Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income before income taxes for the fiscal years ended June 30, 2014, 2013 and 2012 were as follows:


	Year Ended June 30,
	2014		2013		2012
Domestic income	$	129,653	$	110,136	$	63,411
Foreign income		177,742		64,134		197,742

Income before income taxes	$	307,395	$	174,270	$	261,153

Income Tax Expense (Benefit), Net

Income tax expense (benefit), net for the fiscal years ended June 30, 2014, 2013 and 2012 consisted of the following:


	Year Ended June 30,
	2014			2013			2012
Current:
Federal	$	13,927		$	6,416		$	1,679
State		2,703			2,315			1,061
Foreign		24,940			15,415			28,178

Current income tax expense, net		41,570			24,146			30,918
Deferred:
Federal		36,371			23,186			(105,823	)
State		1,581			(11,703	)		(8,553	)
Foreign		(6,912	)		(3,900	)		15,070

Deferred income tax expense (benefit), net		31,040			7,583			(99,306	)

Income tax expense (benefit), net	$	72,610		$	31,729		$	(68,388	)

Schedule of Tax Provisions and Analysis of Effective Income Tax Rates

The tax provisions and analysis of effective income tax rates for the fiscal years ended June 30, 2014, 2013 and 2012 consisted of the following:


	Year Ended June 30,
	2014			2013			2012
Provision for Federal income taxes before credits at statutory rate	$	107,588		$	60,995		$	91,404
State income taxes		2,785			986			2,124
Difference between Federal statutory rate and foreign effective rate		(43,020	)		(33,209	)		(22,240	)
Expenses not deductible for tax purposes and other		5,236			4,000			12,444
Tax benefit from U.S. production activities		(3,263	)		(3,879	)		(3,704	)
Change in valuation allowance		(1,263	)		2,874			(124,211	)
Change in uncertain tax positions		9,189			5,035			(1,937	)
Difference between Federal and financial tax accounting for equity compensation		2,169			2,053			896
Federal income tax credits		(5,515	)		(7,592	)		(22,144	)
Other		(1,296	)		466			(1,020	)

Income tax expense (benefit), net	$	72,610		$	31,729		$	(68,388	)

Schedule of Deferred Taxes

Deferred taxes are recorded based upon differences between the financial statement basis and tax basis of assets and liabilities and available tax loss and credit carryforwards. At June 30, 2014 and 2013, deferred taxes consisted of the following:


	June 30,
Assets/(Liabilities)	2014			2013
Federal and state tax credits	$	90,176		$	112,937
Deferred interest and loss carryforwards		74,845			77,522
Inventory costing differences		13,935			10,076
Capitalized research and development		91,644			106,935
Fixed assets		0			9,261
Amortization of share-based compensation		13,525			15,440
Pension liability and other		46,934			42,795
Financial instruments		4,688			0
Reserves and other		54,507			35,814

Deferred tax assets, gross		390,254			410,780
Less valuation allowance		(65,462	)		(63,947	)

Deferred tax assets, net of valuation allowance		324,792			346,833
Fixed assets		(2,140	)		0
Intangible assets		(51,922	)		(6,843	)
Financial instruments		0			(2,965	)

Deferred tax liability, gross		(54,062	)		(9,808	)

Net deferred tax asset	$	270,730		$	337,025

Schedule of Gross Unrecognized Tax Benefits, Including Penalties

Changes in the total amount of gross unrecognized tax benefits, including penalties, are as follows:


	2014			2013
Balance, beginning of year	$	35,206		$	34,200
Increases based on tax positions related to the current year		2,103			2,718
Decreases based on tax positions related to the current year		(515	)		(233	)
Increases identified during the current year related to prior years		13,182			1,884
Decreases identified during the current year related to prior years		(5,445	)		0
Reclassification		0			(772	)
Decreases related to settlement with taxing authorities		0			(1,687	)
Reductions to unrecognized benefits as a result of a lapse of the applicable statute of limitations		(330	)		(430	)
Foreign currency translation		8			(474	)

Balance, end of year	$	44,209		$	35,206