XML 59 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Income taxes | 12 Months Ended
--- | ---
Jun. 30, 2012
Income taxes | K. Income taxes: The provisions for income taxes consist of the following (in thousands):
|  | Year Ended June 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Earnings before income taxes consist of: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 130,009 |  |  | $ | 131,080 |  |  | $ | 124,860 |
Foreign |  |  | 32,186 |  |  |  | 33,901 |  |  |  | 31,586 |
|  | $ | 162,195 |  |  | $ | 164,981 |  |  | $ | 156,446 |
Taxes on income consist of: |  |  |  |  |  |  |  |  |  |  |  |
Currently payable: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 42,288 |  |  | $ | 36,600 |  |  | $ | 37,098 |
State |  |  | 3,065 |  |  |  | 2,302 |  |  |  | 1,856 |
Foreign |  |  | 8,891 |  |  |  | 9,854 |  |  |  | 9,266 |
Net deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (4,318 | ) |  |  | 3,893 |  |  |  | (1,494 | )
State |  |  | (149 | ) |  |  | 19 |  |  |  | 39 |
Foreign |  |  | 87 |  |  |  | 11 |  |  |  | (95 | )
|  | $ | 49,864 |  |  | $ | 52,679 |  |  | $ | 46,670 |
The following is a reconciliation of the federal tax calculated at the statutory rate of 35% to the actual income taxes provided (in thousands):
|  | Year Ended June 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Computed expected federal income tax expense |  | $ | 56,768 |  |  | $ | 57,743 |  |  | $ | 54,756 |
State income taxes, net of federal benefit |  |  | 2,038 |  |  |  | 1,463 |  |  |  | 1,247 |
Qualified production activity deduction |  |  | (3,917 | ) |  |  | (3,889 | ) |  |  | (2,459 | )
Research and development tax credit |  |  | (465 | ) |  |  | (1,329 | ) |  |  | (444 | )
Tax-exempt interest |  |  | (565 | ) |  |  | (858 | ) |  |  | (1,114 | )
Change in deferred tax valuation allowance |  |  | (3,016 | ) |  |  | 60 |  |  |  | 44 |
Foreign exchange loss on repatriation |  |  | 0 |  |  |  | 0 |  |  |  | (4,424 | )
Other |  |  | (979 | ) |  |  | (511 | ) |  |  | (936 | )
|  | $ | 49,864 |  |  | $ | 52,679 |  |  | $ | 46,670 |
Temporary differences comprising deferred taxes on the Consolidated Balance Sheets are as follows (in thousands):
|  | June 30 |
|  | 2012 |  |  | 2011 |
Inventory |  | $ | 6,893 |  |  | $ | 4,269 |
Unrealized profit on intercompany sales |  |  | 1,686 |  |  |  | 1,075 |
Excess tax basis in equity investments |  |  | 4,776 |  |  |  | 3,643 |
Deferred compensation |  |  | 2,651 |  |  |  | 2,198 |
Other |  |  | 891 |  |  |  | 596 |
Valuation allowance |  |  | 0 |  |  |  | (3,016 | )
Net deferred tax assets |  |  | 16,897 |  |  |  | 8,765 |
Net unrealized gain on available-for-sale investments |  |  | (23,791 | ) |  |  | (369 | )
Goodwill and intangible asset amortization |  |  | (15,123 | ) |  |  | (15,077 | )
Depreciation |  |  | (847 | ) |  |  | (485 | )
Other |  |  | (502 | ) |  |  | (397 | )
Deferred tax liabilities |  |  | (40,263 | ) |  |  | (16,328 | )
Net deferred tax liabilities |  | $ | (23,366 | ) |  | $ | (7,563 | )
A deferred tax valuation allowance is required when it is more likely than not that all or a portion of deferred tax assets will not be realized. At June 30, 2011, the Company had provided a valuation allowance for potential capital loss carryovers resulting from excess tax basis in certain of its equity investments. The Company has determined that the valuation allowance is no longer necessary as a result of the Company’s unrealized gain on its CCXI investment at June 30, 2012. The Company has the intent and ability to sell a portion of its CCXI investment and realize a long-term capital gain to offset losses on its investments in unconsolidated entities. The Company believes that it is more likely than not that the recorded deferred tax assets will be realized. During fiscal 2010, the Company’s R&D Europe subsidiary declared and paid a dividend of £50 million ($74.4 million) to the Company. The £50 million R&D Europe earnings had previously been taxed in the U.S. and therefore, no additional U.S. income tax resulted from the repatriation. The Company recorded a foreign currency exchange tax loss on the transaction of approximately $12.8 million and as a result, reported a $4.7 million reduction in income tax expense in fiscal 2010. Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $144 million as of June 30, 2012. Deferred taxes have not been provided on such undistributed earnings, as the Company has either paid U.S. taxes on the undistributed earnings or intends to indefinitely reinvest the undistributed earnings in the foreign operations. A summary of changes in unrecognized tax benefits is as follows (in thousands):
|  | June 30 |
|  | 2012 |  |  | 2011 |
Beginning balance |  | $ | 34 |  |  | $ | 96 |
Change due to tax positions related to the current year |  |  | (4 | ) |  |  | (53 | )
Decrease due to lapse of statute of limitations |  |  | (7 | ) |  |  | (9 | )
Ending balance |  | $ | 23 |  |  | $ | 34 |
The gross unrecognized tax benefit balance as of June 30, 2012, 2011 and 2010 includes $2,000, $3,000 and $5,000 of unrecognized tax benefits that, if recognized, would affect the effective tax rate. Accrued interest and penalties were not material at June 30, 2012 and 2011. The Company does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease in the next twelve months. The Company files income tax returns in the U.S federal tax jurisdiction, the states of Minnesota, Massachusetts, California and Missouri, and several jurisdictions outside the U.S. U.S. tax returns for 2009 and subsequent years remain open to examination by the tax authorities. The Company’s major non-U.S. tax jurisdictions are the United Kingdom, France and Germany, which have tax years open to examination for 2009 and subsequent years, and China, which has calendar year 2012 open to examination.

X
- 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 Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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=6881521&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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: 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 7: 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 8: 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration