Income Taxes (Tables)

12 Months Ended

Jun. 30, 2015

Income before income taxes for the fiscal years ended June 30, 2015, 2014 and 2013 were as follows:


	Year Ended June 30,
	2015		2014		2013
Domestic income	$	172,348	$	129,653	$	110,136
Foreign income		273,933		177,742		64,134

Income before income taxes	$	446,281	$	307,395	$	174,270

Income Tax Expense (Benefit), Net

Income tax expense (benefit), net for the fiscal years ended June 30, 2015, 2014 and 2013 consisted of the following:


	Year Ended June 30,
	2015			2014			2013
Current:
Federal	$	17,108		$	13,927		$	6,416
State		2,762			2,703			2,315
Foreign		51,325			24,940			15,415

Current income tax expense, net	$	71,195		$	41,570		$	24,146
Deferred:
Federal		33,940			36,371			23,186
State		(1,107	)		1,581			(11,703	)
Foreign		(759	)		(6,912	)		(3,900	)

Deferred income tax expense, net	$	32,074		$	31,040		$	7,583

Income tax expense, net	$	103,269		$	72,610		$	31,729

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, 2015, 2014 and 2013 consisted of the following:


	Year Ended June 30,
	2015 ⁽¹⁾			2014 ⁽¹⁾			2013 ⁽¹⁾
Provision for Federal income taxes before credits at statutory rate	$	156,199		$	107,588		$	60,995
State income taxes (benefits)		1,655			4,284			(9,388	)
Difference between Federal statutory rate and foreign effective rate		(34,940	)		(28,610	)		(18,539	)
Foreign exchange (losses) gains		(6,665	)		2,097			821
Foreign income (loss) included in U.S. taxable income		(11,561	)		3,683			1,196
Non-deductible expenses and other taxable permanent differences		9,899			7,214			5,820
Non-taxable income and other deductible permanent differences		(25,130	)		(24,912	)		(9,180	)
Tax benefit from U.S. production activities		(792	)		(3,263	)		(3,879	)
Change in valuation allowance		16,777			(1,263	)		9,520
Change in uncertain tax positions		11,420			9,189			3,195
Difference between Federal and financial tax accounting for equity compensation		(486	)		(794	)		3,033
Federal income credits		(3,958	)		(5,053	)		(9,616	)
Other		(9,149	)		2,450			(2,249	)

Income tax expense, net	$	103,269		$	72,610		$	31,729

⁽¹⁾	The presentation of fiscal year 2013 and 2014 effective rate analysis has been revised to segregate out from the effect of foreign rate category other permanent items and present them in a manner consistent with our domestic disclosure.

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, 2015 and 2014, deferred taxes consisted of the following:


	June 30,
Assets/(Liabilities)	2015			2014
Federal and state tax credits	$	51,377		$	90,176
Deferred interest and loss carryforwards		148,258			74,845
Inventory costing differences		15,784			13,935
Capitalized research and development		75,416			91,644
Amortization of share-based compensation		15,485			13,525
Pension liability and other		51,324			46,934
Financial instruments		0			4,688
Reserves and other		81,375			54,507

Deferred tax assets, gross		439,019			390,254
Less valuation allowance		(138,173	)		(65,462	)

Deferred tax assets, net of valuation allowance		300,846			324,792

Fixed assets		(270	)		(2,140	)
Intangible assets		(192,296	)		(51,922	)
Derivatives		(53,874	)		0

Deferred tax liability, gross		(246,440	)		(54,062	)

Net deferred tax asset	$	54,406		$	270,730

Schedule of Gross Unrecognized Tax Benefits, Including Penalties

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


	2015			2014
Balance, beginning of year	$	44,209		$	35,206
Increases based on tax positions related to the current year		4,873			2,103
Decreases based on tax positions related to the current year		(817	)		(515	)
Increases identified during the current year related to prior years		10,520			13,182
Decreases identified during the current year related to prior years		(4,130	)		(5,445	)
Decreases related to settlement with taxing authorities		(45	)		0
Reductions to unrecognized benefits as a result of a lapse of the applicable statute of limitations		(14	)		(330	)
Increases related to preacquisition positions in purchase accounting		6,040			0
Foreign currency translation		(2,147	)		8

Balance, end of year	$	58,489		$	44,209