Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

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


	Year Ended June 30,
	2024		2023		2022
Domestic	$	174,806	$	288,458	$	255,118
Foreign		10,883		50,201		46,268
Earnings before income taxes	$	185,689	$	338,659	$	301,386

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


	Year Ended June 30,
	2024		2023		2022
Taxes on income consist of:
Current tax provision:
Federal	$	40,228	$	59,810	$	10,080
State		4,853		12,753		6,663
Foreign		12,664		10,453		14,481
Total current tax provision		57,745		83,016		31,224
Deferred tax provision:
Federal		(28,301)		(28,829)		8,130
State		(4,563)		(2,414)		1,477
Foreign		(7,297)		1,444		(2,544)
Total deferred tax provision		(40,161)		(29,799)		7,063
Total income tax provision	$	17,584	$	53,217	$	38,287

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


	Year Ended June 30,
	2024			2023			2022

Income tax expense at federal statutory rate		21.0	%		21.0	%		21.0	%
State income taxes, net of federal benefit		(0.2)			2.5			2.2
Research and development tax credit		(2.2)			(1.3)			(1.0)
Contingent consideration adjustment		(0.4)			(0.8)			(1.4)
Foreign tax rate differences		3.1			(0.6)			0.4
(Gain)/loss on investment		—			(0.7)			1.1
Option exercises		(8.8)			(3.3)			(9.4)
U.S. taxation of foreign earnings		0.1			0.4			(0.1)
Foreign derived intangible income		(4.8)			(3.4)			(1.9)
Foreign withholding tax		(1.2)			1.5			—
Executive compensation limitations		2.7			0.8			1.9
Other, net		0.2			(0.4)			(0.10)
Effective tax rate		9.5	%		15.7	%		12.7	%

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


	June 30,
	2024		2023

Inventory	$	9,675	$	10,906
Net operating loss carryovers		25,065		20,315
Tax credit carryovers		9,118		9,218
Excess tax basis in equity investments		1,115		939
Deferred compensation		16,628		16,528
Lease liability		19,501		21,001
Capitalized R&D		36,151		21,081
Held-for-sale asset impairment		5,216		—
Other		6,119		4,379
Valuation allowance		(19,265)		(9,344)
Deferred tax assets		109,323		95,023

Intangible asset amortization		(120,648)		(134,810)
Depreciation		(20,448)		(21,449)
Right of use asset		(17,876)		(20,021)
Derivative - cash flow hedge		(2,516)		(3,995)
Other		(3,698)		(3,730)
Deferred tax liabilities		(165,186)		(184,005)
Net deferred income tax liabilities	$	(55,863)	$	(88,982)

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


	Year Ended June 30,
	2024		2023		2022
Beginning balance	$	5,291	$	5,302	$	7,271
Additions due to acquisitions		—		—		960
Additions for tax positions of prior year		—		—		304
Decrease in unrecognized tax benefits for prior year positions		—		—		(357)
Settlements		—		—		(2,860)
FX impact		(13)		(11)		(16)
Ending balances	$	5,278	$	5,291	$	5,302