Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

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



(in thousands)	2018			2017			2016
Income (loss) before income taxes:
United States	$	57,109		$	(23,055	)	$	(228,667	)
International	217,932			104,930			30,096
Total income (loss) before income taxes	$	275,041		$	81,875		$	(198,571	)
Current income taxes:
Federal	$	3,755		$	(1,455	)	$	(15,039	)
State	(816		)	172			454
International	44,127			24,911			31,570
Total current income taxes	47,066			23,628			16,985
Deferred income taxes:
Federal	$	1,121		$	298		$	6,786
State	3,552			(867		)	8,407
International	18,242			6,836			(6,865		)
Total deferred income taxes:	22,915			6,267			8,328
Provision for income taxes	$	69,981		$	29,895		$	25,313
Effective tax rate	25.4		%	36.5		%	(12.7		)%

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)	2018			2017			2016
Income taxes at U.S. statutory rate	$	77,286		$	28,656		$	(69,500	)
State income taxes, net of federal tax benefits	2,975			(306		)	859
U.S. income taxes provided on international income	1,010			10,273			2,364
Combined tax effects of international income	(9,333		)	(11,530		)	(25,469		)
Impact of goodwill impairment charges	—			—			6,439
Impact of divestiture	—			—			27,790
Change in valuation allowance and other uncertain tax positions	(90,817		)	5,163			84,530
Impact of domestic production activities deduction	—			—			(2,072		)
Research and development credit	(3,141		)	(1,895		)	(4,351		)
Change in permanent reinvestment assertion	—			—			3,659
Combined effects of tax reform	86,044			—			—
Adjustment to deferred tax charges on intra-entity transfers	5,297			—			—
Other	660			(466		)	1,064
Provision for income taxes	$	69,981		$	29,895		$	25,313

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)	2018			2017
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	39,884		$	81,920
Inventory valuation and reserves	10,023			20,428
Pension benefits	15,750			24,824
Other postretirement benefits	3,996			5,959
Accrued employee benefits	15,697			18,409
Other accrued liabilities	9,386			8,609
Hedging activities	1,477			5,409
Tax credits and other carryforwards	644			37,603
Intangible assets	—			14,947
Total	96,857			218,108
Valuation allowance	(21,629		)	(116,770		)
Total deferred tax assets	$	75,228		$	101,338
Deferred tax liabilities:
Tax depreciation in excess of book	$	77,106		$	83,258
Intangible assets	537			—
Other	7,561			4,614
Total deferred tax liabilities	$	85,204		$	87,872
Total net deferred tax assets	$	(9,976	)	$	13,466

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)	2018			2017			2016
Balance at beginning of year	$	2,632		$	3,106		$	14,619
Increases for tax positions of prior years	3,409			—			1,197
Decreases related to settlement with taxing authority	—			(231		)	(11,942		)
Decreases related to lapse of statute of limitations	(289		)	(184		)	(667		)
Foreign currency translation	23			(59		)	(101		)
Balance at end of year	$	5,775		$	2,632		$	3,106