Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income before income taxes was comprised of the following (in thousands):

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


	Year Ended June 30,
	2022		2021		2020
Taxes on income consist of:
Currently tax provision:
Federal	$	10,080	$	15,179	$	18,976
State		6,663		6,681		6,018
Foreign		14,481		14,743		8,580
Total current tax provision		31,224		36,603		33,574
Deferred tax provision:
Federal		8,130		(20,812)		14,074
State		1,477		(4,962)		2,055
Foreign		(2,544)		(2,239)		(2,522)
Total deferred tax provision		7,063		(28,013)		13,607
Total income tax provision	$	38,287	$	8,590	$	47,181

The following is a reconciliation of the federal tax calculated at the statutory rate of to the actual income taxes provided:


	Year Ended June 30,
	2022			2021			2020

Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.2			0.6			2.3
Research and development tax credit		(1.0)			(1.8)			(0.7)
Contingent consideration adjustment		(1.4)			0.8			(0.2)
Foreign tax rate differences		0.4			0.8			(0.2)
Impairment		1.1			—			—
Option exercises		(9.4)			(16.9)			(5.7)
U.S. taxation of foreign earnings		(0.1)			(0.1)			0.9
Foreign derived intangible income		(1.9)			(5.1)			(0.9)
Executive compensation limitations		1.9			6.5			1.6
Other, net		(0.1)			0.0			(1.0)
Effective tax rate		12.7	%		5.8	%		17.1	%

Deferred taxes on the Consolidated Balance Sheets consisted of the following temporary differences (in thousands):


	June 30,
	2022		2021

Inventory	$	8,033	$	6,730
Net operating loss carryovers		27,948		31,345
Tax credit carryovers		13,131		14,486
Excess tax basis in equity investments		2,435		2,429
Deferred compensation		11,778		11,108
Derivative - cash flow hedge		—		1,908
Lease liability		13,779		17,016
Other		8,585		8,526
Valuation allowance		(9,466)		(6,665)
Deferred tax assets		76,223		86,883

Net unrealized gain on available-for-sale investments		(6,963)		(3,159)
Intangible asset amortization		(133,672)		(150,765)
Depreciation		(18,060)		(9,099)
Right of use asset		(12,793)		(15,868)
Derivative - cash flow hedge		(2,480)		—
Other		(1,249)		(1,117)
Deferred tax liabilities		(175,217)		(180,008)
Net deferred tax liabilities	$	(98,994)	$	(93,125)

The following is a reconciliation of the beginning and ending balance of unrecognized tax benefits (in thousands):


	Year Ended June 30,
	2022		2021		2020
Beginning balance	$	7,271	$	4,297	$	5,032
Additions due to acquisitions		960		—		—
Additions for tax positions of prior year		304		4,038		306
Decrease in unrecognized tax benefits for prior year positions		(357)		(778)		(1,041)
Settlements		(2,860)		(286)		—
FX impact		(16)		—		—
Ending balances	$	5,302	$	7,271	$	4,297