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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Summary of Geographical Income Before Provision for Income Taxes

The following is a geographical breakdown of income before the provision for income taxes:

	Year Ended June 30,
	2017				2016				2015
Domestic income (loss)	$	110,562			$	(80,066	)		$	(26,927	)
Foreign income	138,989				370,843				292,971
Income before income taxes	$	249,551			$	290,777			$	266,044

Summary of Components of Income Tax Expense (Benefit)

The provision for (recovery of) income taxes consisted of the following:

	Year Ended June 30,
	2017				2016				2015
Current income taxes (recoveries):
Domestic	$	12,238			$	(3,119	)		$	(839	)
Foreign	82,593				63,862				47,055
	94,831				60,743				46,216
Deferred income taxes (recoveries):
Domestic	(851,683		)		(44,569		)		3,390
Foreign	(19,512		)		(9,892		)		(17,968		)
	(871,195		)		(54,461		)		(14,578		)
Provision for (recovery of) income taxes	$	(776,364	)		$	6,282			$	31,638

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:

	Year Ended June 30,
	2017				2016				2015
Expected statutory rate	26.5		%		26.5		%		26.5		%
Expected provision for income taxes	$	66,131			$	77,056			$	70,501
Effect of foreign tax rate differences	8,647				(71,478		)		(57,017		)
Change in valuation allowance	520				(34,999		)		6,617
Amortization of deferred charges	6,298				11,316				10,525
Effect of permanent differences	3,673				10,711				1,321
Effect of changes in unrecognized tax benefits	14,427				(264		)		(1,800		)
Effect of withholding taxes	3,845				3,457				3,045
Difference in tax filings from provision	(7,836		)		8,959				1,657
Other Items	4,045				1,524				(3,211		)
Impact of internal reorganization of subsidiaries	(876,114		)		—				—
	$	(776,364	)		$	6,282			$	31,638

Components of Deferred Tax Assets and Liabilities

The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:

	June 30,
	2017				2016
Deferred tax assets
Non-capital loss carryforwards	$	109,060			$	230,936
Capital loss carryforwards	246				473
Undeducted scientific research and development expenses	101,998				92,595
Depreciation and amortization	887,735				20,977
Restructuring costs and other reserves	22,956				16,008
Deferred revenue	75,248				72,537
Other	74,668				41,985
Total deferred tax asset	$	1,271,911			$	475,511
Valuation Allowance	$	(58,925	)		$	(88,208	)
Deferred tax liabilities
Scientific research and development tax credits	$	(12,070	)		$	(11,478	)
Acquired intangibles	—				(145,891		)
Other	(79,928		)		(68,004		)
Deferred tax liabilities	$	(91,998	)		$	(225,373	)
Net deferred tax asset	$	1,120,988			$	161,930
Comprised of:
Long-term assets	1,215,712				241,161
Long-term liabilities	(94,724		)		(79,231		)
	$	1,120,988			$	161,930

Summary of Income Tax Contingencies

Unrecognized tax benefits as of July 1, 2015	$	180,249
Increases on account of current year positions	4,669
Increases on account of prior year positions	8,366
Decreases due to settlements with tax authorities	(1,147		)
Decreases due to lapses of statutes of limitations	(17,652		)
Unrecognized tax benefits as of July 1, 2016	$	174,485
Increases on account of current year positions	5,675
Increases on account of prior year positions	18,938
Decreases due to settlements with tax authorities	(16,332		)
Decreases due to lapses of statutes of limitations	(8,236		)
Unrecognized tax benefits as of June 30, 2017	$	174,530

Interest and Penalties Related to Liabilities for Income Tax Expense

For the years ended June 30, 2017, 2016 and 2015, we recognized the following amounts as income tax-related interest expense and penalties:

	Year Ended June 30,
	2017				2016				2015
Interest expense	$	13,028			$	6,534			$	4,451
Penalties expense (recoveries)	438				(2,761		)		(2,032		)
Total	$	13,466			$	3,773			$	2,419

Interest Accrued and Penalties Accrued Related to Income Tax Expense

As of June 30, 2017 and 2016, the following amounts have been accrued on account of income tax-related interest expense and penalties:

	As of June 30, 2017				As of June 30, 2016
Interest expense accrued *	$	47,402			$	34,476
Penalties accrued *	$	2,160			$	1,615

* These balances have been included within "Long-term income taxes payable" within the Consolidated Balance Sheets.

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