XML 62 R17.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2014
Income Taxes | J. Income Taxes: The provisions for income taxes consist of the following (in thousands):
|  | Year Ended June 30, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Earnings before income taxes consist of: |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 127,681 |  |  | $ | 127,491 |  |  | $ | 130,009 |
Foreign |  |  | 33,711 |  |  |  | 33,171 |  |  |  | 32,186 |
|  | $ | 161,392 |  |  | $ | 160,662 |  |  | $ | 162,195 |
Taxes on income consist of: |  |  |  |  |  |  |  |  |  |  |  |
Currently payable: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 40,967 |  |  | $ | 37,666 |  |  | $ | 42,288 |
State |  |  | 1,709 |  |  |  | 2,012 |  |  |  | 3,065 |
Foreign |  |  | 10,668 |  |  |  | 10,758 |  |  |  | 8,891 |
Net deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (1,137 | ) |  |  | (595 | ) |  |  | (4,318 | )
State |  |  | (41 | ) |  |  | (7 | ) |  |  | (149 | )
Foreign |  |  | (1,722 | ) |  |  | (1,733 | ) |  |  | 87 |
|  | $ | 50,444 |  |  | $ | 48,101 |  |  | $ | 49,864 |
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, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Computed expected federal income tax expense |  | $ | 56,487 |  |  | $ | 56,232 |  |  | $ | 56,768 |
State income taxes, net of federal benefit |  |  | 1,048 |  |  |  | 1,300 |  |  |  | 2,038 |
Qualified production activity deduction |  |  | (3,823 | ) |  |  | (3,774 | ) |  |  | (3,917 | )
Research and development tax credit |  |  | (476 | ) |  |  | (1,392 | ) |  |  | (465 | )
Tax-exempt interest |  |  | (654 | ) |  |  | (568 | ) |  |  | (565 | )
Foreign tax rate differences |  |  | (2,857 | ) |  |  | (2,587 | ) |  |  | (2,276 | )
Change in deferred tax valuation allowance |  |  | 0 |  |  |  | 0 |  |  |  | (3,016 | )
Other |  |  | 719 |  |  |  | (1,110 | ) |  |  | 1,297 |
|  | $ | 50,444 |  |  | $ | 48,101 |  |  | $ | 49,864 |
Temporary differences comprising deferred taxes on the Consolidated Balance Sheets are as follows (in thousands):
|  | June 30 |
|  | 2014 |  |  | 2013 |
Inventory |  | $ | 9,932 |  |  | $ | 9,049 |
Unrealized profit on intercompany sales |  |  | 1,959 |  |  |  | 1,973 |
Excess tax basis in equity investments |  |  | 4,344 |  |  |  | 4,760 |
Deferred compensation |  |  | 3,295 |  |  |  | 3,161 |
Other |  |  | 1,129 |  |  |  | 885 |
Valuation allowance |  |  | (1,806 | ) |  |  | 0 |
Net deferred tax assets |  |  | 18,853 |  |  |  | 19,828 |
Net unrealized gain on available-for-sale investments |  |  | (2,745 | ) |  |  | (21,662 | )
Goodwill and intangible asset amortization |  |  | (37,641 | ) |  |  | (15,195 | )
Depreciation |  |  | (2,166 | ) |  |  | (701 | )
Other |  |  | (516 | ) |  |  | (687 | )
Deferred tax liabilities |  |  | (43,068 | ) |  |  | (38,245 | )
Net deferred tax liabilities |  | $ | (24,215 | ) |  | $ | (18,417 | )
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, 2014, the Company has provided a valuation allowance for potential capital loss carryovers resulting from excess tax basis in certain of its equity investments. The Company believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the recorded deferred tax assets. During fiscal 2013, the Company’s R&D Europe subsidiary declared and paid a dividend of £20 million ($30.7 million) to the Company. The £20 million R&D Europe earnings had previously been taxed in the U.S. and therefore, no additional U.S. tax resulted from the repatriation. Undistributed earnings of the Company’s foreign subsidiaries amounted to approximately $174 million as of June 30, 2014. 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. The Company’s unrecognized tax benefits at June 30, 2014, 2013 and 2012, including accrued interest and penalties, were not material. The Company does not believe it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase in the next twelve months. The Company files income tax returns in the U.S federal tax jurisdiction, the states of Minnesota, Massachusetts and California, and several jurisdictions outside the U.S. U.S. tax returns for 2011 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 2011 and subsequent years, and China, which has calendar year 2014 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 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
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration