Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.1
Income Taxes
 9 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Income Taxes

Note 12. Income Taxes:

The Company’s effective income tax rate for the third quarter of fiscal 2025 and 2024 was 41.0% and 19.7%, respectively, of consolidated earnings before income taxes, inclusive of discrete items, and 24.9% and 11.5% for the first nine months of fiscal 2025 and 2024, respectively. The change in the Company’s tax rate for the quarter and nine months ended March 31, 2025 compared to the quarter and nine months ended March 31, 2024 was driven by discrete tax items.

The Company recognized total net tax expense related to discrete tax items of $7.5 million and $2.3 million during the quarter and nine months ended March 31, 2025, respectively, compared to total net benefits of $1.8 million and $16.6 million during the quarter and nine months ended March 31, 2024, respectively. Share-based compensation excess tax benefit contributed $0.4 million and $4.7 million in the quarter and nine months ended March 31, 2025, respectively, compared to $1.9 million and $13.6 million in the quarter and nine months, ended March 31, 2024, respectively. During the quarter and nine months ended March 31, 2025, the Company had total other discrete tax expense of $7.9 million and $7.0 million, respectively, mostly related to the non-deductible portion of the arbitration award resulting in tax expense of $7.8 million. The Company recognized total other immaterial net discrete tax expense of $0.1 million and an other immaterial discrete tax benefit of $3.0 million in the quarter and nine months ended March 31, 2024, respectively.