Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

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


	Year Ended June 30,
	2023		2022		2021
Domestic	$	288,458	$	255,118	$	95,662
Foreign		50,201		46,268		52,513
Earnings before income taxes	$	338,659	$	301,386	$	148,175

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


	Year Ended June 30,
	2023		2022		2021
Taxes on income consist of:
Current tax provision:
Federal	$	59,810	$	10,080	$	15,179
State		12,753		6,663		6,681
Foreign		10,453		14,481		14,743
Total current tax provision		83,016		31,224		36,603
Deferred tax provision:
Federal		(28,829)		8,130		(20,812)
State		(2,414)		1,477		(4,962)
Foreign		1,444		(2,544)		(2,239)
Total deferred tax provision		(29,799)		7,063		(28,013)
Total income tax provision	$	53,217	$	38,287	$	8,590

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


	Year Ended June 30,
	2023			2022			2021

Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		2.5			2.2			0.6
Research and development tax credit		(1.3)			(1.0)			(1.8)
Contingent consideration adjustment		(0.8)			(1.4)			0.8
Foreign tax rate differences		(0.6)			0.4			0.8
(Gain)/loss on investment		(0.7)			1.1			—
Option exercises		(3.3)			(9.4)			(16.9)
U.S. taxation of foreign earnings		0.4			(0.1)			(0.1)
Foreign derived intangible income		(3.4)			(1.9)			(5.1)
Foreign withholding tax		1.5			—			—
Executive compensation limitations		0.8			1.9			6.5
Other, net		(0.4)			(0.10)			0.0
Effective tax rate		15.7	%		12.7	%		5.8	%

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


	June 30,
	2023		2022

Inventory	$	10,906	$	8,033
Net operating loss carryovers		20,315		27,948
Tax credit carryovers		9,218		13,131
Excess tax basis in equity investments		939		2,435
Deferred compensation		16,528		11,778
Lease liability		21,001		13,779
Capitalized R&D		21,081		—
Other		4,379		8,585
Valuation allowance		(9,344)		(9,466)
Deferred tax assets		95,023		76,223

Net unrealized gain on available-for-sale investments		—		(6,963)
Intangible asset amortization		(134,810)		(133,672)
Depreciation		(21,449)		(18,060)
Right of use asset		(20,021)		(12,793)
Derivative - cash flow hedge		(3,995)		(2,480)
Other		(3,730)		(1,249)
Deferred tax liabilities		(184,005)		(175,217)
Net deferred income tax liabilities	$	(88,982)	$	(98,994)

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


	Year Ended June 30,
	2023		2022		2021
Beginning balance	$	5,302	$	7,271	$	4,297
Additions due to acquisitions		—		960		—
Additions for tax positions of prior year		—		304		4,038
Decrease in unrecognized tax benefits for prior year positions		—		(357)		(778)
Settlements		—		(2,860)		(286)
FX impact		(11)		(16)		—
Ending balances	$	5,291	$	5,302	$	7,271