Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

v3.10.0.1
Income Taxes
 6 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 12 – INCOME TAXES
The following table provides details of income taxes:

Three months ended
December 31,
 
Six months ended
December 31,
(Dollar amounts in thousands)
2018
 
2017
 
2018
 
2017
Income before income taxes
$
415,963

 
$
347,307

 
$
843,531

 
$
683,459

Provision for income taxes
$
46,863

 
$
481,626

 
$
78,487

 
$
536,842

Effective tax rate
11.3
%
 
138.7
%
 
9.3
%
 
78.5
%

As of December 31, 2018, we had completed our accounting for the tax effects of the Act, which was enacted into law on December 22, 2017. We recorded a tax benefit adjustment of $0.3 million and $20.1 million for the transition tax liability provided by the Act during the three and six months ended December 31, 2018, respectively. Future guidance of the Act from U.S. federal and state governments may change the tax liability.
In the normal course of business, we are subject to examination by tax authorities throughout the world. We are under United States federal income tax examination for the fiscal year ended June 30, 2016. We are subject to state income tax examinations for all years beginning from the fiscal year ended June 30, 2014. We are also subject to examinations in other major foreign jurisdictions, including Singapore, for all years beginning from the fiscal year ended June 30, 2014.
It is possible that certain examinations may be concluded in the next twelve months. We believe that it may recognize up to $10.0 million of our existing unrecognized tax benefits within the next twelve months as a result of the lapse of statutes of limitations and the resolution of examinations with various tax authorities.