Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income before provision for income taxes

Income before provision for income taxes consists of the following:

	Year Ended June 30,
	2016		2015		2014
	(Dollars in Thousands)
Domestic	$	201,885	$	175,805	$	121,329
Foreign	8,754		3,666		7,204
Income before provision for income taxes	$	210,639	$	179,471	$	128,533

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,
	2016		2015			2014
	(Dollars in Thousands)
Federal—
Current	$	56,535	$	—		$	—
Deferred	7,496		55,895			32,996
State—
Current	1,866		2,176			528
Deferred	204		729			1,005
Foreign—
Current	4,554		3,382			7,785
Deferred	33		(1,118		)	436
	$	70,688	$	61,064		$	42,750

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,
	2016			2015			2014
	(Dollars in Thousands)
Federal tax provision at statutory rate	$	73,723		$	62,815		$	44,989
State income taxes	1,153			2,114			78
Subpart F and dividend income	3,581			2,799			6,667
Foreign taxes and rate differences	(663		)	(222		)	1,881
Stock-based compensation	1,359			763			631
Tax credits	(3,867		)	(3,562		)	(8,902		)
Tax contingencies	(581		)	(641		)	(261		)
Return to provision adjustments	658			384			150
Domestic Production Activity Deduction	(4,892		)	(3,600		)	(2,443		)
Valuation allowance	49			176			(16		)
Other	168			38			(24		)
Provision for income taxes	$	70,688		$	61,064		$	42,750

Deferred tax assets and liabilities

Deferred tax assets (liabilities) consist of the following at June 30, 2016 and 2015:

	Year Ended June 30,
	2016			2015
	(Dollars in Thousands)
Deferred tax assets:
Federal and state credits	$	1,270		$	2,144
Capital loss carryforwards	8,073			8,028
Foreign loss carryforwards	1,742			2,133
Deferred revenue	7,821			5,620
Other reserves and accruals	6,762			6,838
Intangible assets	1,616			2,478
Property, leasehold improvements, and other basis differences	1,853			2,136
Other temporary differences	870			2,916
	30,007			32,293
Deferred tax liabilities:
Deferred revenue	(1,276		)	(1,362		)
Intangible assets	(2,912		)	(1,065		)
Property, leasehold improvements, and other basis differences	(3,305		)	(2,812		)
Other temporary differences	(508		)	(645		)
	(8,001		)	(5,884		)
Valuation allowance	(10,119		)	(10,144		)
Net deferred tax assets	$	11,887		$	16,265

Reconciliation of reserve for uncertain tax positions

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

	Year Ended June 30,
	2016			2015			2014
	(Dollars in Thousands)
Uncertain tax positions, beginning of year	$	19,870		$	21,193		$	22,031
Gross increases—tax positions in prior period	67			238			112
Gross increases—tax positions in current period	5,474			—			—
Gross decreases—lapse of statutes	(1,772		)	(1,024		)	(823		)
Currency translation adjustment	(104		)	(537		)	(127		)
Uncertain tax positions, end of year	$	23,535		$	19,870		$	21,193