Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

Income tax expense (benefit) consists of:



	Fiscal Year Ended June 30,
	2016			2015		2014
	(in thousands)
Current:
Federal	$	21,855		$	24,658	$	25,895
State	1,652			1,639		2,439
Foreign	6,100			4,927		3,826
Total current	29,607			31,224		32,160
Deferred:
Federal	3,990			2,165		7,933
State	365			198		725
Foreign	(1,571		)	900		500
Total deferred	2,784			3,263		9,158
Provision for income taxes	$	32,391		$	34,487	$	41,318

Reconciliation of U.S.Federal Income Tax Expense

A reconciliation of the U.S. Federal income tax expense at a statutory rate of 35% to actual income tax expense, excluding any other taxes related to extraordinary gain is as follows:



	Fiscal Year Ended June 30,
	2016			2015			2014
	(in thousands)
U.S. Federal income tax at statutory rate	$	33,603		$	34,967		$	43,088
Increase (decrease) in income taxes due to:
State and local income taxes, net of Federal benefit	1,578			1,318			1,974
Tax credits	(2,517		)	(1,435		)	(1,935		)
Valuation allowance	541			582			803
Effect of foreign operations, net	(1,150		)	(1,665		)	(1,627		)
Stock compensation	(62		)	(419		)	(494		)
Capitalized acquisition costs	70			839			—
Other	328			300			(491		)
Provision for income taxes	$	32,391		$	34,487		$	41,318

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:



	June 30,
	2016			2015
	(in thousands)
Deferred tax assets derived from:
Allowance for accounts receivable	$	12,458		$	9,925
Inventories	4,799			5,235
Nondeductible accrued expenses	3,842			5,838
Net operating loss carryforwards	3,036			2,223
Tax credits	3,316			2,136
Timing of amortization deduction from goodwill	2,660			10,652
Deferred compensation	6,733			6,014
Stock compensation	6,014			5,730
Timing of amortization deduction from intangible assets	1,600			83
Total deferred tax assets	44,458			47,836
Valuation allowance	(3,029		)	(2,509		)
Total deferred tax assets, net of allowance	41,429			45,327
Deferred tax liabilities derived from:
Timing of depreciation and other deductions from building and equipment	(6,827		)	(549		)
Timing of amortization deduction from goodwill	(5,370		)	(4,908		)
Timing of amortization deduction from intangible assets	(2,974		)	(4,680		)
Total deferred tax liabilities	(15,171		)	(10,137		)
Net deferred tax assets	$	26,258		$	35,190

Components of Pretax Earnings

The components of pretax earnings are as follows:



	Fiscal Year Ended June 30,
	2016		2015		2014
	(in thousands)
Domestic	$	76,062	$	79,364	$	104,685
Foreign	19,948		20,542		18,422
Worldwide pretax earnings	$	96,010	$	99,906	$	123,107

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



	June 30,
	2016			2015			2014
	(in thousands)
Beginning Balance	$	1,301		$	1,153		$	1,034
Additions based on tax positions related to the current year	326			262			204
Additions for tax positions of prior years	658			—			—
Reduction for tax positions of prior years	(137		)	(114		)	(85		)
Ending Balance	$	2,148		$	1,301		$	1,153