Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Components of income before income taxes

The components of income before income taxes are as follows:



Year Ended June 30,	2019			2018		2017
U.S.	$	204,462		$	186,874	$	154,472
Foreign	(9,981		)	17,844		12,494
Income before income taxes	$	194,481		$	204,718	$	166,966

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes consists of:



Year Ended June 30,	2019			2018			2017
Current:
Federal	$	34,437		$	48,131		$	26,456
State and local	7,965			8,038			4,692
Foreign	5,718			5,309			4,760
Total current	48,120			61,478			35,908
Deferred:
Federal	6,265			5,955			852
State and local	1,947			(586		)	535
Foreign	(5,844		)	(3,754		)	(4,239		)
Total deferred	2,368			1,615			(2,852		)
Total	$	50,488		$	63,093		$	33,056

Reconciliations of federal statutory income tax rate and Company's effective income tax rate

The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:



Year Ended June 30,	2019		2018		2017
Statutory income tax rate	21.0	%	28.1	%	35.0	%
Effects of:
State and local taxes	4.4		3.1		2.8
U.S. federal tax reform	(0.3	)	3.1		—
Worthless stock deduction	—		—		(13.9	)
Stock compensation	(0.5	)	(0.4	)	(1.4	)
GILTI/FDII	0.7		—		—
U.S. tax on foreign income, net	0.5		—		—
Impact of foreign operations	(1.8	)	(1.3	)	(2.3	)
Deductible dividend	(0.2	)	(0.3	)	(0.4	)
Valuation allowance	2.9		(0.9	)	0.3
Other, net	(0.7	)	(0.6	)	(0.3	)
Effective income tax rate	26.0	%	30.8	%	19.8	%

Components of the Company's net deferred tax assets

Significant components of the Company’s deferred tax assets and liabilities are as follows:



June 30,	2019			2018
Deferred tax assets:
Compensation liabilities not currently deductible	$	17,401		$	19,334
Other expenses and reserves not currently deductible	13,050			13,169
Goodwill and intangibles	2,398			3,197
Foreign tax credit	—			413
Net operating loss carryforwards	8,466			11,315
Hedging instrument	3,498			—
Other	1,173			199
Total deferred tax assets	45,986			47,627
Less: Valuation allowance	(5,597		)	(38		)
Deferred tax assets, net of valuation allowance	40,389			47,589
Deferred tax liabilities:
Inventories	(8,600		)	(8,196		)
Goodwill and intangibles	(75,504		)	(86,176		)
Depreciation and differences in property bases	(10,777		)	(9,294		)
Total deferred tax liabilities	(94,881		)	(103,666		)
Net deferred tax liabilities	$	(54,492	)	$	(56,077	)
Net deferred tax liabilities are classified as follows:
Other assets	$	3,859		$	2,103
Other liabilities	(58,351		)	(58,180		)
Net deferred tax liabilities	$	(54,492	)	$	(56,077	)

Reconciliation of the Company's total gross unrecognized income tax benefits

The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2019, 2018 and 2017:



Year Ended June 30,	2019			2018			2017
Unrecognized Income Tax Benefits at beginning of the year	$	3,988		$	3,533		$	2,915
Current year tax positions	105			143			574
Prior year tax positions	1,151			636			259
Expirations of statutes of limitations	(265		)	(324		)	(189		)
Settlements	—			—			(26		)
Unrecognized Income Tax Benefits at end of year	$	4,979		$	3,988		$	3,533