Income Taxes |
9 Months Ended |
|---|---|
Mar. 31, 2023 | |
| Notes to Financial Statements | |
| Income Taxes |
Note 12. Income Taxes: The Company’s effective income tax rate for the third quarter of fiscal 2023 and 2022 was 12.4% and 12.5%, respectively, of consolidated earnings before income taxes, and 16.1% and 9.5% for the first nine months of fiscal 2023 and 2022, respectively. The change in the company’s tax rate for the quarter and nine months ended March 31, 2023 compared to the quarter and nine months ended March 31, 2022 was driven by discrete tax items. The Company recognized total net benefits related to discrete tax items of $5.7 million and $8.9 million during the quarter and nine months ended March 31, 2023, respectively, compared to total net benefits of $6.3 million and $31.6 million during the quarter and nine months ended March 31, 2022, respectively. Share-based compensation excess tax benefit contributed $0.4 million and $9.5 million in the quarter and nine months ended March 31, 2023, respectively, compared to $3.4 million and $27.8 million in the quarter and nine months, ended March 31, 2022, respectively. During the quarter and nine months ended March 31, 2023, the Company had discrete tax benefit of $0.6 million and discrete tax expense of $5.1 million, respectively, related to taxes associated with a planned distribution from our China entity. There was no benefit or expense in the comparative periods related to distributions. The Company recognized total other immaterial net discrete tax benefits of $4.7 million and $4.5 million in the quarter and nine months ended March 31, 2023, respectively, compared to $2.9 million and $3.8 million of other immaterial net discrete tax benefits in the quarter and nine months ended March 31, 2022, respectively. |