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Income Taxes | 12 Months Ended
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Jun. 30, 2015
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,
| 2015 |  | 2014 |  | 2013
Domestic | $ | 176,898 |  |  | $ | 157,492 |  |  | $ | 130,908 |
Foreign | 38,392 |  |  | 50,102 |  |  | 22,914 |
Total | $ | 215,290 |  |  | $ | 207,594 |  |  | $ | 153,822 |
The provision for income taxes is presented below.
| Fiscal Year ended June 30,
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | 41,268 |  |  | $ | 46,722 |  |  | $ | 31,370 |
State and local | 8,237 |  |  | 7,891 |  |  | 3,792 |
Foreign | 9,981 |  |  | 16,836 |  |  | 6,565 |
| 59,486 |  |  | 71,449 |  |  | 41,727 |
Deferred: |  |  |  |  |
Federal | (10,191 | ) |  | 2,287 |  |  | (4,064 | )
State and local | (932 | ) |  | 372 |  |  | (405 | )
Foreign | (480 | ) |  | (4,009 | ) |  | (2,934 | )
| (11,603 | ) |  | (1,350 | ) |  | (7,403 | )
Total | $ | 47,883 |  |  | $ | 70,099 |  |  | $ | 34,324 |
Income taxes paid during the fiscal years ended June 30, 2015, 2014 and 2013 amounted to $47,317, $47,339 and $22,051, 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:
| 2015 |  | % |  | 2014 |  | % |  | 2013 |  | %
Expected U.S. federal income tax at statutory rate | $ | 75,352 |  |  | 35.0 | % |  | $ | 72,659 |  |  | 35.0 | % |  | $ | 53,838 |  |  | 35.0 | %
State income taxes, net of federal benefit | 4,834 |  |  | 2.2 | % |  | 5,371 |  |  | 2.6 | % |  | 3,278 |  |  | 2.1 | %
Domestic manufacturing deduction | (1,210 | ) |  | (0.6 | )% |  | (2,482 | ) |  | (1.2 | )% |  | (2,563 | ) |  | (1.7 | )%
Foreign income at different rates | (9,105 | ) |  | (4.2 | )% |  | (4,842 | ) |  | (2.3 | )% |  | (4,950 | ) |  | (3.2 | )%
Corporate tax reorganization | (20,670 | ) |  | (9.6 | )% |  | — |  |  | — | % |  | — |  |  | — | %
Non-taxable gains on acquisition of pre-existing ownership interests in HPPC and Empire | (2,890 | ) |  | (1.3 | )% |  | — |  |  | — | % |  | — |  |  | — | %
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 | )%
Other | 1,572 |  |  | 0.7 | % |  | 3,132 |  |  | 1.5 | % |  | 195 |  |  | 0.1 | %
Provision for income taxes | $ | 47,883 |  |  | 22.2 | % |  | $ | 70,099 |  |  | 33.8 | % |  | $ | 34,324 |  |  | 22.3 | %
The effective tax rate for the fiscal year ended June 30, 2015 includes an income tax benefit $20,670 resulting from an election made during the fiscal year to change the tax status of the Company’s Canadian subsidiary. 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, 2015 |  | June 30, 2014
Current deferred tax assets: |  |  |
Basis difference on inventory | $ | 8,106 |  |  | $ | 5,995 |
Reserves not currently deductible | 12,334 |  |  | 17,365 |
Other | 318 |  |  | 420 |
Current deferred tax assets | 20,758 |  |  | 23,780 |
Noncurrent deferred tax assets/(liabilities): |  |  |
Basis difference on intangible assets | (155,049 | ) |  | (143,478 | )
Basis difference on property and equipment | (21,067 | ) |  | (17,782 | )
Other comprehensive income | (1,217 | ) |  | (7,969 | )
Net operating loss and tax credit carryforwards | 31,996 |  |  | 24,067 |
Stock based compensation | 6,828 |  |  | 6,526 |
Other | 2,267 |  |  | 27 |
Valuation allowances | (9,055 | ) |  | (9,830 | )
Noncurrent deferred tax liabilities, net | (145,297 | ) |  | (148,439 | )
Total net deferred tax liabilities | $ | (124,539 | ) |  | $ | (124,659 | )
We have U.S. foreign tax credit carryforwards of $3,998 at June 30, 2015 with various expiration dates through 2025. We have U.S. tax net operating losses available for carryforward at June 30, 2015 of $42,880 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 foreign net operating losses, primarily in the United Kingdom and Germany, and to a lesser extent in Belgium, totaling $9,055. The losses in the United Kingdom were recorded prior to the acquisition of Daniels and in Germany were the result of certain factory start-up costs incurred in prior years for the Company’s plant-based beverage facility. These losses represented sufficient evidence to determine that a valuation allowance for these carryforward losses was appropriate. Under current tax law in these jurisdictions, 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. The changes in valuation allowances against deferred income tax assets were as follows:
| Fiscal Year ended June 30,
| 2015 |  | 2014
Balance at beginning of year | $ | 9,830 |  |  | $ | 10,456 |
Additions charged to income tax expense | 214 |  |  | 2,226 |
Reductions credited to income tax expense | — |  |  | (760 | )
Net change from liquidations, tax rate changes and other | — |  |  | (3,036 | )
Currency translation adjustments | (989 | ) |  | 944 |
Balance at end of year | $ | 9,055 |  |  | $ | 9,830 |
As of June 30, 2015, the Company had approximately $155,152 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,
| 2015 |  | 2014 |  | 2013
Balance at beginning of year | $ | 2,351 |  |  | $ | 2,507 |  |  | $ | 1,337 |
Additions based on tax positions related to the current year | 722 |  |  | 750 |  |  | 574 |
Additions for acquired companies | — |  |  | — |  |  | 941 |
Reductions due to lapse in statute of limitations and settlements | (753 | ) |  | (906 | ) |  | (345 | )
Balance at end of year | $ | 2,320 |  |  | $ | 2,351 |  |  | $ | 2,507 |
At June 30, 2015, $2,320 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 $10, $6 and $268 of interest and penalties related to the above unrecognized benefits within income tax expense for the fiscal years ended June 30, 2015, 2014 and 2013, respectively. The Company had accrued $86 and $76 for interest and penalties at the end of fiscal 2015 and 2014, 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 2012. The Company is no longer subject to tax examinations in the United Kingdom for years prior to 2012. 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. There are various tax audits currently ongoing, however the Company does not believe the ultimate outcome of such audits will have a material impact on the Company’s consolidated financial statements.

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