Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

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,	2017			2016			2015
($000)
U.S. loss	$	(6,944	)	$	(5,809	)	$	(5,326	)
Non-U.S. income		125,732			95,764			84,438
Earnings before income taxes	$	118,788		$	89,955		$	79,112

Components of Income Tax Expense

The components of income tax expense were as follows:

Year Ended June 30,	2017			2016			2015
($000)
Current:
Federal	$	2,133		$	3,704		$	(146	)
State		253			5			86
Foreign		22,312			19,783			16,978
Total Current	$	24,698		$	23,492		$	16,918
Deferred:
Federal	$	(6,963	)	$	2,759		$	(2,762	)
State		(1,251	)		1,302			(251	)
Foreign		7,030			(3,084	)		(768	)
Total Deferred	$	(1,184	)	$	977		$	(3,781	)
Total Income Tax Expense	$	23,514		$	24,469		$	13,137

Schedule of Principal Items Comprising Deferred Income Taxes

Principal items comprising deferred income taxes were as follows:

June 30,	2017			2016
($000)
Deferred income tax assets
Inventory capitalization	$	6,338		$	6,814
Non-deductible accruals		1,705			2,212
Accrued employee benefits		9,738			15,543
Net-operating loss and credit carryforwards		53,048			43,516
Share-based compensation expense		12,386			11,693
Other		1,761			1,770
Valuation allowances		(42,562	)		(42,641	)
Total deferred income tax assets	$	42,414		$	38,907
Deferred income tax liabilities
Tax over book accumulated depreciation	$	(7,803	)	$	(9,759	)
Intangible assets		(38,108	)		(29,628	)
Tax on unremitted earnings		(6,210	)		(797	)
Other		(2,615	)		(1,978	)
Total deferred income tax liabilities	$	(54,736	)	$	(42,162	)
Net deferred income taxes	$	(12,322	)	$	(3,255	)

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

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

Year Ended June 30,	2017			%			2016			%			2015			%
($000)
Taxes at statutory rate	$	41,576			35		$	31,484			35		$	27,689			35
Increase (decrease) in taxes resulting from:
State income taxes-net of federal benefit		(641	)		-			864			1			(196	)		-
Taxes on non U.S. earnings		(12,907	)		(11	)		(13,860	)		(15	)		(11,687	)		(15	)
Valuation allowance		(806	)		(1	)		8,464			9			678			1
Research and manufacturing incentive deductions		(3,346	)		(3	)		(3,074	)		(3	)		(2,573	)		(3	)
Other		(362	)		-			591			-			(774	)		(1	)
	$	23,514			20		$	24,469			27		$	13,137			17

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, 2017:

Type	Amount		Expiration Date
($000)
Tax credit carryforwards:
Federal research and development credits	$	10,953	June 2019-June 2037
Foreign tax credits		4,539	June 2024-June 2027
State tax credits		4,820	June 2018-June 2037
Operating loss carryforwards:
Loss carryforwards - federal	$	100,922	June 2020-June 2037
Loss carryforwards - state		71,536	June 2018-June 2037
Loss carryforwards - foreign		2,610	June 2018-June 2024

Schedule of Changes in Liability for Unrecognized Tax Benefits

Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2017, 2016 and 2015 were as follows:

	2017			2016			2015
($000)
Balance at Beginning of Year	$	5,559		$	4,022		$	2,775
Increases in current year tax positions		895			2,146			2,450
Increases in prior year tax positions		2,605			190		203
Decreases in prior year tax positions		-			(67	)		-
Settlements		(1,143	)		-			-
Expiration of statute of limitations		(339	)		(732	)		(1,406	)
Balance at End of Year	$	7,577		$	5,559		$	4,022