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Income Taxes | 12 Months Ended
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Jun. 30, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income before income taxes and equity in earnings of equity-method investees were as follows:
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Domestic | $ | 157,492 |  |  | $ | 130,908 |  |  | $ | 111,255 |
Foreign | 50,102 |  |  | 22,914 |  |  | 22,973 |
Total | $ | 207,594 |  |  | $ | 153,822 |  |  | $ | 134,228 |
The provision for income taxes is presented below.
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |
Federal | $ | 46,722 |  |  | $ | 31,370 |  |  | $ | 28,983 |
State and local | 7,891 |  |  | 3,792 |  |  | 3,414 |
Foreign | 16,836 |  |  | 6,565 |  |  | 6,050 |
| 71,449 |  |  | 41,727 |  |  | 38,447 |
Deferred: |  |  |  |  |
Federal | 2,287 |  |  | (4,064 | ) |  | 3,963 |
State and local | 372 |  |  | (405 | ) |  | 493 |
Foreign | (4,009 | ) |  | (2,934 | ) |  | (1,749 | )
| (1,350 | ) |  | (7,403 | ) |  | 2,707 |
Total | $ | 70,099 |  |  | $ | 34,324 |  |  | $ | 41,154 |
Income taxes paid during the years ended June 30, 2014, 2013 and 2012 amounted to $47,339, $22,051 and $21,902, respectively. Reconciliations of expected income taxes at the U.S. federal statutory rate of 35% to the Company’s provision for income taxes for the fiscal years ended June 30 were as follows:
| 2014 |  | % |  | 2013 |  | % |  | 2012 |  | %
Expected U.S. federal income tax at statutory rate | $ | 72,659 |  |  | 35.0 | % |  | $ | 53,838 |  |  | 35.0 | % |  | $ | 46,980 |  |  | 35.0 | %
State income taxes, net of federal benefit | 5,371 |  |  | 2.6 | % |  | 3,278 |  |  | 2.1 | % |  | 3,267 |  |  | 2.4 | %
Domestic manufacturing deduction | (2,482 | ) |  | (1.2 | )% |  | (2,563 | ) |  | (1.7 | )% |  | (2,275 | ) |  | (1.7 | )%
Foreign income at different rates | (4,842 | ) |  | (2.3 | )% |  | (4,950 | ) |  | (3.2 | )% |  | (11,513 | ) |  | (8.6 | )%
Worthless stock deduction | — |  |  | — | % |  | (13,186 | ) |  | (8.6 | )% |  | — |  |  | — | %
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate | (3,739 | ) |  | (1.8 | )% |  | (2,288 | ) |  | (1.4 | )% |  | — |  |  | — | %
Contingent consideration expense reversal | — |  |  | — | % |  | — |  |  | — | % |  | 5,434 |  |  | 4.0 | %
Other | 3,132 |  |  | 1.5 | % |  | 195 |  |  | 0.1 | % |  | (739 | ) |  | (0.4 | )%
Provision for income taxes | $ | 70,099 |  |  | 33.8 | % |  | $ | 34,324 |  |  | 22.3 | % |  | $ | 41,154 |  |  | 30.7 | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of our deferred tax assets (liabilities) were as follows:
| June 30, 2014 |  | June 30, 2013
Current deferred tax assets: |  |  |
Basis difference on inventory | $ | 5,995 |  |  | $ | 5,604 |
Reserves not currently deductible | 17,365 |  |  | 11,941 |
Other | 420 |  |  | 171 |
Current deferred tax assets | 23,780 |  |  | 17,716 |
Noncurrent deferred tax assets/(liabilities): |  |  |
Basis difference on intangible assets | (143,478 | ) |  | (107,011 | )
Basis difference on property and equipment | (17,782 | ) |  | (11,236 | )
Other comprehensive income | (7,969 | ) |  | (9,056 | )
Net operating loss and tax credit carryforwards | 24,067 |  |  | 17,666 |
Stock based compensation | 6,526 |  |  | 5,354 |
Other | 27 |  |  | 344 |
Valuation allowances | (9,830 | ) |  | (10,456 | )
Noncurrent deferred tax liabilities, net | (148,439 | ) |  | (114,395 | )
Total net deferred tax liabilities | $ | (124,659 | ) |  | $ | (96,679 | )
We have U.S. foreign tax credit carryforwards of $448 at June 30, 2014 with various expiration dates through 2024. We have U.S. tax net operating losses available for carryforward at June 30, 2014 of $31,273 that were generated by certain subsidiaries prior to their acquisition and have expiration dates through 2033. The use of pre-acquisition operating losses is subject to limitations imposed by the Internal Revenue Code. We do not anticipate that these limitations will affect utilization of the carryforwards recorded prior to their expiration. We have deferred tax benefits related to carryforward losses in the United Kingdom of $7,688, against which full valuation allowances have been recorded. Prior to the acquisition of Daniels, the Company’s United Kingdom subsidiaries had recorded historical losses and had been affected by restructuring and other charges. These losses represented sufficient evidence for management to determine that a full valuation allowance for these carryforward losses was appropriate. Under current United Kingdom tax law, our carryforward losses have no expiration. If the Company is able to realize any of these carryforward losses in the future, the provision for income taxes will be reduced by a release of the corresponding valuation allowance. In addition, we also have deferred tax benefits for foreign net operating losses of $3,722 which are available to reduce future income tax liabilities in Belgium, the Netherlands and Germany. The Company believes it is more likely than not that a portion of these net operating losses will not be realized and as such, as of June 30, 2014, a partial valuation allowance of $2,226 has been established against these deferred tax assets. The changes in valuation allowances against deferred income tax assets were as follows:
| Fiscal Year ended June 30,
| 2014 |  | 2013
Balance at beginning of year | $ | 10,456 |  |  | $ | 11,183 |
Additions charged to income tax expense | 2,226 |  |  | 530 |
Reductions credited to income tax expense | (760 | ) |  | (1,690 | )
Net change from liquidations, tax rate changes and other | (3,036 | ) |  | 748 |
Currency translation adjustments | 944 |  |  | (315 | )
Balance at end of year | $ | 9,830 |  |  | $ | 10,456 |
As of June 30, 2014, the Company had approximately $81,050 of undistributed earnings of foreign subsidiaries for which taxes have not been provided as the Company has invested or expects to invest these undistributed earnings indefinitely. If in the future these earnings are repatriated to the U.S., or if the Company determines such earnings will be remitted in the foreseeable future, additional tax provisions would be required. Due to complexities in the tax laws and the assumptions that would have to be made, it is not practicable to estimate the amounts of income taxes that might be payable if some or all of such earnings were to be remitted. Unrecognized tax benefits, including interest and penalties, activity is summarized below:
| Fiscal Year ended June 30,
| 2014 |  | 2013 |  | 2012
Balance at beginning of year | $ | 2,507 |  |  | $ | 1,337 |  |  | $ | 1,472 |
Additions based on tax positions related to prior years | 750 |  |  | 574 |  |  | 15 |
Additions for acquired companies | — |  |  | 941 |  |  | 690 |
Reductions due to lapse in statute of limitations and settlements | (906 | ) |  | (345 | ) |  | (840 | )
Balance at end of year | $ | 2,351 |  |  | $ | 2,507 |  |  | $ | 1,337 |
At June 30, 2014, $1,285 represents the amount that would impact the effective tax rate in future periods if recognized. The Company records interest and penalties on tax uncertainties as a component of the provision for income taxes. The Company recognized $6, $268 and $(135) of interest and penalties related to the above unrecognized benefits within income tax expense for the fiscal years ended June 30, 2014, 2013 and 2012, respectively. The Company had accrued $76 and $420 for interest and penalties at the end of fiscal 2014 and 2013, respectively. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various U.S. state jurisdictions and several foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2011. The Company is no longer subject to tax examinations in the United Kingdom for years prior to 2011. Given the uncertainty regarding when tax authorities will complete their examinations and the possible outcomes of their examinations, a current estimate of the range of reasonably possible significant increases or decreases of income tax that may occur within the next twelve months cannot be made. During the fiscal year ended June 30, 2014, we recorded an increase in the reserve for unrecognized tax benefits of $550 related to a recent Internal Revenue Service examination of our fiscal 2010 and 2011 federal income tax returns, which was settled in the fourth quarter of fiscal 2014. The Company does not believe the ultimate outcome of other in-progress tax audits will not have a material impact on the Company’s consolidated financial statements.

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- 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 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: 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 5: 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 6: 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 + Details
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