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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax Expense (Benefit)

Income tax expense (benefit) consists of:

	Fiscal Year Ended June 30,
	2019				2018				2017
	(in thousands)
Current:
Federal	$	17,742			$	38,263			$	31,149
State	4,404				3,503				2,615
Foreign	(157		)		9,203				269
Total current	21,989				50,969				34,033
Deferred:
Federal	(4,328		)		(9,987		)		(3,832		)
State	(806		)		(1,962		)		(397		)
Foreign	3,456				(11,248		)		2,445
Total deferred	(1,678		)		(23,197		)		(1,784		)
Provision for income taxes	$	20,311			$	27,772			$	32,249

Reconciliation of U.S.Federal Income Tax Expense

A reconciliation of the U.S. Federal income tax expense at a statutory rate of 21% for the fiscal year ended June 30, 2019, a blended statutory rate of 28.0% for the fiscal year ended June 30, 2018 and a statutory rate of 35% for the fiscal year ended and June 30, 2017 to actual income tax expense is as follows:

	Fiscal Year Ended June 30,
	2019				2018				2017
	(in thousands)
U.S. statutory rate	21.0		%		28.0		%		35.0		%
U.S. Federal income tax at statutory rate	$	16,361			$	17,094			$	35,524
Increase (decrease) in income taxes due to:
State and local income taxes, net of Federal benefit	2,727				1,883				1,729
Tax credits	(1,808		)		(1,825		)		(1,430		)
Valuation allowance	2,142				1,530				444
Effect of foreign operations, net	2,103				(1,396		)		(1,477		)
Stock compensation	35				1,049				(61		)
Capitalized acquisition costs	69				48				231
Nontaxable income	(828		)		(9		)		(4,437		)
Disallowed interest	1,600				1,888				2,011
Net favorable recovery	(2,670		)		—				—
Other	1,085				(1,438		)		(285		)
U.S. Tax Reform transition tax	(827		)		9,609				—
U.S. Tax Reform impact of rate change on deferred taxes	—				(1,615		)		—
Belgium Tax Reform impact of rate change on deferred taxes	—				1,040				—
Other jurisdictions impact of rate change on deferred taxes	(43		)		(86		)		—
Global intangible low taxed income (GILTI) tax	365				—				—
Provision for income taxes	$	20,311			$	27,772			$	32,249

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:

	June 30,
	2019				2018
	(in thousands)
Deferred tax assets derived from:
Allowance for accounts receivable	$	10,681			$	12,874
Inventories	4,561				4,060
Nondeductible accrued expenses	9,848				7,426
Net operating loss carryforwards	6,241				5,350
Tax credits	6,530				5,795
Timing of amortization deduction from goodwill	6,406				5,756
Deferred compensation	6,396				5,696
Stock compensation	3,034				2,809
Timing of amortization deduction from intangible assets	3,110				2,510
Total deferred tax assets	56,807				52,276
Valuation allowance	(7,238		)		(5,098		)
Total deferred tax assets, net of allowance	49,569				47,178
Deferred tax liabilities derived from:
Timing of depreciation and other deductions from building and equipment	(6,719		)		(7,468		)
Timing of amortization deduction from goodwill	(3,742		)		(1,782		)
Timing of amortization deduction from intangible assets	(15,779		)		(17,498		)
Total deferred tax liabilities	(26,240		)		(26,748		)
Net deferred tax assets	$	23,329			$	20,430

Components of Pretax Earnings

The components of pretax earnings are as follows:

	Fiscal Year Ended June 30,
	2019				2018				2017
	(in thousands)
Domestic	$	67,426			$	66,416			$	79,871
Foreign	10,482				(5,491		)		21,624
Worldwide pretax earnings	$	77,908			$	60,925			$	101,495

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	June 30,
	2019				2018				2017
	(in thousands)
Beginning Balance	$	2,053			$	2,176			$	2,148
Additions based on tax positions related to the current year	69				157				174
Additions for tax positions of prior years	—				—				—
Reduction for tax positions of prior years	(888		)		(280		)		(146		)
Ending Balance	$	1,234			$	2,053			$	2,176

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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