Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Earnings/(loss) from continuing operations before income taxes and discontinued operations

Earnings from operations before income taxes are as follows for fiscal 2019, 2018, and 2017:

	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018		2017
U.S. operations	$	36.1	$	13.3	$	5.0
Non-U.S. operations	124.2		138.7		130.6
	$	160.3	$	152.0	$	135.6

Provision/ (benefit) for income taxes

The provision /(benefit) for income taxes consists of the following for fiscal 2019, 2018, and 2017: 

	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018		2017
Current:
Federal	$	2.4	$	14.1	$	2.1
State and local	0.3		0.1		(0.4)
Non-U.S.	25.8		24.9		22.7
Total current	$	28.5	$	39.1	$	24.4
Deferred:
Federal	$	3.6	$	24.2	$	1.9
State and local	(11.6)		(1.0)		1.4
Non-U.S.	2.4		6.1		(1.9)
Total deferred	$	(5.6)	$	29.3	$	1.4
Total provision	$	22.9	$	68.4	$	25.8

Reconciliation of the provision/(benefit) based on the federal statutory income tax rate

A reconciliation of the provision/(benefit) starting from the tax computed at the federal statutory income tax rate to the tax computed at the Company’s effective income tax rate is as follows for the fiscal years ended 2019, 2018, and 2017:  

	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018		2017
Provision at U.S. federal statutory tax rate	$	33.7	$	42.7	$	47.4
State and local income taxes	(0.3)		(2.5)		(1.7)
Foreign tax rate differential	(3.0)		(15.4)		(25.7)
Global intangible low tax income	3.4		—		—
Other permanent items	4.9		2.7		2.9
Unrecognized tax positions	1.1		(2.4)		(0.3)
Tax valuation allowance	(11.3)		7.2		5.6
Foreign tax credit	(4.2)		—		—
Withholding tax and other foreign taxes	1.1		1.3		(0.2)
Change in tax rate	0.8		(3.6)		(0.3)
R&D tax credit	(2.3)		(2.4)		(1.2)
Impact of U.S. tax reform	—		42.5		—
Other	(1.0)		(1.7)		(0.7)
	$	22.9	$	68.4	$	25.8

Components of the deferred income tax assets and liabilities

Deferred income taxes arise from temporary differences between the financial reporting and tax reporting bases of assets and liabilities, and operating loss and tax credit carryforwards for tax purposes. The components of the Company's deferred income tax assets and liabilities are as follows at June 30, 2019 and 2018:

	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018
Deferred income tax assets:
Accrued liabilities	$	23.3	$	19.9
Equity compensation	35.9		12.9
Loss and tax credit carryforwards	150.0		118.9
Foreign currency	10.8		9.5
Pension	30.7		29.4
Property-related	9.7		9.7
Intangibles	16.6		22.5
Other	7.3		1.9
Euro-denominated debt	6.0		11.5
Total deferred income tax assets	$	290.3	$	236.2
Valuation allowance	(76.3)		(86.2)
Net deferred income tax assets	$	214.0	$	150.0
	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018
Deferred income tax liabilities:
Accrued liabilities	$	(1.2)	$	(0.8)
Foreign currency	(0.8)		(0.9)
Property-related	(47.4)		(50.2)
Goodwill and other intangibles	(194.6)		(95.6)
Other	(5.8)		(2.1)
Total deferred income tax liabilities	$	(249.8)	$	(149.6)
Net deferred tax asset/(liability)	$	(35.8)	$	0.4

Deferred tax assets and liabilities

Deferred tax assets and liabilities in the preceding table are in the following captions in the consolidated balance sheets at June 30, 2019 and 2018:

	Fiscal Year Ended    June 30,
(Dollars in millions)	2019		2018
Non-current deferred tax asset	$	38.6	$	32.9
Non-current deferred tax liability	74.4		32.5
Net deferred tax asset/(liability)	$	(35.8)	$	0.4

Reconciliation of Unrecognized tax benefit, excluding accrued interest

A reconciliation of unrecognized tax benefits, excluding accrued interest, for June 30, 2019, 2018, and 2017 is as follows:

(Dollars in millions)
Balance at June 30, 2016	$	61.5
Additions based on tax positions related to the current year	3.3
Additions for tax positions of prior years	0.1
Reductions for tax positions of prior years	(6.8)
Settlements	(5.4)
Lapse of the applicable statute of limitations	(0.2)
Balance at June 30, 2017	$	52.5
Additions based on tax positions related to the current year	0.1
Additions for tax positions of prior years	—
Reductions for tax positions of prior years	(2.7)
Settlements	(47.5)
Lapse of the applicable statute of limitations	(0.2)
Balance at June 30, 2018	$	2.2
Additions based on tax positions related to the current year	—
Additions for tax positions of prior years	3.0
Reductions for tax positions of prior years	(0.1)
Settlements	—
Lapse of the applicable statute of limitations	(1.3)
Balance at June 30, 2019	$	3.8