XML 48 R19.htm IDEA: XBRL DOCUMENT ﻿
v2.3.0.11

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2011
Income Taxes |
Income Taxes |
(12) | Income Taxes
Income tax expense (benefit) consists of:
|  |  | 00000000 |  |  |  | 00000000 |  |  |  | 00000000 |
|  | Fiscal Year Ended June 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (in thousands) |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 34,782 |  |  | $ | 27,749 |  |  | $ | 20,444 |
State |  |  | 248 |  |  |  | 1,104 |  |  |  | (314 | )
Foreign |  |  | 5,008 |  |  |  | 2,922 |  |  |  | 5,626 |
Total current |  |  | 40,038 |  |  |  | 31,775 |  |  |  | 25,756 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (168 | ) |  |  | (4,410 | ) |  |  | 2,253 |
State |  |  | (9 | ) |  |  | (323 | ) |  |  | 191 |
Foreign |  |  | (1,498 | ) |  |  | (113 | ) |  |  | (234 | )
Total deferred |  |  | (1,675 | ) |  |  | (4,846 | ) |  |  | 2,210 |
Provision for income taxes |  | $ | 38,363 |  |  | $ | 26,929 |  |  | $ | 27,966 |
A reconciliation of the U.S. Federal income tax expense at a statutory rate of 35% to actual income tax expense, excluding any other taxes related to extraordinary gain is as follows:
|  |  | 00000000 |  |  |  | 00000000 |  |  |  | 00000000 |
|  | Fiscal Year Ended June 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (in thousands) |
U.S. Federal income tax at statutory rate |  | $ | 39,160 |  |  | $ | 26,509 |  |  | $ | 26,479 |
Increase (decrease) in income taxes due to: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of Federal benefit |  |  | 625 |  |  |  | 935 |  |  |  | (81 | )
Tax credits |  |  | (312 | ) |  |  | (633 | ) |  |  | (175 | )
Valuation allowance |  |  | (195 | ) |  |  | (128 | ) |  |  | 21 |
Effect of foreign operations, net |  |  | (2,054 | ) |  |  | (1,342 | ) |  |  | (162 | )
Stock compensation |  |  | 239 |  |  |  | 580 |  |  |  | 548 |
Other |  |  | 900 |  |  |  | 1,008 |  |  |  | 1,336 |
Provision for income taxes |  | $ | 38,363 |  |  | $ | 26,929 |  |  | $ | 27,966 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:
|  |  | 00000000 |  |  |  | 00000000 |
|  | June 30, |
|  | 2011 |  |  | 2010 |
|  | (in thousands) |
Deferred tax assets derived from: |  |  |  |  |  |  |  |
Allowance for accounts receivable |  | $ | 2,857 |  |  | $ | 4,164 |
Inventories |  |  | 11,310 |  |  |  | 7,891 |
Nondeductible accrued expenses |  |  | 2,204 |  |  |  | 974 |
Net operating loss carryforwards |  |  | 452 |  |  |  | 290 |
Tax credits |  |  | 241 |  |  |  | 643 |
Deferred compensation |  |  | 4,822 |  |  |  | 3,132 |
Stock compensation |  |  | 2,868 |  |  |  | 4,857 |
Total deferred tax assets |  |  | 24,754 |  |  |  | 21,951 |
Valuation allowance |  |  | (517 | ) |  |  | (712 | )
Total deferred tax assets |  |  | 24,237 |  |  |  | 21,239 |
Deferred tax liabilities derived from: |  |  |  |  |  |  |  |
Timing of amortization deduction from intangible assets |  |  | (2,717 | ) |  |  | (2,317 | )
Timing of depreciation and other deductions for building and equipment |  |  | (238 | ) |  |  | (459 | )
Total deferred tax liabilities |  |  | (2,955 | ) |  |  | (2,776 | )
Net deferred tax assets |  | $ | 21,282 |  |  | $ | 18,463 |
The components of pretax earnings are as follows:
|  |  | 0000000000 |  |  |  | 0000000000 |  |  |  | 0000000000 |
|  | Fiscal Year Ended June 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (in thousands) |
Domestic |  | $ | 96,436 |  |  | $ | 65,566 |  |  | $ | 59,957 |
Foreign |  |  | 15,450 |  |  |  | 10,175 |  |  |  | 15,697 |
Worldwide pretax earnings |  | $ | 111,886 |  |  | $ | 75,741 |  |  | $ | 75,654 |
At June 30, 2011, the Company has: (i) gross net operating loss carry forwards of approximately $0.1 million for U.S. Federal income tax purposes that will begin to expire in 2020; (ii) gross net operating loss carry forwards of approximately $0.9 million for state income tax purposes, (iii) foreign gross net operating loss carry forwards of approximately $1.2 million and (iv) state income tax credit carry forwards of approximately $0.1 million that will begin to expire in 2025. As of June 30, 2011, the Company has established a full valuation reserve against the foreign net operating loss carry forwards, and, for both periods, a valuation allowance of less than $0.1 million for state net operating losses where it was determined that, in accordance with ASC 740, it is more likely than not that they cannot be utilized. The Company has not provided U.S. income taxes for undistributed earnings of foreign subsidiaries that are considered to be retained indefinitely for reinvestment. The distribution of these earnings would result in additional foreign withholding taxes and additional U.S. federal income taxes to the extent they are not offset by foreign tax credits. It has been the practice of the Company to reinvest those earnings in the business outside the United States. These undistributed earnings amounted to approximately $57.2 million at June 30, 2011. If these earnings were remitted to the U.S. they would be subject to income tax. The tax, after foreign tax credits, is estimated to be approximately $8.2 million. As of June 30, 2011, the Company had gross unrecognized tax benefits of $2.1 million, $1.8 million of which, if recognized, would affect the effective tax rate. This reflects no change on a net basis over the prior fiscal year. The Company does not expect that the total amounts of unrecognized tax benefits will significantly increase or decrease within the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  |  | 0000000000 |  |  |  | 0000000000 |  |  |  | 0000000000 |
|  | 2011 |  |  | 2010 |  |  | 2009 |
|  | (in thousands) |
Beginning Balance |  | $ | 2,257 |  |  | $ | 2,309 |  |  | $ | 1,976 |
Additions based on tax positions related to the current year |  |  | 252 |  |  |  | - |  |  |  | 173 |
Additions for tax positions of prior years |  |  | 155 |  |  |  | 307 |  |  |  | 182 |
Reduction for tax positions of prior years |  |  | (559 | ) |  |  | (359 | ) |  |  | (22 | )
Settlements |  |  | - |  |  |  | - |  |  |  | - |
Ending Balance |  | $ | 2,105 |  |  | $ | 2,257 |  |  | $ | 2,309 |
The Company conducts business globally and, as a result, one or more of its subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in countries in which it operates. With few exceptions, the Company is no longer subject to state and local, or non-U.S. income tax examinations by tax authorities for the years before 2007. The Company's continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. As of June 30, 2011, the Company had approximately $0.9 million accrued for interest and penalties, of which $0.2 million was a current period expense.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_IncomeTaxExpenseBenefitAbstract
Namespace Prefix: | us-gaap
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration