XML 59 R42.htm IDEA: XBRL DOCUMENT
v3.22.2.2

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Summary of Components of Income Before Taxes and Equity in Earnings of Equity-Method Investments | The components of income (loss) from continuing operations before income taxes and equity in net loss of equity-method investees were as follows:
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Domestic | $ | 24,541 |  |  | $ | 60,215 |  |  | $ | (29,339) |
Foreign | 78,950 |  |  | 48,578 |  |  | 63,167 |
Total | $ | 103,491 |  |  | $ | 108,793 |  |  | $ | 33,828 |
Summary of the Provision for Income Taxes | The provision for income taxes consisted of the following:
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | (197) |  |  | $ | 2,243 |  |  | $ | (44,595) |
State and local | 179 |  |  | 1,735 |  |  | 619 |
Foreign | 13,714 |  |  | 27,253 |  |  | 14,021 |
| 13,696 |  |  | 31,231 |  |  | (29,955) |
Deferred: |  |  |  |  |
Federal | 6,237 |  |  | 14,266 |  |  | 33,007 |
State and local | (463) |  |  | (10,064) |  |  | 3,414 |
Foreign | 3,246 |  |  | 5,660 |  |  | (261) |
| 9,020 |  |  | 9,862 |  |  | 36,160 |
Total | $ | 22,716 |  |  | $ | 41,093 |  |  | $ | 6,205 |
Reconciliation of Expected Income Taxes to Actual | The reconciliation of the U.S. federal statutory rate to the Company’s effective rate on income before provision for income taxes is as follows:
| Fiscal Year Ended June 30,
| 2022 |  | % |  | 2021 |  | % |  | 2020 |  | %
Expected United States federal income tax at statutory rate | $ | 21,733 |  |  | 21.0 | % |  | $ | 22,847 |  |  | 21.0 | % |  | $ | 7,104 |  |  | 21.0 | %
State income taxes, net of federal provision (benefit) | 1,227 |  |  | 1.2 | % |  | 1,150 |  |  | 1.1 | % |  | (668) |  |  | (1.9) | %
Foreign income at different rates | (576) |  |  | (0.6) | % |  | 4,756 |  |  | 4.4 | % |  | 382 |  |  | 1.1 | %
Impairment of intangible assets | — |  |  | — | % |  | 13,466 |  |  | 12.4 | % |  | — |  |  | — | %
Change in valuation allowance(a) | (220) |  |  | (0.2) | % |  | (5,921) |  |  | (5.4) | % |  | 4,499 |  |  | 13.3 | %
Change in reserves for uncertain tax positions | (997) |  |  | (1.0) | % |  | 1,971 |  |  | 1.8 | % |  | 7,925 |  |  | 23.4 | %
Change in foreign tax rate(b) | (341) |  |  | (0.3) | % |  | 1,840 |  |  | 1.7 | % |  | — |  |  | — | %
Loss on disposal of subsidiary |  |  | — | % |  | 1,073 |  |  | 1.0 | % |  | — |  |  | — | %
U.S. tax (benefit) on foreign earnings | 2,404 |  |  | 2.3 | % |  | (50) |  |  | (0.1) | % |  | 7,449 |  |  | 22.0 | %
CARES Act(c) |  |  | — | % |  | (1,116) |  |  | (1.0) | % |  | (25,668) |  |  | (75.9) | %
Other | (514) |  |  | (0.4) | % |  | 1,077 |  |  | 1.0 | % |  | 5,182 |  |  | 15.3 | %
Provision for income taxes | $ | 22,716 |  |  | 21.9 | % |  | $ | 41,093 |  |  | 37.8 | % |  | $ | 6,205 |  |  | 18.3 | %
(a) The Company estimated that it would utilize certain of its state tax loss carryovers in the year ended June 30, 2021. This positive evidence, in addition to other positive evidence, resulted in the Company releasing the valuation allowance on its state deferred assets of $9,774. Further, in fiscal 2021, there was a release of a valuation allowance of $1,600 related to Danival; an increase in the valuation allowance of $5,051 related to the UK rate change; and a valuation allowance increase of $402 related to capital leases. (b) In fiscal year 2021, the U.K. enacted into law a tax rate increase from 17% to 19% and on June 10, 2021, the U.K. enacted an increase in the corporate income tax rate to 25% effective April 1, 2023. The rate change impact in fiscal 2021 was primarily for the re-measurement of deferred tax liabilities on indefinite lived intangible assets. (c) In fiscal 2020, the Company carried back NOLs generated in the June 30, 2019 tax year for five years, resulting in an income tax benefit of $18,949. The $18,949 income tax benefit represents the federal rate differential between 35% and 21%. In addition, there was an indirect tax benefit of $6,719 related to discontinued operations due to the CARES Act. Accordingly, the gross benefit recorded under the CARES Act in fiscal 2020 was $25,668 prior to the reserve under ASC 740-10. In fiscal 2021, the Company received the full refund with interest, with the net adjustment resulting in a benefit of $1,116.
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following:
| June 30, 2022 |  | June 30, 2021
Noncurrent deferred tax assets (liabilities): |  |  |
Basis difference on inventory | $ | 6,395 |  |  | $ | 6,213 |
Reserves not currently deductible | 11,675 |  |  | 15,261 |
Basis difference on intangible assets | (119,109) |  |  | (70,482) |
Basis difference on property and equipment | (15,049) |  |  | (11,643) |
Other comprehensive income | (726) |  |  | 2,792 |
Net operating loss and tax credit carryforwards | 50,077 |  |  | 43,960 |
Stock-based compensation | 1,516 |  |  | 1,797 |
Unremitted earnings of foreign subsidiaries | (2,232) |  |  | (1,172) |
Operating lease liability | 25,423 |  |  | 14,165 |
Lease ROU assets | (23,905) |  |  | (12,971) |
Other | 7,782 |  |  | 7,048 |
Valuation allowances | (36,891) |  |  | (37,453) |
Noncurrent deferred tax liabilities, net(1) | $ | (95,044) |  |  | $ | (42,485) |
(1) Includes $0 and $154 of non-current deferred tax assets included within other assets on the June 30, 2022 and 2021 Consolidated Balance Sheets, respectively.
Summary of Changes in Valuation Allowances | The changes in valuation allowances against deferred income tax assets were as follows:
| Fiscal Year Ended June 30,
| 2022 |  | 2021
Balance at beginning of year | $ | 37,453 |  |  | $ | 41,941 |
Additions charged to income tax expense | 784 |  |  | 5,601 |
Reductions credited to income tax expense | (1,004) |  |  | (11,520) |
THWR purchase accounting | 1,743 |  |  | — |
Currency translation adjustments | (2,085) |  |  | 1,431 |
Balance at end of year | $ | 36,891 |  |  | $ | 37,453 |
Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity | Unrecognized tax benefits activity, including interest and penalties, is summarized below:
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
Balance at beginning of year | $ | 22,870 |  |  | $ | 20,899 |  |  | $ | 11,869 |
Additions based on tax positions related to the current year | 273 |  |  | 343 |  |  | 636 |
Additions based on tax positions related to prior years | 304 |  |  | 3,045 |  |  | 8,499 |
Reductions due to lapse in statute of limitations and settlements | (1,546) |  |  | (1,417) |  |  | (105) |
Balance at end of year | $ | 21,901 |  |  | $ | 22,870 |  |  | $ | 20,899 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration