v3.19.2
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Earnings from Continuing Operations before Income Taxes
Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable.
 
 
Years Ended June 30,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Earnings before income taxes:
 
 
 
 
 
 
U.S.
 
$
526.4

 
$
450.0

 
$
398.6

Foreign
 
80.8

 
111.1

 
89.5

Total
 
$
607.3

 
$
561.0

 
$
488.1
Components of Provision for Income Taxes The Provision for income taxes consists of the following components:
 
 
Years Ended June 30,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Current:
 
 
 
 
 
 
U.S. Domestic
 
$
88.8

 
$
89.4

 
$
138.2

Foreign
 
24.7

 
43.4

 
24.8

State
 
15.1

 
9.6

 
13.0

Total current
 
128.7

 
142.4

 
176.0

Deferred:
 
 
 
 
 
 
U.S. Domestic
 
2.2

 
(13.6
)
 
(7.9
)
Foreign
 
(2.8
)
 
4.9

 
(4.2
)
State
 
(2.9
)
 
(0.6
)
 
(2.5
)
Total deferred
 
(3.5
)
 
(9.3
)
 
(14.7
)
Total Provision for income taxes
 
$
125.2

 
$
133.1

 
$
161.4
Effective Income Tax Rate Reconciliation
 
 
Years Ended June 30,
 
 
2019
 
%
 
2018
 
%
 
2017
 
%
 
 
(in millions)
Provision for income taxes at U.S. statutory rate
 
$
127.5

 
21.0

 
$
157.4

 
28.1

 
$
170.8

 
35.0

Increase (decrease) in Provision for income taxes from:
 
 
 
 
 
 
 
 
 
 
 
 
State taxes, net of federal tax
 
12.0

 
2.0

 
9.4

 
1.7

 
6.7

 
1.4

Foreign tax differential
 
3.8

 
0.6

 
(2.4
)
 
(0.4
)
 
(6.9
)
 
(1.4
)
Valuation allowances
 
0.4

 
0.1

 
(5.0
)
 
(0.9
)
 
(0.6
)
 
(0.1
)
Non-taxable investment gain
 
—

 
—

 
—

 
—

 
(3.3
)
 
(0.7
)
Stock-based compensation - ETB
 
(19.3
)
 
(3.2
)
 
(40.9
)
 
(7.3
)
 
—

 
—

Tax Act Items
 
(0.5
)
 
(0.1
)
 
15.4

 
2.7

 
—

 
—

Other
 
1.3

 
0.2

 
(0.8
)
 
(0.1
)
 
(5.3
)
 
(1.1
)
Total Provision for income taxes
 
$
125.2

 
20.6

 
$
133.1

 
23.7

 
$
161.4

 
33.1
Components of Deferred Tax Assets and Liabilities Significant components of the Company’s deferred tax assets and liabilities at June 30, 2019 and 2018 were as follows:
 
 
June 30,
 
 
2019
 
2018
 
 
(in millions)
Classification:
 
 
 
 
Long-term deferred tax assets (included in Other non-current assets)
 
5.5

 
9.2

Long-term deferred tax liabilities
 
(86.7
)
 
(57.9
)
Net deferred tax liabilities
 
$
(81.3
)
 
$
(48.8
)
Components:
 
 
 
 
Deferred tax assets:
 
 
 
 
Accrued expenses not currently deductible
 
$
3.2

 
$
3.5

Depreciation
 
—

 
2.2

Compensation and benefits not currently deductible
 
57.6

 
51.7

Net operating and capital losses
 
11.1

 
12.1

Tax credits
 
7.5

 
5.2

Other
 
6.1

 
6.6

Total deferred tax assets
 
85.6

 
81.3

Less: Valuation allowances
 
(3.3
)
 
(3.8
)
Deferred tax assets, net
 
82.2

 
77.6

Deferred tax liabilities:
 
 
 
 
Goodwill and identifiable intangibles
 
100.9

 
93.4

Depreciation
 
10.1

 
—

Net deferred expenses
 
33.6

 
15.5

Unremitted earnings
 
12.2

 
11.1

Other
 
6.8

 
6.2

Deferred tax liabilities
 
163.5

 
126.3

Net deferred tax liabilities
 
$
(81.3
)
 
$
(48.8
)
Summary of Activity Related to Unrecognized Tax Benefits
The following table summarizes the activity related to the Company’s gross unrecognized tax positions:
 
 
Fiscal Year Ended
June 30,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Beginning balance
 
$
22.8

 
$
18.7

 
$
18.2

Gross increase related to prior period tax positions
 
17.3

 
3.5

 
0.6

Gross increase related to current period tax positions
 
2.8

 
3.0

 
2.7

Gross decrease related to prior period tax positions
 
(2.6
)
 
(2.4
)
 
(2.8
)
Ending balance
 
$
40.2

 
$
22.8

 
$
18.7