Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income (loss) before income taxes consisted of the following for the years ended June 30:



(in thousands)	2017			2016			2015
Income (loss) before income taxes:
United States	$	(23,055	)	$	(228,667	)	$	(323,299	)
International	104,930			30,096			(64,316		)
Total income (loss) before income taxes	$	81,875		$	(198,571	)	$	(387,615	)
Current income taxes:
Federal	$	(1,455	)	$	(15,039	)	$	(9,328	)
State	172			454			816
International	24,911			31,570			40,433
Total current income taxes	23,628			16,985			31,921
Deferred income taxes:
Federal	$	298		$	6,786		$	(38,943	)
State	(867		)	8,407			(8,680		)
International	6,836			(6,865		)	(952		)
Total deferred income taxes:	6,267			8,328			(48,575		)
Provision (benefit) for income taxes	$	29,895		$	25,313		$	(16,654	)
Effective tax rate	36.5		%	(12.7		)%	4.3		%

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)	2017			2016			2015
Income taxes at U.S. statutory rate	$	28,656		$	(69,500	)	$	(135,665	)
State income taxes, net of federal tax benefits	(306		)	859			(1,748		)
U.S. income taxes provided on international income	10,273			2,364			3,679
Combined tax effects of international income	(11,530		)	(25,469		)	(21,560		)
Impact of goodwill impairment charges	—			6,439			134,657
Impact of divestiture	—			27,790			—
Change in valuation allowance and other uncertain tax positions	5,163			84,530			1,530
Impact of domestic production activities deduction	—			(2,072		)	—
Research and development credit	(1,895		)	(4,351		)	(3,087		)
Change in permanent reinvestment assertion	—			3,659			2,945
Other	(466		)	1,064			2,595
Provision (benefit) for income taxes	$	29,895		$	25,313		$	(16,654	)

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)	2017			2016
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	85,659		$	77,198
Inventory valuation and reserves	20,428			18,865
Pension benefits	24,824			42,432
Other postretirement benefits	5,959			7,111
Accrued employee benefits	11,234			17,069
Other accrued liabilities	8,609			9,229
Hedging activities	5,409			5,507
Tax credits and other carryforwards	41,039			30,733
Intangible assets	14,947			21,575
Total	218,108			229,719
Valuation allowance	(116,770		)	(122,699		)
Total deferred tax assets	$	101,338		$	107,020
Deferred tax liabilities:
Tax depreciation in excess of book	$	83,258		$	83,412
Other	4,614			149
Total deferred tax liabilities	$	87,872		$	83,561
Total net deferred tax assets	$	13,466		$	23,459

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)	2017			2016			2015
Balance at beginning of year	$	3,106		$	14,619		$	20,366
Increases for tax positions of prior years	—			1,197			—
Decreases for tax positions of prior years	—			—			(3,188		)
Decreases related to settlement with taxing authority	(231		)	(11,942		)	(348		)
Decreases related to lapse of statute of limitations	(184		)	(667		)	(398		)
Foreign currency translation	(59		)	(101		)	(1,813		)
Balance at end of year	$	2,632		$	3,106		$	14,619