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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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