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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Components of Earnings (Losses) Before Income Taxes

The components of earnings (losses) before income taxes were as follows:

Year Ended June 30,		2019				2018				2017
($000)
U.S. loss		$	(34,241	)		$	(15,207	)		$	(6,944	)
Non-U.S. income			163,054				137,401				125,732
Earnings before income taxes		$	128,813			$	122,194			$	118,788

Components of Income Tax Expense

The components of income tax expense were as follows:

Year Ended June 30,		2019				2018				2017
($000)
Current:
Federal		$	1,755			$	699			$	2,133
State			472				401				253
Foreign			29,531				32,147				22,312
Total Current		$	31,758			$	33,247			$	24,698
Deferred:
Federal		$	(3,764	)		$	(3,064	)		$	(6,963	)
State			(2,010	)			1,615				(1,251	)
Foreign			(4,688	)			2,394				7,030
Total Deferred		$	(10,462	)		$	945			$	(1,184	)
Total Income Tax Expense		$	21,296			$	34,192			$	23,514

Schedule of Principal Items Comprising Deferred Income Taxes

Principal items comprising deferred income taxes were as follows:

June 30,		2019				2018
($000)
Deferred income tax assets
Inventory capitalization		$	5,687			$	5,267
Non-deductible accruals			1,251				1,125
Accrued employee benefits			9,797				7,614
Net-operating loss and credit carryforwards			54,192				48,738
Share-based compensation expense			7,192				7,925
Other			5,488				3,242
Valuation allowances			(16,558	)			(21,797	)
Total deferred income tax assets		$	67,049			$	52,114
Deferred income tax liabilities
Tax over book accumulated depreciation		$	(28,184	)		$	(24,174	)
Intangible assets			(28,202	)			(24,649	)
Tax on unremitted earnings			(11,662	)			(13,090	)
Convertible debt			(8,662	)			(11,376	)
Other			(5,728	)			(4,020	)
Total deferred income tax liabilities		$	(82,438	)		$	(77,309	)
Net deferred income taxes		$	(15,389	)		$	(25,195	)

Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense

The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows:

Year Ended June 30,		2019				%				2018				%				2017				%
($000)
Taxes at statutory rate			27,051				21			$	34,284				28			$	41,576				35
Increase (decrease) in taxes resulting from:
State income taxes-net of federal benefit			(1,212	)			(1	)			1,426				1				(641	)			-
Taxes on non U.S. earnings			(5,857	)			(5	)			(16,058	)			(13	)			(12,907	)			(11	)
Valuation allowance			(6,703	)			(5	)			(6,008	)			(5	)			(806	)			(1	)
Research and manufacturing incentive deductions and credits			(11,756	)			(9	)			(7,024	)			(6	)			(5,681	)			(5	)
Stock compensation			(1,914	)			(1	)			(4,103	)			(3	)			1,770				2
Repatriation tax			14,108				11				36,777				30				-				-
GILTI and FDII			6,437				5				-				-				-				-
Impact of U.S. tax rate change on deferred balances			-				-				(4,209	)			(3	)			-				-
Other			1,142				1				(893	)			(1	)			203				-
		$	21,296				17			$	34,192				28			$	23,514				20

Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards

The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2019:

Type		Amount				Expiration Date
($000)
Tax credit carryforwards:
Federal research and development credits		$	20,084			June 2029-June 2039
Foreign tax credits			1,088			June 2025-June 2027
State tax credits			12,449			June 2020-June 2039
State tax credits (indefinite)			448			Indefinite
Operating loss carryforwards:
Loss carryforwards - federal		$	59,749			June 2020-June 2036
Loss carryforwards - state			52,762			June 2020-June 2039
Loss carryforwards - foreign			8,467			June 2021-June 2027
Loss carryforwards - foreign (indefinite)			8,502			Indefinite

Schedule of Changes in Liability for Unrecognized Tax Benefits

Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2019, 2018 and 2017 were as follows:

		2019				2018				2017
($000)
Beginning balance		$	9,892			$	7,577			$	5,559
Increases in current year tax positions			191				2,536				895
Increases in prior year tax positions			376				224				2,605
Decreases in prior year tax positions			-				(9	)			-
Acquired business			6,036				-				-
Settlements			-				-				(1,143	)
Expiration of statute of limitations			(4,975	)			(436	)			(339	)
Ending balance		$	11,520			$	9,892			$	7,577

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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