Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

 v2.3.0.11
Income taxes (Tables)
12 Months Ended
Jun. 30, 2011
Components of Provisions for Income Taxes

The provisions for income taxes consist of the following (in thousands):

 

     Year Ended June 30,  
     2011      2010     2009  

Earnings before income taxes consist of:

       

Domestic

   $ 131,080       $ 124,860      $ 121,585   

Foreign

     33,901         31,586        33,778   
  

 

 

    

 

 

   

 

 

 
   $ 164,981       $ 156,446      $ 155,363   
  

 

 

    

 

 

   

 

 

 

Taxes on income consist of:

       

Currently payable:

       

Federal

   $ 36,600       $ 37,098      $ 38,621   

State

     2,302         1,856        2,308   

Foreign

     9,854         9,266        9,920   

Net deferred:

       

Federal

     3,893         (1,494     (721

State

     19         39        9   

Foreign

     11         (95     (16
  

 

 

    

 

 

   

 

 

 
   $ 52,679       $ 46,670      $ 50,121   
  

 

 

    

 

 

   

 

 

 
Reconciliation of Federal Tax Calculated at Statutory Rate

The following is a reconciliation of the federal tax calculated at the statutory rate of 35% to the actual income taxes provided (in thousands):

 

     Year Ended June 30,  
     2011     2010     2009  

Computed expected federal income tax expense

   $ 57,743      $ 54,756      $ 54,377   

State income taxes, net of federal benefit

     1,463        1,247        1,805   

Qualified production activity deduction

     (3,889     (2,459     (2,397

Research and development tax credit

     (1,329     (444     (1,192

Tax-exempt interest

     (858     (1,114     (1,424

Increase (decrease) in deferred tax valuation allowance

     60        44        (235

Foreign exchange loss on repatriation

     0        (4,424     0   

Other

     (511     (936     (813
  

 

 

   

 

 

   

 

 

 
   $ 52,679      $ 46,670      $ 50,121   
  

 

 

   

 

 

   

 

 

 
Temporary Differences Comprising Deferred Taxes on the Consolidated Balance Sheets

Temporary differences comprising deferred taxes on the Consolidated Balance Sheets are as follows (in thousands):

 

     June 30  
     2011     2010  

Inventory

   $ 4,269      $ 8,902   

Unrealized profit on intercompany sales

     1,075        935   

Excess tax basis in equity investments

     3,643        3,651   

Foreign tax credit carryforward

     0        3,304   

Deferred compensation

     2,198        1,910   

Other

     596        950   

Valuation allowance

     (3,016     (2,956
  

 

 

   

 

 

 

Net deferred tax assets

     8,765        16,696   

Goodwill and intangible asset amortization

     (15,077     (1,241

Depreciation

     (485     0   

Other

     (766     (1,065
  

 

 

   

 

 

 

Deferred tax liabilities

     (16,328     (2,306
  

 

 

   

 

 

 

Net deferred tax (liabilities) assets

   $ (7,563   $ 14,390   
  

 

 

   

 

 

 
Changes in Unrecognized Tax Benefits

A summary of changes in unrecognized tax benefits is as follows (in thousands):

 

     June 30  
     2011     2010  

Beginning balance

   $ 96      $ 91   

Change due to tax positions related to the current year

     (53     15   

Decrease due to lapse of statute of limitations

     (9     (10
  

 

 

   

 

 

 

Ending balance

   $ 34      $ 96