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Income Taxes | 12 Months Ended
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Jun. 30, 2017
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, | 2017 |  |  | 2016 |  |  | 2015 |
U.S. | $ | 154,472 |  |  | $ | 139,960 |  |  | $ | 152,618 |
Foreign | 12,494 |  |  | (60,982 | ) |  | 23,253 |
Income before income taxes | $ | 166,966 |  |  | $ | 78,978 |  |  | $ | 175,871 |
Provision The provision (benefit) for income taxes consists of:
Year Ended June 30, | 2017 |  |  | 2016 |  |  | 2015 |
Current: |  |  |  |  |
Federal | $ | 26,456 |  |  | $ | 45,226 |  |  | $ | 52,861 |
State and local | 4,692 |  |  | 6,349 |  |  | 6,884 |
Foreign | 4,760 |  |  | 4,407 |  |  | 5,603 |
Total current | 35,908 |  |  | 55,982 |  |  | 65,348 |
Deferred: |  |  |  |  |
Federal | 852 |  |  | 397 |  |  | (3,799 | )
State and local | 535 |  |  | (30 | ) |  | (153 | )
Foreign | (4,239 | ) |  | (6,948 | ) |  | (1,009 | )
Total deferred | (2,852 | ) |  | (6,581 | ) |  | (4,961 | )
Total | $ | 33,056 |  |  | $ | 49,401 |  |  | $ | 60,387 |
During the fourth quarter of fiscal 2017, the Company recorded a net tax benefit of $22,246 pertaining to a worthless stock deduction. The tax benefit of this deduction was based on the write-off of the Company's investment in one of its Canadian subsidiaries for US tax purposes reduced by $1,019 of tax provided for a valuation allowance applicable to the related state deferred income tax asset. The exercise of non-qualified stock appreciation rights and options during fiscal 2017, 2016 and 2015 resulted in $1,921, $212 and $352, respectively, of income tax benefits to the Company derived from the difference between the market and option price of the shares at the date of exercise and the fair value of the options on the grant date. Vesting of stock awards and other stock compensation in fiscal 2017, 2016 and 2015 resulted in $482, $(4) and $690, respectively, of incremental income tax benefits (expense) over the amounts previously reported for financial reporting purposes. Due to the adoption of ASU 2016-09, the tax benefits for fiscal 2017 were recorded in income tax expense in the statements of consolidated income, while the fiscal 2016 and 2015 tax (expense) 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, | 2017 |  |  | 2016 |  |  | 2015 |
Statutory income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
Effects of: |  |  |  |  |
State and local taxes | 2.8 |  |  | 5.2 |  |  | 2.5 |
Worthless stock deduction | (13.9 | ) |  | — |  |  | — |
Stock compensation | (1.4 | ) |  | — |  |  | — |
Goodwill impairment | — |  |  | 27.1 |  |  | — |
Foreign income taxes | (2.3 | ) |  | (3.0 | ) |  | (2.5 | )
Deductible dividend | (0.4 | ) |  | (0.9 | ) |  | (0.5 | )
Valuation allowance | 0.3 |  |  | 0.5 |  |  | 0.5 |
Other, net | (0.3 | ) |  | (1.3 | ) |  | (0.7 | )
Effective income tax rate | 19.8 | % |  | 62.6 | % |  | 34.3 | %
Consolidated Balance Sheets Significant components of the Company’s deferred tax assets and liabilities are as follows:
June 30, | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |
Compensation liabilities not currently deductible | $ | 26,873 |  |  | $ | 25,992 |
Other expenses and reserves not currently deductible | 11,601 |  |  | 11,650 |
Goodwill and intangibles | 5,661 |  |  | 6,366 |
Foreign tax credit (expiring in years 2025-2026) | 709 |  |  | 849 |
Net operating loss carryforwards (expiring in years 2018-2037) | 5,729 |  |  | 4,960 |
Other | 119 |  |  | 83 |
Total deferred tax assets | 50,692 |  |  | 49,900 |
Less: Valuation allowance | (1,831 | ) |  | (1,347 | )
Deferred tax assets, net of valuation allowance | 48,861 |  |  | 48,553 |
Deferred tax liabilities: |  |  |
Inventories | (7,447 | ) |  | (4,785 | )
Goodwill and intangibles | (30,482 | ) |  | (33,353 | )
Depreciation and differences in property bases | (10,122 | ) |  | (9,892 | )
Total deferred tax liabilities | (48,051 | ) |  | (48,030 | )
Net deferred tax assets | $ | 810 |  |  | $ | 523 |
Net deferred tax assets are classified as follows: |  |  |
Deferred tax assets | $ | 8,985 |  |  | $ | 12,277 |
Other liabilities | (8,175 | ) |  | (11,754 | )
Net deferred tax assets | $ | 810 |  |  | $ | 523 |
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, 2017, all undistributed earnings of non-U.S. subsidiaries are considered to be permanently reinvested and totaled approximately $92,106, for which no U.S. tax has been provided. 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 fiscal 2015, $17,793 of cash was distributed by one of the Company's non-US subsidiaries as a non-taxable return of capital. 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, 2017, 2016 and 2015:
Year Ended June 30, | 2017 |  |  | 2016 |  |  | 2015 |
Unrecognized Income Tax Benefits at beginning of the year | $ | 2,915 |  |  | $ | 2,604 |  |  | $ | 2,364 |
Current year tax positions | 574 |  |  | 539 |  |  | 472 |
Prior year tax positions | 259 |  |  | — |  |  | — |
Expirations of statutes of limitations | (189 | ) |  | (132 | ) |  | (160 | )
Settlements | (26 | ) |  | (96 | ) |  | (72 | )
Unrecognized Income Tax Benefits at end of year | $ | 3,533 |  |  | $ | 2,915 |  |  | $ | 2,604 |
Included in the balance of unrecognized income tax benefits at June 30, 2017, 2016 and 2015 are $3,323, $2,691 and $2,377, respectively, of income tax benefits that, if recognized, would affect the effective income tax rate. During 2017, 2016 and 2015, the Company recognized $163 and $127 and $49 of expense, 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 $787 and $625 as of June 30, 2017 and 2016, 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 2014 through 2017 and to state and local income tax examinations for the tax years 2011 through 2017. In addition, the Company is subject to foreign income tax examinations for the tax years 2010 through 2017. 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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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