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Income Taxes | 12 Months Ended
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Jun. 30, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes ​ Income (loss) before income taxes was:
For the Years Ended June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​ | 2013 | ​
Domestic | ​ | ​ | ​ | $ | 15,937 | ​ | ​ | ​ | ​ | $ | (26,226) | ​ | ​ | ​ | ​ | ​ | (6,581) | ​ | ​
Foreign | ​ | ​ | ​ | ​ | 62,826 | ​ | ​ | ​ | ​ | ​ | 32,534 | ​ | ​ | ​ | ​ | ​ | 24,429 | ​ | ​
Income (loss) before income taxes | ​ | ​ | ​ | $ | 78,763 | ​ | ​ | ​ | ​ | $ | 6,308 | ​ | ​ | ​ | ​ | ​ | 17,848 | ​ | ​
​
Components of the provision for income taxes were:
For the Years Ended June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​ | 2013 | ​
Current provision (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | ​ | ​ | $ | (468) | ​ | ​ | ​ | ​ | $ | (673) | ​ | ​ | ​ | ​ | $ | — | ​ | ​
State and local | ​ | ​ | ​ | ​ | (48) | ​ | ​ | ​ | ​ | ​ | (268) | ​ | ​ | ​ | ​ | ​ | 391 | ​ | ​
Foreign | ​ | ​ | ​ | ​ | 13,868 | ​ | ​ | ​ | ​ | ​ | 9,087 | ​ | ​ | ​ | ​ | ​ | 4,487 | ​ | ​
Total current provision | ​ | ​ | ​ | ​ | 13,352 | ​ | ​ | ​ | ​ | ​ | 8,146 | ​ | ​ | ​ | ​ | ​ | 4,878 | ​ | ​
Deferred provision (benefit): | ​ | ​ | ​ | ​
Federal | ​ | ​ | ​ | ​ | 6,157 | ​ | ​ | ​ | ​ | ​ | (1,632) | ​ | ​ | ​ | ​ | ​ | (12,160) | ​ | ​
State and local | ​ | ​ | ​ | ​ | 1,311 | ​ | ​ | ​ | ​ | ​ | (1,877) | ​ | ​ | ​ | ​ | ​ | (616) | ​ | ​
Foreign | ​ | ​ | ​ | ​ | 5,933 | ​ | ​ | ​ | ​ | ​ | 966 | ​ | ​ | ​ | ​ | ​ | (1,204) | ​ | ​
Change in valuation allowance–domestic | ​ | ​ | ​ | ​ | (7,468) | ​ | ​ | ​ | ​ | ​ | 3,509 | ​ | ​ | ​ | ​ | ​ | 1,704 | ​ | ​
Change in valuation allowance–foreign | ​ | ​ | ​ | ​ | (802) | ​ | ​ | ​ | ​ | ​ | 323 | ​ | ​ | ​ | ​ | ​ | 355 | ​ | ​
Total deferred provision | ​ | ​ | ​ | ​ | 5,131 | ​ | ​ | ​ | ​ | ​ | 1,289 | ​ | ​ | ​ | ​ | ​ | (11,921) | ​ | ​
Provision (benefit) for income taxes | ​ | ​ | ​ | $ | 18,483 | ​ | ​ | ​ | ​ | $ | 9,435 | ​ | ​ | ​ | ​ | $ | (7,043) | ​ | ​
​
Reconciliations of the Federal statutory rate to the Company’s effective tax rate were:
For the Years Ended June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​ | 2013 | ​
Federal income tax rate | ​ | ​ | ​ | ​ | 35.0% | ​ | ​ | ​ | ​ | ​ | 35.0% | ​ | ​ | ​ | ​ | ​ | 35.0% | ​ | ​
State and local taxes, net of federal benefit | ​ | ​ | ​ | ​ | 0.2 | ​ | ​ | ​ | ​ | ​ | (0.9) | ​ | ​ | ​ | ​ | ​ | 1.4 | ​ | ​
Change in federal valuation allowance | ​ | ​ | ​ | ​ | (7.8) | ​ | ​ | ​ | ​ | ​ | 43.6 | ​ | ​ | ​ | ​ | ​ | 7.8 | ​ | ​
Foreign income tax rates and change in foreign valuation allowance | ​ | ​ | ​ | ​ | (1.6) | ​ | ​ | ​ | ​ | ​ | (60.9) | ​ | ​ | ​ | ​ | ​ | (17.5) | ​ | ​
Foreign withholding tax | ​ | ​ | ​ | ​ | 0.3 | ​ | ​ | ​ | ​ | ​ | 36.5 | ​ | ​ | ​ | ​ | ​ | 1.4 | ​ | ​
Foreign incentive tax rates | ​ | ​ | ​ | ​ | (4.1) | ​ | ​ | ​ | ​ | ​ | (30.1) | ​ | ​ | ​ | ​ | ​ | (13.9) | ​ | ​
Acquisition related change in domestic valuation allowance | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (50.7) | ​ | ​
Change in liability for uncertain tax positions | ​ | ​ | ​ | ​ | 1.5 | ​ | ​ | ​ | ​ | ​ | (34.9) | ​ | ​ | ​ | ​ | ​ | 5.4 | ​ | ​
Taxable income not recorded on books | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | 0.6 | ​ | ​
Repatriation of foreign earnings | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | 138.7 | ​ | ​ | ​ | ​ | ​ | — | ​ | ​
Permanent items | ​ | ​ | ​ | ​ | (0.3) | ​ | ​ | ​ | ​ | ​ | 26.1 | ​ | ​ | ​ | ​ | ​ | (7.9) | ​ | ​
Other | ​ | ​ | ​ | ​ | 0.3 | ​ | ​ | ​ | ​ | ​ | (3.5) | ​ | ​ | ​ | ​ | ​ | (1.1) | ​ | ​
Effective tax rate | ​ | ​ | ​ | ​ | 23.5% | ​ | ​ | ​ | ​ | ​ | 149.6% | ​ | ​ | ​ | ​ | ​ | (39.5)% | ​ | ​
​
We have not provided for United States or additional foreign taxes on approximately $125,313 of undistributed earnings of foreign subsidiaries, which earnings have been or are intended to be indefinitely reinvested. It is not practicable at this time to determine the amount of income tax liability that would result should such earnings be repatriated. Taxes are not provided for foreign currency translation adjustments relating to investments in international subsidiaries that will be held indefinitely. During 2014, we reviewed the ongoing cash needs of our foreign subsidiaries and determined $25,000 was not needed for reinvestment. Based on this review, we changed our indefinite reinvestment assertion solely with respect to those earnings and recorded $3,160 of foreign withholding taxes in the provision for income taxes. Our domestic operations received a $25,000 repatriation of foreign earnings in 2014. The tax effects of significant temporary differences that comprise deferred tax assets and liabilities were:
As of June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​
Deferred tax assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Employee related accruals | ​ | ​ | ​ | $ | 9,778 | ​ | ​ | ​ | ​ | $ | 12,417 | ​ | ​ | ​
Inventory | ​ | ​ | ​ | ​ | 3,889 | ​ | ​ | ​ | ​ | ​ | 2,303 | ​ | ​ | ​
Environmental remediation | ​ | ​ | ​ | ​ | 2,155 | ​ | ​ | ​ | ​ | ​ | 2,306 | ​ | ​ | ​
Net operating loss carry forwards–domestic | ​ | ​ | ​ | ​ | 13,641 | ​ | ​ | ​ | ​ | ​ | 19,183 | ​ | ​ | ​
Net operating loss carry forwards–foreign | ​ | ​ | ​ | ​ | 4,127 | ​ | ​ | ​ | ​ | ​ | 8,729 | ​ | ​ | ​
Other | ​ | ​ | ​ | ​ | 5,418 | ​ | ​ | ​ | ​ | ​ | 7,237 | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | 39,008 | ​ | ​ | ​ | ​ | ​ | 52,175 | ​ | ​ | ​
Valuation allowance | ​ | ​ | ​ | ​ | (26,622) | ​ | ​ | ​ | ​ | ​ | (32,892) | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | 12,386 | ​ | ​ | ​ | ​ | ​ | 19,283 | ​ | ​ | ​
Deferred tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Property, plant and equipment and intangible assets | ​ | ​ | ​ | ​ | (11,088) | ​ | ​ | ​ | ​ | ​ | (13,428) | ​ | ​ | ​
Unrealized foreign exchange gains | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (4,680) | ​ | ​ | ​
Other | ​ | ​ | ​ | ​ | (461) | ​ | ​ | ​ | ​ | ​ | (131) | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | (11,549) | ​ | ​ | ​ | ​ | ​ | (18,239) | ​ | ​ | ​
Net deferred tax asset (liability) | ​ | ​ | ​ | $ | 837 | ​ | ​ | ​ | ​ | $ | 1,044 | ​ | ​ | ​
​
Deferred taxes are included in the consolidated balance sheets as follows:
As of June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​
Prepaid expenses and other current assets | ​ | ​ | ​ | $ | 7,456 | ​ | ​ | ​ | ​ | $ | 3,242 | ​ | ​
Accrued expenses and other current liabilities | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (1,626) | ​ | ​
Other assets | ​ | ​ | ​ | ​ | 222 | ​ | ​ | ​ | ​ | ​ | 3,486 | ​ | ​
Other liabilities | ​ | ​ | ​ | ​ | (6,841) | ​ | ​ | ​ | ​ | ​ | (4,058) | ​ | ​
​ | ​ | ​ | ​ | $ | 837 | ​ | ​ | ​ | ​ | $ | 1,044 | ​ | ​
​
We review the realizability of our deferred tax assets whenever circumstances require. As of June 30, 2015, we evaluated the positive and negative evidence relating to the realizability of certain deferred tax assets and determined we will maintain a full valuation allowance against our deferred tax assets from domestic and certain foreign jurisdictions. Currently there is insufficient positive evidence to support that it is more likely than not we will be able to utilize these deferred tax assets. We will evaluate the realizability of the deferred tax assets in future periods, and to the extent that a positive earnings trend continues, a significant portion of the valuation allowances may be released, resulting in a benefit to the provision for income taxes. The valuation allowances for deferred tax assets for the periods presented were:
As of June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​ | 2013 | ​
Balance at beginning of period | ​ | ​ | ​ | $ | 32,892 | ​ | ​ | ​ | ​ | $ | 27,753 | ​ | ​ | ​ | ​ | $ | 36,763 | ​ | ​
Provision for income taxes | ​ | ​ | ​ | ​ | (6,270) | ​ | ​ | ​ | ​ | ​ | 5,139 | ​ | ​ | ​ | ​ | ​ | 2,059 | ​ | ​
Permanent adjustment for Other Comprehensive Income | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (2,016) | ​ | ​
Acquisition related adjustment | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (9,053) | ​ | ​
Balance at end of period | ​ | ​ | ​ | $ | 26,622 | ​ | ​ | ​ | ​ | $ | 32,892 | ​ | ​ | ​ | ​ | $ | 27,753 | ​ | ​
​
The valuation allowance for deferred tax assets as of June 30, 2015, includes $21,887 related to domestic jurisdictions and $4,735 related to foreign jurisdictions. The change in valuation allowance for the year ended June 30, 2013, included a $9,053 reversal of domestic valuation allowance. The reversal offset acquisition-related deferred tax liabilities recorded related to certain acquired definite-lived intangible assets. The Company has approximately $34,728 of domestic federal net operating loss carry forwards that expire in 2027 through 2034 and approximately $67,644 of state net operating loss carry forwards that will expire in 2015 through 2034. In addition, the Company has approximately $13,396 of foreign net operating loss carry forwards, most of which are in jurisdictions which have no expiration. Unrecognized tax benefits of  $8,078, along with accrued interest and penalties of  $1,326 as of June 30 2015, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits for the periods presented are detailed below:
As of June 30 | ​ | ​ | 2015 | ​ | ​ | 2014 | ​ | ​ | 2013 | ​
Unrecognized tax benefits–beginning of period | ​ | ​ | ​ | $ | 7,420 | ​ | ​ | ​ | ​ | $ | 12,261 | ​ | ​ | ​ | ​ | $ | 6,565 | ​ | ​
Tax position changes–prior periods | ​ | ​ | ​ | ​ | (24) | ​ | ​ | ​ | ​ | ​ | 1,276 | ​ | ​ | ​ | ​ | ​ | 4,996 | ​ | ​
Tax position changes–current period | ​ | ​ | ​ | ​ | 1,945 | ​ | ​ | ​ | ​ | ​ | 1,036 | ​ | ​ | ​ | ​ | ​ | 404 | ​ | ​
Settlements with tax authorities | ​ | ​ | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | (2,215) | ​ | ​ | ​ | ​ | ​ | — | ​ | ​
Lapse of statute of limitations | ​ | ​ | ​ | ​ | (907) | ​ | ​ | ​ | ​ | ​ | (5,157) | ​ | ​ | ​ | ​ | ​ | — | ​ | ​
Translation | ​ | ​ | ​ | ​ | (356) | ​ | ​ | ​ | ​ | ​ | 219 | ​ | ​ | ​ | ​ | ​ | 296 | ​ | ​
Unrecognized tax benefits–end of period | ​ | ​ | ​ | $ | 8,078 | ​ | ​ | ​ | ​ | $ | 7,420 | ​ | ​ | ​ | ​ | $ | 12,261 | ​ | ​
Interest and penalties–end of period | ​ | ​ | ​ | ​ | 1,326 | ​ | ​ | ​ | ​ | ​ | 1,344 | ​ | ​ | ​ | ​ | ​ | 1,952 | ​ | ​
Total liabilities related to uncertain tax positions | ​ | ​ | ​ | $ | 9,404 | ​ | ​ | ​ | ​ | $ | 8,764 | ​ | ​ | ​ | ​ | $ | 14,213 | ​ | ​
​
We recognize interest and penalties associated with uncertain tax positions as a component of the provision for income taxes. We recognized interest and penalties of  $66, $(661) and $441 for 2015, 2014 and 2013, respectively. During 2016, we potentially will reverse $1,637 of uncertain tax positions as a result of the lapse of the statute of limitations, with a corresponding benefit to the provision for income taxes. During 2014, certain of our foreign subsidiaries reached a settlement regarding tax examinations, resulting in a $2,614 payment to the tax authorities, a $572 reduction in our provision for income taxes and a $2,215 reduction in previously unrecognized tax benefits. Income tax returns for the following periods are no longer subject to examination by the relevant tax authorities: • U.S. federal and significant states, through June 30, 2006; ​ • Brazil, through December 31, 2009; ​ • Israel, through June 30, 2009 for certain subsidiaries and through June 30, 2012 for certain subsidiaries.

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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 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 2: 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 Reference 3: 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 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 + Details
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