Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

ncome before income taxes consisted of the following for the years ended June 30:



(in thousands)	2016			2015			2014
(Loss) income before income taxes:
United States	$	(228,667	)	$	(323,299	)	$	59,160
International	30,096			(64,316		)	169,649
Total (loss) income before income taxes	$	(198,571	)	$	(387,615	)	$	228,809
Current income taxes:
Federal	$	(15,039	)	$	(9,328	)	$	15,108
State	454			816			896
International	31,570			40,433			27,488
Total current income taxes	16,985			31,921			43,492
Deferred income taxes:
Federal	$	6,786		$	(38,943	)	$	10,157
State	8,407			(8,680		)	(62		)
International	(6,865		)	(952		)	13,024
Total deferred income taxes:	8,328			(48,575		)	23,119
Provision (benefit) for income taxes	$	25,313		$	(16,654	)	$	66,611
Effective tax rate	(12.7		)%	4.3		%	29.1		%

Reconciliation of Income Taxes and the Provision for Income Taxes

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:



(in thousands)	2016			2015			2014
Income taxes at U.S. statutory rate	$	(69,500	)	$	(135,665	)	$	80,083
State income taxes, net of federal tax benefits	859			(1,748		)	1,593
U.S. income taxes provided on international income	2,364			3,679			2,423
Combined tax effects of international income	(25,469		)	(21,560		)	(22,580		)
Impact of goodwill impairment charges	6,439			134,657			—
Impact of divestiture	27,790			—			—
Change in valuation allowance and other uncertain tax positions	84,530			1,530			(2,603		)
Impact of domestic production activities deduction	(2,072		)	—			(942		)
Research and development credit	(4,351		)	(3,087		)	(1,385		)
Change in permanent reinvestment assertion	3,659			2,945			7,170
Other	1,064			2,595			2,852
Provision (benefit) for income taxes	$	25,313		$	(16,654	)	$	66,611

Components of Net Deferred Tax Liabilities and Assets

The components of net deferred tax assets and (liabilities) were as follows at June 30:



(in thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	77,198		$	47,289
Inventory valuation and reserves	18,865			18,023
Pension benefits	42,432			23,559
Other postretirement benefits	7,111			7,359
Accrued employee benefits	17,069			23,674
Other accrued liabilities	9,229			18,210
Hedging activities	5,507			4,354
Tax credits and other carryforwards	30,733			13,815
Intangible assets	21,575			—
Other	—			12,028
Total	229,719			168,311
Valuation allowance	(122,699		)	(16,771		)
Total deferred tax assets	$	107,020		$	151,540
Deferred tax liabilities:
Tax depreciation in excess of book	$	83,412		$	102,480
Intangible assets	—			18,688
Other	149			—
Total deferred tax liabilities	$	83,561		$	121,168
Total net deferred tax assets (liabilities)	$	23,459		$	30,372

Reconciliation of Unrecognized Tax Benefits Excluding Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30:



(in thousands)	2016			2015			2014
Balance at beginning of year	$	14,619		$	20,366		$	26,798
Increases for tax positions of prior years	1,197			—			1,461
Decreases for tax positions of prior years	—			(3,188		)	(6,982		)
Increases for tax positions related to the current year	—			—			116
Decreases related to settlement with taxing authority	(11,942		)	(348		)	(2,161		)
Decreases related to lapse of statute of limitations	(667		)	(398		)	—
Foreign currency translation	(101		)	(1,813		)	1,134
Balance at end of year	$	3,106		$	14,619		$	20,366