Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Summary of Components of Income Before Taxes and Equity in Earnings of Equity-Method Investments

The components of (loss) income from continuing operations before income taxes and equity in net loss (income) of equity-method investees were as follows:



	Fiscal Year Ended June 30,
	2019			2018			2017
Domestic	$	(134,096	)	$	(13,936	)	$	47,781
Foreign	82,109			95,138			40,097
Total	$	(51,987	)	$	81,202		$	87,878

Summary of the Provision for Income Taxes

The (benefit) provision for income taxes consisted of the following:



	Fiscal Year Ended June 30,
	2019			2018			2017
Current:
Federal	$	3,639		$	(1,309	)	$	18,331
State and local	760			1,383			(293		)
Foreign	18,694			20,542			14,884
	23,093			20,616			32,922
Deferred:
Federal	(24,045		)	(22,612		)	(3,198		)
State and local	1,188			1,973			960
Foreign	(2,933		)	(864		)	(8,218		)
	(25,790		)	(21,503		)	(10,456		)
Total	$	(2,697	)	$	(887	)	$	22,466

Reconciliation of Expected Income Taxes to Actual

The reconciliation of the U.S. federal statutory rate to our effective rate on income before provision (benefit) for income taxes was as follows:



	Fiscal Year Ended June 30,
	2019			%		2018			%		2017			%
Expected United States federal income tax at statutory rate	$	(10,917	)	21.0	%	$	22,818		28.1	%	$	30,757		35.0	%
State income taxes, net of federal (benefit) provision	(9,793		)	18.8	%	2,774			3.4	%	2,757			3.1	%
Domestic manufacturing deduction	—			—	%	—			—	%	(846		)	(1.0	)%
Foreign income at different rates	205			(0.4	)%	(7,174		)	(8.8	)%	(6,539		)	(7.4	)%
Impairment of goodwill and intangibles	—			—	%	1,816			2.2	%	—			—	%
Change in valuation allowance	9,810			(18.9	)%	119			0.1	%	(60		)	(0.1	)%
Unrealized foreign exchange losses	—			—	%	—			—	%	807			0.9	%
Change in reserves for uncertain tax positions	841			(1.6	)%	(3,859		)	(4.8	)%	(4,417		)	(5.0	)%
Tax Act’s transition tax (a)	6,834			(13.1	)%	7,054			8.7	%	—			—	%
Tax Act’s impact of deferred taxes (b)	—			—	%	(25,006		)	(30.8	)%	—			—	%
Global Intangible Low Taxed Income	3,872			(7.4	)%	—			—	%	—			—	%
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate	—			—	%	—			—	%	(1,841		)	(2.1	)%
Other	(3,549		)	6.8	%	571			0.8	%	1,848			2.2	%
(Benefit) provision for income taxes	$	(2,697	)	5.2	%	$	(887	)	(1.1	)%	$	22,466		25.6	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:



	June 30, 2019			June 30, 2018
Noncurrent deferred tax assets/(liabilities):
Basis difference on inventory	$	9,128		$	9,139
Reserves not currently deductible	23,518			11,060
Basis difference on intangible assets	(92,923		)	(97,365		)
Basis difference on property and equipment	(6,060		)	(8,444		)
Other comprehensive income	502			(133		)
Net operating loss and tax credit carryforwards	73,976			18,276
Stock-based compensation	827			1,348
Other	3,985			41
Valuation allowances	(34,912		)	(20,831		)
Noncurrent deferred tax liabilities, net⁽¹⁾	$	(21,959	)	$	(86,909	)

(1) Includes $29,951 of non-current deferred tax assets included within Other Assets on the June 30, 2019 consolidated balance sheet.

Summary of Changes in Valuation Allowances

The changes in valuation allowances against deferred income tax assets were as follows:



	Fiscal Year Ended June 30,
	2019			2018
Balance at beginning of year	$	20,831		$	20,712
Additions charged to income tax expense	17,773			1,251
Reductions credited to income tax expense	(3,231		)	(1,345		)
Currency translation adjustments	(461		)	213
Balance at end of year	$	34,912		$	20,831

Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity

Unrecognized tax benefits activity, including interest and penalties, is summarized below:



	Fiscal Year Ended June 30,
	2019			2018			2017
Balance at beginning of year	$	6,730		$	11,602		$	16,019
Additions based on tax positions related to the current year	248			118			217
Additions based on tax positions related to prior years	5,446			—			—
Reductions due to lapse in statute of limitations and settlements	(555		)	(4,990		)	(4,634		)
Balance at end of year	$	11,869		$	6,730		$	11,602