Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

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



(in thousands)	2019			2018			2017
Income (loss) before income taxes:
United States	$	60,756		$	57,109		$	(23,055	)
International	250,479			217,932			104,930
Total income before income taxes	$	311,235		$	275,041		$	81,875
Current income taxes:
Federal	$	5,679		$	3,755		$	(1,455	)
State	321			(816		)	172
International	54,553			44,127			24,911
Total current income taxes	60,553			47,066			23,628
Deferred income taxes:
Federal	$	(3,606	)	$	1,121		$	298
State	45			3,552			(867		)
International	6,367			18,242			6,836
Total deferred income taxes:	2,806			22,915			6,267
Provision for income taxes	$	63,359		$	69,981		$	29,895
Effective tax rate	20.4		%	25.4		%	36.5		%

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)	2019			2018			2017
Income taxes at U.S. statutory rate	$	65,359		$	77,286		$	28,656
State income taxes, net of federal tax benefit	289			2,975			(306		)
U.S. income taxes provided on international income	7,347			1,010			10,273
Combined tax effects of international income	162			(9,333		)	(11,530		)
Change in valuation allowance and other uncertain tax positions	(1,473		)	(90,817		)	5,163
U.S. research and development credit	(3,911		)	(3,141		)	(1,895		)
Change in permanent reinvestment assertion	6,093			—			—
Combined effects of U.S. tax reform	(9,280		)	86,044			—
Adjustment to deferred tax charges on intra-entity transfers	—			5,297			—
Other	(1,227		)	660			(466		)
Provision for income taxes	$	63,359		$	69,981		$	29,895

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)	2019			2018
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	28,886		$	39,884
Inventory valuation and reserves	8,230			10,023
Pension benefits	21,445			15,750
Other postretirement benefits	4,752			3,996
Accrued employee benefits	16,029			15,697
Other accrued liabilities	7,758			9,386
Tax credits and other carryforwards	4,733			644
Total	91,833			95,380
Valuation allowance	(14,614		)	(21,629		)
Total deferred tax assets	$	77,219		$	73,751
Deferred tax liabilities:
Tax depreciation in excess of book	$	74,645		$	77,106
Intangible assets	4,259			537
Other	1,130			6,084
Total deferred tax liabilities	$	80,034		$	83,727
Total net deferred tax liabilities	$	(2,815	)	$	(9,976	)

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)	2019			2018			2017
Balance at beginning of year	$	5,775		$	2,632		$	3,106
Increases for tax positions of prior years	7,384			3,409			—
Decreases related to settlement with taxing authority	(3,765		)	—			(231		)
Decreases related to lapse of statute of limitations	(324		)	(289		)	(184		)
Foreign currency translation	(118		)	23			(59		)
Balance at end of year	$	8,952		$	5,775		$	2,632