Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Components of Earnings (Losses) Before Income Taxes

The components of earnings (losses) before income taxes were as follows:

Year Ended June 30,	2018			2017			2016
($000)
U.S. loss	$	(15,207	)	$	(6,944	)	$	(5,809	)
Non-U.S. income		137,401			125,732			95,764
Earnings before income taxes	$	122,194		$	118,788		$	89,955

Components of Income Tax Expense

The components of income tax expense were as follows:

Year Ended June 30,	2018			2017			2016
($000)
Current:
Federal	$	699		$	2,133		$	3,704
State		401			253			5
Foreign		32,147			22,312			19,783
Total Current	$	33,247		$	24,698		$	23,492
Deferred:
Federal	$	(3,064	)	$	(6,963	)	$	2,759
State		1,615			(1,251	)		1,302
Foreign		2,394			7,030			(3,084	)
Total Deferred	$	945		$	(1,184	)	$	977
Total Income Tax Expense	$	34,192		$	23,514		$	24,469

Schedule of Principal Items Comprising Deferred Income Taxes

Principal items comprising deferred income taxes were as follows:

June 30,	2018			2017
($000)
Deferred income tax assets
Inventory capitalization	$	5,267		$	6,338
Non-deductible accruals		1,125			1,705
Accrued employee benefits		7,614			9,738
Net-operating loss and credit carryforwards		48,738			53,048
Share-based compensation expense		7,925			12,386
Other		3,242			1,761
Valuation allowances		(21,797	)		(42,562	)
Total deferred income tax assets	$	52,114		$	42,414
Deferred income tax liabilities
Tax over book accumulated depreciation	$	(24,174	)	$	(7,803	)
Intangible assets		(24,649	)		(38,108	)
Tax on unremitted earnings		(13,090	)		(6,210	)
Convertible debt		(11,376	)		-
Other		(4,020	)		(2,615	)
Total deferred income tax liabilities	$	(77,309	)	$	(54,736	)
Net deferred income taxes	$	(25,195	)	$	(12,322	)

Schedule of Reconciliation of Income Tax Expense at Statutory U.S. Federal Rate to Reported Income Tax Expense

The reconciliation of income tax expense at the statutory U.S. federal rate to the reported income tax expense is as follows:

Year Ended June 30,	2018			%			2017			%			2016			%
($000)
Taxes at statutory rate	$	34,284			28		$	41,576			35		$	31,484			35
Increase (decrease) in taxes resulting from:
State income taxes-net of federal benefit		1,426			1			(641	)		-			864			1
Taxes on non U.S. earnings		(16,058	)		(13	)		(12,907	)		(11	)		(13,860	)		(15	)
Valuation allowance		(6,008	)		(5	)		(806	)		(1	)		8,464			9
Research and manufacturing incentive deductions and credits		(7,024	)		(6	)		(5,681	)		(5	)		(4,374	)		(5	)
Stock compensation		(4,103	)		(3	)		1,770			2			702			1
Repatriation tax		36,777			30			-			-			-			-
Impact of U.S. tax rate change on deferred balances		(4,209	)		(3	)		-			-			-			-
Other		(893	)		(1	)		203			-			1,189			1
	$	34,192			28		$	23,514			20		$	24,469			27

Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards

The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2018:

Type	Amount		Expiration Date
($000)
Tax credit carryforwards:
Federal research and development credits	$	13,913	June 2019-June 2038
Foreign tax credits		251	June 2024-June 2028
State tax credits		5,594	June 2019-June 2038
Operating loss carryforwards:
Loss carryforwards - federal	$	68,661	June 2020-June 2038
Loss carryforwards - state		47,756	June 2019-June 2038
Loss carryforwards - foreign		16,347	June 2019-June 2028

Schedule of Changes in Liability for Unrecognized Tax Benefits

Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2018, 2017 and 2016 were as follows:

	2018			2017			2016
($000)
Beginning balance	$	7,577		$	5,559		$	4,022
Increases in current year tax positions		2,536			895			2,146
Increases in prior year tax positions		224			2,605		190
Decreases in prior year tax positions		(9	)		-			(67	)
Settlements		-			(1,143	)		-
Expiration of statute of limitations		(436	)		(339	)		(732	)
Ending balance	$	9,892		$	7,577		$	5,559