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Income Taxes | 12 Months Ended
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Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | 11. Income Taxes Income (loss) before income taxes was:
For the Years Ended June 30 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Domestic |  |  |  | $ | 2,027 |  |  |  |  | $ | 15,937 |  |  |  |  | $ | (26,226) |  |
Foreign |  |  |  |  | 74,734 |  |  |  |  |  | 62,826 |  |  |  |  |  | 32,534 |  |
Income (loss) before income taxes |  |  |  | $ | 76,761 |  |  |  |  | $ | 78,763 |  |  |  |  | $ | 6,308 |  |
Components of the provision for income taxes were:
For the Years Ended June 30 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Current provision (benefit): |  |  |  |
Federal |  |  |  | $ | (2,889) |  |  |  |  | $ | (468) |  |  |  |  | $ | (673) |  |
State and local |  |  |  |  | (474) |  |  |  |  |  | (48) |  |  |  |  |  | (268) |  |
Foreign |  |  |  |  | 20,168 |  |  |  |  |  | 13,868 |  |  |  |  |  | 9,087 |  |
Total current provision |  |  |  |  | 16,805 |  |  |  |  |  | 13,352 |  |  |  |  |  | 8,146 |  |
Deferred provision (benefit): |  |  |  |
Federal |  |  |  |  | (2,985) |  |  |  |  |  | 6,157 |  |  |  |  |  | (1,632) |  |
State and local |  |  |  |  | 911 |  |  |  |  |  | 1,311 |  |  |  |  |  | (1,877) |  |
Foreign |  |  |  |  | (989) |  |  |  |  |  | 5,933 |  |  |  |  |  | 966 |  |
Change in valuation allowance–domestic |  |  |  |  | (19,588) |  |  |  |  |  | (7,468) |  |  |  |  |  | 3,509 |  |
Change in valuation allowance–foreign |  |  |  |  | (121) |  |  |  |  |  | (802) |  |  |  |  |  | 323 |  |
Total deferred provision |  |  |  |  | (22,772) |  |  |  |  |  | 5,131 |  |  |  |  |  | 1,289 |  |
Provision (benefit) for income taxes |  |  |  | $ | (5,967) |  |  |  |  | $ | 18,483 |  |  |  |  | $ | 9,435 |  |
During 2016, based on continued domestic profitability, we concluded that it was more likely than not that the value of domestic deferred tax assets would be realized, and it was no longer necessary to maintain a valuation allowance. Accordingly we released our domestic valuation allowance. We continue to maintain valuation allowances against deferred tax assets related to certain foreign jurisdictions. We review the realizability of our deferred tax assets when circumstances indicate a review is required. During 2016, we elected early application of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. Under the standard, the 2016 provision (benefit) for income taxes includes $3,520 of deferred income tax benefit arising from the exercise of employee stock options. Reconciliations of the federal statutory rate to the Company’s effective tax rate were:
For the Years Ended June 30 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Federal income tax rate |  |  |  |  | 35.0% |  |  |  |  |  | 35.0% |  |  |  |  |  | 35.0% |  |
State and local taxes, net of federal benefit |  |  |  |  | 0.2 |  |  |  |  |  | 0.2 |  |  |  |  |  | (0.9) |  |
Change in federal valuation allowance |  |  |  |  | (27.8) |  |  |  |  |  | (7.8) |  |  |  |  |  | 43.6 |  |
Foreign income tax rates and change in foreign valuation allowance |  |  |  |  | (5.5) |  |  |  |  |  | (2.2) |  |  |  |  |  | (67.2) |  |
Foreign withholding tax |  |  |  |  | 0.1 |  |  |  |  |  | 0.3 |  |  |  |  |  | 36.5 |  |
Foreign incentive tax rates |  |  |  |  | (4.5) |  |  |  |  |  | (4.1) |  |  |  |  |  | (30.1) |  |
Domestic tax on foreign income |  |  |  |  | 2.7 |  |  |  |  |  | 0.9 |  |  |  |  |  | 13.6 |  |
Change in liability for uncertain tax positions |  |  |  |  | (4.9) |  |  |  |  |  | 1.5 |  |  |  |  |  | (34.9) |  |
Repatriation of foreign earnings |  |  |  |  | — |  |  |  |  |  | — |  |  |  |  |  | 138.7 |  |
Permanent items |  |  |  |  | 1.5 |  |  |  |  |  | (0.6) |  |  |  |  |  | 18.8 |  |
Exercise of employee stock options |  |  |  |  | (4.6) |  |  |  |  |  | — |  |  |  |  |  | — |  |
Other |  |  |  |  | — |  |  |  |  |  | 0.3 |  |  |  |  |  | (3.5) |  |
Effective tax rate |  |  |  |  | (7.8)% |  |  |  |  |  | 23.5% |  |  |  |  |  | 149.6% |  |
We have not provided for United States or additional foreign taxes on approximately $176,281 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 |  |  | 2016 |  |  | 2015 |
Deferred tax assets: |  |  |
Employee related accruals |  |  |  | $ | 12,603 |  |  |  |  | $ | 9,778 |  |
Inventory |  |  |  |  | 2,573 |  |  |  |  |  | 3,889 |  |
Environmental remediation |  |  |  |  | 2,208 |  |  |  |  |  | 2,155 |  |
Net operating loss carry forwards–domestic |  |  |  |  | 13,768 |  |  |  |  |  | 13,641 |  |
Net operating loss carry forwards–foreign |  |  |  |  | 4,346 |  |  |  |  |  | 4,127 |  |
Other |  |  |  |  | 7,566 |  |  |  |  |  | 5,418 |  |
|  |  |  |  | 43,064 |  |  |  |  |  | 39,008 |  |
Valuation allowance |  |  |  |  | (4,614) |  |  |  |  |  | (26,622) |  |
|  |  |  |  | 38,450 |  |  |  |  |  | 12,386 |  |
Deferred tax liabilities: |  |  |
Property, plant and equipment and intangible assets |  |  |  |  | (9,725) |  |  |  |  |  | (11,088) |  |
Other |  |  |  |  | (1,956) |  |  |  |  |  | (461) |  |
|  |  |  |  | (11,681) |  |  |  |  |  | (11,549) |  |
Net deferred tax asset |  |  |  | $ | 26,769 |  |  |  |  | $ | 837 |  |
Deferred taxes are included in the consolidated balance sheets as follows:
As of June 30 |  |  | 2016 |  |  | 2015 |
Prepaid expenses and other current assets |  |  |  | $ | — |  |  |  |  | $ | 7,456 |  |
Other assets |  |  |  |  | 28,019 |  |  |  |  |  | 222 |  |
Other liabilities |  |  |  |  | (1,250) |  |  |  |  |  | (6,841) |  |
|  |  |  | $ | 26,769 |  |  |  |  | $ | 837 |  |
During 2016, we elected early application of ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which requires classification of all deferred tax assets and liabilities as non-current in the consolidated balance sheet. We applied the guidance prospectively; periods prior to December 31, 2015 were not adjusted. The valuation allowances for deferred tax assets were:
As of June 30 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Balance at beginning of period |  |  |  | $ | 26,622 |  |  |  |  | $ | 32,892 |  |  |  |  | $ | 27,753 |  |
Provision for income taxes |  |  |  |  | (19,709) |  |  |  |  |  | (6,270) |  |  |  |  |  | 5,139 |  |
Net operating loss utilization |  |  |  |  | (2,299) |  |  |  |  |  | — |  |  |  |  |  | — |  |
Balance at end of period |  |  |  | $ | 4,614 |  |  |  |  | $ | 26,622 |  |  |  |  | $ | 32,892 |  |
The valuation allowance for deferred tax assets as of June 30, 2016, is solely related to foreign jurisdictions. The Company has approximately $33,302 of domestic federal net operating loss carry forwards that expire in 2028 through 2035 and approximately $42,895 of state net operating loss carry forwards that will expire in 2016 through 2035. In addition, the Company has approximately $13,243 of foreign net operating loss carry forwards, most of which are in jurisdictions that have no expiration. As tax law is complex and often subject to varied interpretations, it is uncertain whether some of our tax positions will be sustained upon audit. Tax liabilities associated with uncertain tax positions represent unrecognized tax benefits, which arise when the estimated benefit recorded in our financial statements differs from the amounts taken or expected to be taken in a tax return because of the uncertainties described above. Substantially all of these unrecognized tax benefits, if recognized, would impact our effective income tax rate. The reconciliation of the beginning and ending amounts of gross unrecognized tax benefits follows:
As of June 30 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Unrecognized tax benefits–beginning of period |  |  |  | $ | 8,078 |  |  |  |  | $ | 7,420 |  |  |  |  | $ | 12,261 |  |
Tax position changes–prior periods |  |  |  |  | 188 |  |  |  |  |  | (24) |  |  |  |  |  | 1,276 |  |
Tax position changes–current period |  |  |  |  | 472 |  |  |  |  |  | 1,945 |  |  |  |  |  | 1,036 |  |
Settlements with tax authorities |  |  |  |  | — |  |  |  |  |  | — |  |  |  |  |  | (2,215) |  |
Lapse of statute of limitations |  |  |  |  | (3,700) |  |  |  |  |  | (907) |  |  |  |  |  | (5,157) |  |
Translation |  |  |  |  | (92) |  |  |  |  |  | (356) |  |  |  |  |  | 219 |  |
Unrecognized tax benefits–end of period |  |  |  |  | 4,946 |  |  |  |  |  | 8,078 |  |  |  |  |  | 7,420 |  |
Interest and penalties–end of period |  |  |  |  | 308 |  |  |  |  |  | 1,326 |  |  |  |  |  | 1,344 |  |
Total liabilities related to uncertain tax positions |  |  |  | $ | 5,254 |  |  |  |  | $ | 9,404 |  |  |  |  | $ | 8,764 |  |
We recognize interest and penalties associated with uncertain tax positions as a component of the provision for income taxes. We recognized interest and penalties expense (income) of $(980), $66 and $(661) for 2016, 2015 and 2014, respectively. During 2017, we potentially will reverse $658 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 2016, one of our international subsidiaries was subject to an income tax examination for the years 2013 and 2014. The examination is ongoing and is expected to be completed during 2017. We are unable to determine the impact, if any, of the results of the examination on 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, 2010; • Israel, through June 30, 2011 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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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