Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income before provision for income taxes

Income before provision for income taxes consists of the following:

	Year Ended June 30,
	2020		2019		2018
			As Adjusted		As Adjusted
	(Dollars in Thousands)
Domestic	$	274,066	$	297,002	$	218,452
Foreign	5,291		4,525		7,901
Income before provision for income taxes	$	279,357	$	301,527	$	226,353

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,
	2020			2019			2018
				As Adjusted			As Adjusted
	(Dollars in Thousands)
Federal—
Current	$	17,048		$	64,194		$	47,734
Deferred	28,101			(27,267		)	(107,588		)
State—
Current	1,367			3,246			1,471
Deferred	500			(1,033		)	939
Foreign—
Current	2,797			1,549			2,296
Deferred	(127		)	(524		)	267
	$	49,686		$	40,165		$	(54,881	)

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,
	2020			2019			2018
				As Adjusted			As Adjusted
	(Dollars in Thousands)
Federal tax provision at statutory rate	$	58,665		$	63,321		$	63,515
State income taxes	1,225			1,533			1,411
Remeasurement of deferred taxes	—			—			(110,986		)
Foreign-derived intangible income (FDII)	(13,581		)	(20,326		)	—
Global intangible low-taxed income (GILTI)	404			797			—
Effect of foreign operations	6,148			7,395			4,700
Impact of tax accounting method change	6,433			—			—
Foreign taxes and rate differences	404			514			(164		)
Stock-based compensation	33			(3,774		)	(2,951		)
Tax credits	(7,969		)	(9,677		)	(7,913		)
Uncertain tax positions	(3,236		)	1,055			(185		)
Domestic production activity deduction	—			—			(4,869		)
Valuation allowance	504			(550		)	2,326
Other, net	656			(123		)	235
Provision for income taxes	$	49,686		$	40,165		$	(54,881	)

Deferred tax assets and liabilities

Net deferred tax liabilities consist of the following at June 30, 2020 and 2019:

	Year Ended June 30,
	2020			2019
				As Adjusted
	(Dollars in Thousands)
Deferred tax assets:
State and foreign credits	$	4,922		$	4,055
Net operating loss carryforwards	1,200			906
Deferred revenue	4,596			5,252
Other reserves and accruals	7,465			6,082
Intangible assets	982			1,020
Property, leasehold improvements, and other basis differences	5,514			1,433
Other temporary differences	925			453
	25,604			19,201
Deferred tax liabilities:
Contract assets and costs	(158,538		)	(147,619		)
Deferred revenue	(27,066		)	(8,610		)
Intangible assets	(6,815		)	(5,635		)
Property, leasehold improvements, and other basis differences	(5,223		)	(1,146		)
	(197,642		)	(163,010		)
Valuation allowance	(6,205		)	(4,866		)
Net deferred tax liabilities	$	(178,243	)	$	(148,675	)

Reconciliation of reserve for uncertain tax positions

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

	Year Ended June 30,
	2020			2019			2018
	(Dollars in Thousands)
Uncertain tax positions, beginning of year	$	5,380		$	3,931		$	3,921
Gross increases (decreases) —tax positions in prior period	(2,216		)	407			544
Gross increases—tax positions in current period	—			1,789			—
Gross decreases—lapse of statutes	(1,032		)	(740		)	(637		)
Currency translation adjustment	(26		)	(7		)	103
Uncertain tax positions, end of year	$	2,106		$	5,380		$	3,931