Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 6 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Income Taxes

Note 12. Income Taxes:

The Company’s effective income tax rate for the second quarter of fiscal 2025 and 2024 was 18.6% and 17.7%, respectively, of consolidated earnings before income taxes, inclusive of discrete items, and 17.5% and 5.4% for the first six months of fiscal 2025 and 2024, respectively. The change in the Company’s tax rate for the quarter and six months ended December 31, 2024 compared to the quarter and six months ended December 31, 2023 was driven by discrete tax items.

The Company recognized total net benefits related to discrete tax items of $2.2 million and $5.2 million during the quarter and six months ended December 31, 2024, respectively, compared to total net benefits of $2.8 million and $16.3 million during the quarter and six months ended December 31, 2023, respectively. Share-based compensation excess tax benefit contributed $1.0 million and $4.3 million in the quarter and six months ended December 31, 2024, respectively, compared to $1.3 million and $11.7 million in the quarter and six months, ended December 31, 2023, respectively. During the quarter and six months ended December 31, 2024, the Company had total other immaterial discrete tax benefits of $1.2 million and $0.9 million, respectively. The Company recognized total other immaterial net discrete tax benefits of $1.5 million and $4.6 million in the quarter and six months ended December 31, 2023, respectively.