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Income Taxes | 12 Months Ended
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Jun. 30, 2014
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Income Before Income Taxes The components of income before income taxes are as follows:
Year Ended June 30, | 2014 |  |  | 2013 |  |  | 2012 |
U.S. | $ | 147,980 |  |  | $ | 153,546 |  |  | $ | 137,667 |
Foreign | 18,282 |  |  | 24,119 |  |  | 29,159 |
Income before income taxes | $ | 166,262 |  |  | $ | 177,665 |  |  | $ | 166,826 |
Provision The provision (benefit) for income taxes consists of:
Year Ended June 30, | 2014 |  |  | 2013 |  |  | 2012 |
Current: |  |  |  |  |
Federal | $ | 50,455 |  |  | $ | 38,859 |  |  | $ | 36,178 |
State and local | 6,576 |  |  | 5,736 |  |  | 5,522 |
Foreign | 4,619 |  |  | 4,742 |  |  | 7,706 |
Total current | 61,650 |  |  | 49,337 |  |  | 49,406 |
Deferred: |  |  |  |  |
Federal | (5,328 | ) |  | 10,277 |  |  | 8,577 |
State and local | (267 | ) |  | 346 |  |  | 503 |
Foreign | (2,614 | ) |  | (444 | ) |  | (439 | )
Total deferred | (8,209 | ) |  | 10,179 |  |  | 8,641 |
Total | $ | 53,441 |  |  | $ | 59,516 |  |  | $ | 58,047 |
The exercise of non-qualified stock appreciation rights and options during fiscal 2014, 2013 and 2012 resulted in $1,462, $1,675 and $2,725, respectively, of income tax benefits to the Company derived from the difference between the market price at the date of exercise and the option price. Vesting of stock awards and other stock compensation in fiscal 2014, 2013 and 2012 resulted in $1,211, $890 and $970, respectively, of incremental income tax benefits over the amounts previously reported for financial reporting purposes. These tax benefits were recorded in additional paid-in capital. Effective Tax Rates The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:
Year Ended June 30, | 2014 |  |  | 2013 |  |  | 2012 |
Statutory income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Effects of: |  |  |  |  |
State and local taxes | 2.4 | % |  | 2.3 | % |  | 2.5 | %
U.S. tax on foreign income, net | (1.6 | )% |  | — | % |  | — | %
Foreign income taxes | (2.6 | )% |  | (2.3 | )% |  | (1.8 | )%
Deductible dividend | (0.5 | )% |  | (0.5 | )% |  | (0.5 | )%
Other, net | (0.6 | )% |  | (1.0 | )% |  | (0.4 | )%
Effective income tax rate | 32.1 | % |  | 33.5 | % |  | 34.8 | %
Consolidated Balance Sheets Significant components of the Company’s net deferred tax assets are as follows:
June 30, | 2014 |  |  | 2013 |
Deferred tax assets: |  |  |
Compensation liabilities not currently deductible | $ | 30,662 |  |  | $ | 33,506 |
Expenses and reserves not currently deductible | 8,364 |  |  | 6,131 |
Goodwill and intangibles | 8,294 |  |  | 3,781 |
Net operating loss carryforwards (expiring in years 2017-2034) | 386 |  |  | 432 |
Other | 281 |  |  | 607 |
Total deferred tax assets | 47,987 |  |  | 44,457 |
Less: Valuation allowance | — |  |  | (11 | )
Deferred tax assets, net of valuation allowance | 47,987 |  |  | 44,446 |
Deferred tax liabilities: |  |  |
Inventories | (6,490 | ) |  | (9,057 | )
Goodwill and intangibles | (23,254 | ) |  | — |
Unremitted foreign earnings | — |  |  | (2,804 | )
Depreciation and differences in property bases | (10,219 | ) |  | (11,460 | )
Total deferred tax liabilities | (39,963 | ) |  | (23,321 | )
Net deferred tax assets | $ | 8,024 |  |  | $ | 21,125 |
The net deferred tax asset is classified as follows: |  |  |
Other current assets | $ | 11,371 |  |  | $ | 6,315 |
Deferred tax assets (long-term) | 21,166 |  |  | 21,026 |
Other liabilities | (24,513 | ) |  | (6,216 | )
Net deferred tax assets | $ | 8,024 |  |  | $ | 21,125 |
Valuation allowances are provided against deferred tax assets where it is considered more-likely-than-not that the Company will not realize the benefit of such assets. The remaining net deferred tax asset is the amount management believes is more-likely-than-not of being realized. The realization of these deferred tax assets can be impacted by changes to tax laws, statutory rates and future income levels. U.S. federal income taxes are provided on the portion of non-U.S. subsidiaries' income that is not considered to be permanently reinvested outside the U.S. and may be remitted to the U.S. At June 30, 2014, undistributed earnings of non-U.S. subsidiaries considered to be permanently reinvested and for which no U.S. tax has been provided totaled approximately $134,035. Determination of the net amount of the unrecognized tax liability with respect to the distribution of these earnings is not practicable; however, foreign tax credits would be available to partially reduce U.S. income taxes in the event of a distribution. In 2014, the Company recognized a tax benefit of $2,804 related to U.S. tax on foreign income which reduced the Company's effective tax rate by approximately 1.6%. This tax benefit was due to the reversal of taxes previously accrued on a portion of the undistributed earnings of non-U.S. subsidiaries applicable to a change in the permanent reinvestment assertion. All undistributed earnings of non-U.S. subsidiaries are considered to be permanently reinvested outside of the U.S. at June 30, 2014. Unrecognized Income Tax Benefits The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2014, 2013 and 2012:
Year Ended June 30, | 2014 |  |  | 2013 |  |  | 2012 |
Unrecognized Income Tax Benefits at beginning of the year | $ | 2,655 |  |  | $ | 1,539 |  |  | $ | 1,181 |
Current year tax positions | 730 |  |  | 957 |  |  | 331 |
Prior year tax positions | — |  |  | 790 |  |  | 398 |
Expirations of statutes of limitations | (1,007 | ) |  | (565 | ) |  | (371 | )
Settlements | (14 | ) |  | (66 | ) |  | — |
Unrecognized Income Tax Benefits at end of year | $ | 2,364 |  |  | $ | 2,655 |  |  | $ | 1,539 |
Included in the balance of unrecognized income tax benefits at June 30, 2014, 2013 and 2012 are $2,104, $2,342 and $1,221, respectively, of income tax benefits that, if recognized, would affect the effective income tax rate. During 2014, 2013 and 2012, the Company recognized $16 and $3 of expense and $95 of benefit, respectively, for interest and penalties related to unrecognized income tax benefits in its statements of consolidated income. The Company had a liability for penalties and interest of $449 and $433 as of June 30, 2014 and 2013, respectively. The Company does not anticipate a significant change to the total amount of unrecognized income tax benefits within the next twelve months. The Company is subject to U.S. federal income tax examinations for the tax years 2011 through 2014 and to state and local income tax examinations for the tax years 2008 through 2014. In addition, the Company is subject to foreign income tax examinations for the tax years 2007 through 2014. The Company’s unrecognized income tax benefits are included in other liabilities in the consolidated balance sheets since payment of cash is not expected within one year.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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