921		$	23,535
Gross increases (decreases) —tax positions in prior period	407			544			(19,116		)
Gross increases—tax positions in current period	1,789			—			—
Gross decreases—lapse of statutes	(740		)	(637		)	(830		)
Currency translation adjustment	(7		)	103			332
Uncertain tax positions, end of year	$	5,380		$	3,931		$	3,921