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Income Taxes | 12 Months Ended
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Jun. 30, 2012
Income Taxes [Abstract] |
Income Taxes | Note 5 – Income Taxes We and our domestic subsidiaries file a consolidated Federal income tax return. Taxes based on income for the years ended June 30 have been provided as follows:
|  |  | 2012 |  | 2011 |  | 2010
| Currently payable: |  |  |  |  |  |
| Federal.................................................................................... |  | $ 41,214 |  | $ 43,140 |  | $ 55,422
| State and local...................................................................... |  | 4,116 |  | 4,542 |  | 3,933
| Total current provision..................................................... |  | 45,330 |  | 47,682 |  | 59,355
| Deferred Federal, state and local provision........................... |  | 4,893 |  | 7,460 |  | 814
| Total taxes based on income.......................................... |  | $ 50,223 |  | $ 55,142 |  | $ 60,169
Certain tax benefits recorded directly to common stock for each of the years ending June 30 were as follows:
|  |  | 2012 |  | 2011 |  | 2010
| Tax benefits recorded directly to common stock.............. |  | $301 |  | $479 |  | $674
For the years ended June 30, our effective tax rate varied from the statutory Federal income tax rate as a result of the following factors:
|  |  | 2012 |  | 2011 |  | 2010
| Statutory rate........................................................................................ |  | 35.0 % |  | 35.0 % |  | 35.0 %
| State and local income taxes............................................................. |  | 2.0 % |  | 1.9 % |  | 1.5 %
| ESOP dividend deduction................................................................... |  | (0.2)% |  | (0.2)% |  | (0.1)%
| Domestic manufacturing deduction................................................. |  | (2.5)% |  | (2.5)% |  | (1.9)%
| Other....................................................................................................... |  | 0.1 % |  | (0.1)% |  | (0.1)%
| Effective rate.................................................................................. |  | 34.4 % |  | 34.1 % |  | 34.4 %
The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 were comprised of:
|  |  | 2012 |  | 2011
| Deferred tax assets: |  |  |  |
| Inventories........................................................................................................... |  | $ 2,774 |  | $ 4,101
| Employee medical and other benefits............................................................ |  | 13,201 |  | 9,459
| Receivable and other allowances.................................................................... |  | 4,699 |  | 4,423
| Other accrued liabilities..................................................................................... |  | 2,869 |  | 3,437
| Total deferred tax assets.............................................................................. |  | 23,543 |  | 21,420
| Deferred tax liabilities: |  |  |  |
| Property, plant and equipment........................................................................ |  | (20,744) |  | (16,516)
| Goodwill............................................................................................................... |  | (3,427) |  | (3,083)
| Other..................................................................................................................... |  | (274) |  | (830)
| Total deferred tax liabilities......................................................................... |  | (24,445) |  | (20,429)
| Net deferred tax (liability) asset............................................................. |  | $ (902) |  | $ 991
Net current deferred tax assets and prepaid Federal, state and local income taxes were included in Deferred Income Taxes and Other Current Assets on the Consolidated Balance Sheet. The related balances at June 30 were as follows:
|  |  | 2012 |  | 2011
| Net current deferred tax assets......................................................................... |  | $ 13,168 |  | $ 15,739
| Prepaid Federal, state and local income taxes.............................................. |  | $ 1,958 |  | $ 8,140
Cash payments for income taxes for each of the years ending June 30 were as follows:
|  |  | 2012 |  | 2011 |  | 2010
| Cash payments for income taxes........................................ |  | $ 38,726 |  | $ 47,598 |  | $ 66,236
The gross tax contingency reserve at June 30, 2012 was approximately $1.9 million. The unrecognized tax benefits recorded as the gross tax contingency reserve noted in the following table for June 30, 2012 and 2011 would affect our effective tax rate, if recognized. The following table sets forth changes in our total gross tax contingency reserve (including interest and penalties):
|  |  | 2012 |  | 2011
| Balance, beginning of year................................................................................. |  | $1,795 |  | $ 1,921
| Tax positions related to current year: |  |  |  |
| Additions............................................................................................................ |  | 17 |  | 18
| Reductions......................................................................................................... |  | – |  | –
| Tax positions related to prior years: |  |  |  |
| Additions............................................................................................................ |  | 149 |  | 455
| Reductions......................................................................................................... |  | (22) |  | (599)
| Balance, end of year.................................................................................. |  | $1,939 |  | $ 1,795
We classified approximately $0.1 million of the gross tax contingency reserve at June 30, 2012 as current liabilities as these amounts are expected to be resolved within the next 12 months. The remaining liability of approximately $1.8 million was included in long-term liabilities. We expect that the amount of these liabilities will change within the next 12 months; however, we do not expect the change to have a significant effect on our financial position or results of operations. During 2010, we executed several state tax voluntary disclosure agreements. The settlement of these liabilities resulted in pre-tax income of approximately $0.9 million, which impacted our effective tax rate for 2010 by approximately 0.4%. We recognize interest and penalties related to these tax liabilities in income tax expense. For each of the years ended June 30, we recognized the change in the accrual for net tax-related interest and penalties as follows:
|  |  | 2012 |  | 2011
| Expense recognized for the net tax-related interest and penalties..................... |  | $120 |  | $ 96
We had accrued interest and penalties at June 30 as follows:
|  |  | 2012 |  | 2011
| Accrued interest and penalties included in the gross tax contingency reserve.. |  | $ 922 |  | $ 802
We file income tax returns in the U.S. and various state and local jurisdictions. With limited exceptions, we are no longer subject to examination of U.S. Federal or state and local income taxes for years prior to 2009. The American Jobs Creation Act provided a tax deduction calculated as a percentage of qualified income from manufacturing in the United States. The deduction percentage for 2012 was 9%. In accordance with FASB guidance, this deduction is treated as a special deduction, as opposed to a tax rate reduction.

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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 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
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