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75
Internal Revenue Code. Substantially all employees in the U.S. are eligible to participate in the Plan. Under the
provisions of the Plan, employees may voluntarily contribute up to 80% of eligible compensation, subject to IRS
limitations. We match 50% of each participant’s voluntary contributions, subject to a maximum company
contribution of 3% of the participant’s eligible compensation. Employee contributions are fully vested when
contributed. Company matching contributions vest over 4 years.
We expensed $8,576, $6,325 and $4,515 for our government mandated and defined contribution plans in
the years ended June 30, 2013, 2012 and 2011, respectively. Our expenses from these plans have increased
during the year ended June 30, 2013 due to increased headcount, as well as the full year impact of our business
acquisitions during the prior period.
13. Income Taxes
The following is a summary of our income before taxes by geography:
Year Ended June 30,
2013 2012 2011
U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,730 $ 10,851 $ 13,247
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,002 44,994 77,875
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,732 $ 55,845 $ 91,122
The components of the provision (benefit) for income taxes are as follows:
Year Ended June 30,
2013 2012 2011
Current:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,120 $ 9,053 $ 3,025
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,458 2,525 1,521
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,477 4,559 2,894
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,055 16,137 7,440
Deferred:
U.S. Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (274) (2,151) 628
U.S. State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (163) (625) 18
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,231) (1,510) 927
Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,668) (4,286) 1,573
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,387 $ 11,851 $ 9,013
The following is a reconciliation of the standard U.S. statutory tax rate and our effective tax rate:
Year Ended June 30,
2013 2012 2011
U.S. federal statutory income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . 35.0 % 35.0 % 34.0 %
State taxes, net of federal effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 % 2.2 % 1.1 %
Tax rate differential on non-U.S. earnings . . . . . . . . . . . . . . . . . . . . . . (23.8)% (21.3)% (25.1)%
Compensation related items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 % 5.2 % 0.2 %
Increase in valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0 % 1.6 % 0.8 %
Tax benefit from Canadian tax currency election . . . . . . . . . . . . . . . . (4.7)% — % — %
Tax on IP transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 % 1.6 % — %
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — % (3.1)% (1.1)%
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.0 % 21.2 % 9.9 %
Form 10-K