Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income before income taxes for the fiscal years ended June 30, 2016, 2015 and 2014 were as follows:

	Year Ended June 30,
	2016		2015		2014
Domestic income	$	285,252	$	172,348	$	129,653
Foreign income		245,256		273,933		177,742
Income before income taxes	$	530,508	$	446,281	$	307,395

Income Tax Expense (Benefit), Net

Income tax expense (benefit), net for the fiscal years ended June 30, 2016, 2015 and 2014 consisted of the following:

	Year Ended June 30,
	2016			2015			2014
Current:
Federal	$	82,445		$	17,108		$	13,927
State		4,450			2,762			2,703
Foreign		64,696			51,325			24,940
Current income tax expense, net	$	151,591		$	71,195		$	41,570
Deferred:
Federal		37,772			33,940			36,371
State		(75	)		(1,107	)		1,581
Foreign		(21,231	)		(759	)		(6,912	)
Deferred income tax expense, net	$	16,466		$	32,074		$	31,040
Income tax expense, net	$	168,057		$	103,269		$	72,610

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, 2016, 2015 and 2014 consisted of the following:

	Year Ended June 30,
	2016			2015			2014 ⁽¹⁾
Provision for Federal income taxes before credits at statutory rate	$	185,678		$	156,199		$	107,588
State income taxes		4,376			1,655			4,284
Difference between Federal statutory rate and foreign effective rate		(33,420	)		(34,940	)		(28,610	)
Foreign exchange (losses) gains		(61	)		(6,665	)		2,097
Foreign income (loss) included in U.S. taxable income		25,409			(11,561	)		3,683
Non-deductible expenses and other taxable permanent differences		10,085			9,899			7,214
Non-taxable income and other deductible permanent differences		(20,570	)		(25,130	)		(24,912	)
Tax benefit from U.S. production activities		(832	)		(792	)		(3,263	)
Change in valuation allowance		(398	)		16,777			(1,263	)
Change in uncertain tax positions		5,003			11,420			9,189
Difference between Federal and financial tax accounting for equity compensation		2,310			(486	)		(794	)
Federal income credits		(15,448	)		(3,958	)		(5,053	)
Other		5,925			(9,149	)		2,450
Income tax expense, net	$	168,057		$	103,269		$	72,610

⁽¹⁾	The presentation of fiscal year 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, 2016 and 2015, deferred taxes consisted of the following:

	June 30,
Assets/(Liabilities)	2016			2015
Federal and state tax credits	$	22,140		$	51,377
Deferred interest and loss carryforwards		152,579			148,258
Inventory costing differences		16,488			15,784
Capitalized research and development		73,025			75,416
Amortization of share-based compensation		21,610			15,485
Pension liability and other		58,748			51,324
Fixed assets		3,612			-
Reserves and other		69,501			81,375
Deferred tax assets, gross		417,703			439,019
Less valuation allowance		(130,863	)		(138,173	)
Deferred tax assets, net of valuation allowance		286,840			300,846
Fixed assets		-			(270	)
Intangible assets		(143,370	)		(192,296	)
Derivatives		(35,415	)		(53,874	)
Deferred tax liability, gross		(178,785	)		(246,440	)
Net deferred tax asset	$	108,055		$	54,406

Schedule of Gross Unrecognized Tax Benefits, Including Penalties

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

	2016			2015
Balance, beginning of year	$	58,489		$	44,209
Increases based on tax positions related to the current year		1,510			4,873
Decreases based on tax positions related to the current year		-			(817	)
Increases identified during the current year related to prior years		9,410			10,520
Decreases identified during the current year related to prior years		(1,194	)		(4,130	)
Decreases related to settlement with taxing authorities		(3,329	)		(45	)
Reductions to unrecognized benefits as a result of a lapse of the applicable statute of limitations		-			(14	)
Increases related to preacquisition positions in purchase accounting		-			6,040
Foreign currency translation		381			(2,147	)
Balance, end of year	$	65,267		$	58,489