Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

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



(in thousands)	2020			2019			2018
Income (loss) before income taxes:
United States	$	(76,107	)	$	60,756		$	57,109
International	78,067			250,479			217,932
Total income before income taxes	$	1,960		$	311,235		$	275,041
Current income taxes:
Federal	$	(3,558	)	$	5,679		$	3,755
State	905			321			(816		)
International	33,559			54,553			44,127
Total current income taxes	30,906			60,553			47,066
Deferred income taxes:
Federal	$	(9,113	)	$	(3,606	)	$	1,121
State	724			45			3,552
International	(15,510		)	6,367			18,242
Total deferred income taxes:	(23,899		)	2,806			22,915
Provision for income taxes	$	7,007		$	63,359		$	69,981
Effective tax rate	357.5		%	20.4		%	25.4		%

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)	2020			2019			2018
Income taxes at U.S. statutory rate	$	412		$	65,359		$	77,286
State income taxes, net of federal tax benefit	1,283			289			2,975
U.S. income taxes provided on international income	12,422			7,347			1,010
Combined tax effects of international income	10,583			162			(9,333		)
Impact of goodwill impairment charges	5,651			—			—
Change in valuation allowance and other uncertain tax positions	755			(1,473		)	(90,817		)
U.S. research and development credit	(4,093		)	(3,911		)	(3,141		)
Change in permanent reinvestment assertion	—			6,093			—
Combined effects of U.S. tax reform	—			(9,280		)	86,044
Combined effects of Swiss tax reform	(14,500		)	—			—
Combined effects of the U.S. CARES Act	(6,913		)	—			—
Adjustment to deferred tax charges on intra-entity transfers	—			—			5,297
Other	1,407			(1,227		)	660
Provision for income taxes	$	7,007		$	63,359		$	69,981

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)	2020			2019
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	31,891		$	28,886
Inventory valuation and reserves	8,220			8,230
Pension benefits	19,608			21,445
Other postretirement benefits	4,110			4,752
Accrued employee benefits	11,650			16,029
Operating lease liabilities	11,889			—
Other accrued liabilities	7,310			7,758
Tax credits and other carryforwards	21,048			4,733
Intangible assets	10,531			—
Other	364			2,813
Total	126,621			94,646
Valuation allowance	(16,654		)	(14,614		)
Total deferred tax assets	$	109,967		$	80,032
Deferred tax liabilities:
Tax depreciation in excess of book	$	67,411		$	74,645
Operating lease right-of-use assets	11,715			—
Intangible assets	—			4,259
Unremitted earnings not permanently reinvested	5,855			3,943
Total deferred tax liabilities	$	84,981		$	82,847
Total net deferred tax assets (liabilities)	$	24,986		$	(2,815	)

Reconciliation of Unrecognized Tax Benefits Excluding Interest

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



(in thousands)	2020			2019			2018
Balance at beginning of year	$	8,952		$	5,775		$	2,632
Increases for tax positions of prior years	—			7,384			3,409
Decreases related to settlement with taxing authority	—			(3,765		)	—
Decreases related to lapse of statute of limitations	(214		)	(324		)	(289		)
Foreign currency translation	(58		)	(118		)	23
Balance at end of year	$	8,680		$	8,952		$	5,775