Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Schedule of Income before Income Tax, Domestic and Foreign

The composition of (loss) income before taxes from domestic and foreign locations was as follows for the fiscal years ended June 30 (in thousands):



	2014			2013			2012
Domestic	$	(619,243	)	$	(233,153	)	$	(1,446,575	)
Foreign	1,963			801			1,568
Loss before taxes	$	(617,280	)	$	(232,352	)	$	(1,445,007	)

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) reflected in the accompanying consolidated statements of operations were as follows for the fiscal years ended June 30 (in thousands):



	2014		2013			2012
Current taxes:
Federal	$	7,472	$	32,441		$	104,730
State and local	2,891		(1,563		)	14,027
Total current tax expense	10,363		30,878			118,757
Deferred tax expense (benefit)	36,274		(18,840		)	(130,194		)
Income tax expense (benefit)	$	46,637	$	12,038		$	(11,437	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) reflected in the accompanying consolidated statements of operations varies from the amounts that would have been provided by applying the United States federal statutory income tax rate to earnings before income taxes as shown below for the fiscal years ended June 30 (in thousands):



	2014			2013			2012
U.S. federal statutory income tax	$	(216,048	)	$	(81,323	)	$	(505,752	)
State and local income taxes, net of federal benefit	(10,708		)	(196		)	(6,741		)
Increase in valuation allowance	127,738			151			3,069
State tax settlements, net of federal benefit	—			(3,808		)	—
Permanent items	1,880			2,913			1,477
Nondeductible goodwill	151,812			94,805			497,991
Uncertain tax positions	(2,956		)	(490		)	(602		)
Other items, net	(5,081		)	(14		)	(879		)
Income tax expense (benefit)	$	46,637		$	12,038		$	(11,437	)

Schedule of Deferred Tax Assets and Liabilities

Net deferred income tax assets and liabilities consisted of the following at June 30 (in thousands):



	2014			2013
Current deferred tax assets:
Allowance for doubtful accounts	$	71,689		$	71,769
Accrued wages	3,481			6,872
Interest rate swap	4,887			—
Other	9,069			3,434
Gross current deferred tax assets	89,126			82,075
Less valuation allowance	(64,624		)	(5,148		)
Total current deferred tax assets	$	24,502		$	76,927
Noncurrent deferred tax assets:
Interest rate swap	$	—		$	8,819
Deferred liabilities	30,045			35,683
Foreign and state net operating losses	12,834			7,990
Property and equipment	7,847			—
Share-based compensation	25,493			24,023
Other	35,910			26,981
Gross noncurrent deferred tax assets	112,129			103,496
Less valuation allowance	(87,639		)	(19,677		)
Total noncurrent deferred tax assets	24,490			83,819
Noncurrent deferred tax liabilities:
Intangible assets	82,569			130,491
Property and equipment	—			25,657
Other	498			293
Total noncurrent deferred tax liabilities	83,067			156,441
Total net noncurrent deferred tax liabilities	$	58,577		$	72,622

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of unrecognized tax benefits, excluding interest expense and the indirect benefits of state taxes, for the fiscal years ended June 30 is as follows (in thousands):



	2014			2013			2012
Unrecognized tax benefits, beginning of year	$	3,962		$	4,523		$	5,438
(Decrease) in prior year unrecognized tax benefits	—			—			(93		)
Increase in current year unrecognized tax benefits	—			127			58
(Decrease) in unrecognized tax benefits due to the expiration of statutes of limitation	(2,926		)	(688		)	(880		)
Unrecognized tax benefits, end of year	$	1,036		$	3,962		$	4,523