Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2025 |
Income Taxes |
|
Schedule of income before income taxes comprised |
Income before income taxes was comprised of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
2023 |
Domestic |
|
$ |
86,814 |
|
$ |
174,806 |
|
$ |
288,458 |
Foreign |
|
|
11,649 |
|
|
10,883 |
|
|
50,201 |
Earnings before income taxes |
|
$ |
98,463 |
|
$ |
185,689 |
|
$ |
338,659 |
The provision for income taxes consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
2023 |
Taxes on income consist of: |
|
|
|
|
|
|
|
|
|
Current tax provision: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
54,589 |
|
$ |
40,228 |
|
$ |
59,810 |
State |
|
|
10,402 |
|
|
4,853 |
|
|
12,753 |
Foreign |
|
|
11,224 |
|
|
12,664 |
|
|
10,453 |
Total current tax provision |
|
|
76,215 |
|
|
57,745 |
|
|
83,016 |
Deferred tax provision: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(46,433) |
|
|
(28,301) |
|
|
(28,829) |
State |
|
|
(4,303) |
|
|
(4,563) |
|
|
(2,414) |
Foreign |
|
|
(416) |
|
|
(7,297) |
|
|
1,444 |
Total deferred tax provision |
|
|
(51,152) |
|
|
(40,161) |
|
|
(29,799) |
Total income tax provision |
|
$ |
25,063 |
|
$ |
17,584 |
|
$ |
53,217 |
|
Schedule of effective income tax rate reconciliation |
The following is a reconciliation of the federal tax calculated at the statutory rate to the actual income taxes provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense at federal statutory rate |
|
|
21.0 |
% |
|
21.0 |
% |
|
21.0 |
% |
State income taxes, net of federal benefit |
|
|
2.2 |
|
|
(0.2) |
|
|
2.5 |
|
Research and development tax credit |
|
|
(3.3) |
|
|
(2.2) |
|
|
(1.3) |
|
Foreign tax rate differences |
|
|
6.2 |
|
|
3.1 |
|
|
(0.6) |
|
Option exercises |
|
|
(3.9) |
|
|
(8.8) |
|
|
(3.3) |
|
U.S. taxation of foreign earnings |
|
|
0.4 |
|
|
0.1 |
|
|
0.4 |
|
Foreign derived intangible income |
|
|
(12.0) |
|
|
(4.8) |
|
|
(3.4) |
|
Foreign withholding tax |
|
|
0.1 |
|
|
(1.2) |
|
|
1.5 |
|
Executive compensation limitations(1) |
|
|
12.5 |
|
|
2.7 |
|
|
0.8 |
|
Changes in unrecognized tax benefits |
|
|
(2.5) |
|
|
— |
|
|
— |
|
Valuation allowance |
|
|
17.4 |
|
|
— |
|
|
— |
|
Outside basis difference |
|
|
(12.9) |
|
|
— |
|
|
— |
|
Other, net |
|
|
0.2 |
|
|
(0.2) |
|
|
(1.9) |
|
Effective tax rate |
|
|
25.5 |
% |
|
9.5 |
% |
|
15.7 |
% |
(1) |
This includes the impact of the non-deductible portion of a non-recurring arbitration award of 7.9%.
|
|
Schedule of deferred tax assets and liabilities |
Deferred taxes on the Consolidated Balance Sheets consisted of the following temporary differences (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2025 |
|
2024 |
|
|
|
|
|
|
|
Inventory |
|
$ |
14,056 |
|
$ |
9,675 |
Net operating loss carryovers |
|
|
26,758 |
|
|
25,065 |
Tax credit carryovers |
|
|
8,706 |
|
|
9,118 |
Excess tax basis in investments |
|
|
23,562 |
|
|
1,115 |
Deferred compensation |
|
|
18,022 |
|
|
16,628 |
Lease liability |
|
|
15,094 |
|
|
19,501 |
Capitalized R&D |
|
|
39,694 |
|
|
36,151 |
Held-for-sale asset impairment |
|
|
— |
|
|
5,216 |
Derivatives |
|
|
3,450 |
|
|
— |
Other |
|
|
10,196 |
|
|
6,119 |
Valuation allowance |
|
|
(33,769) |
|
|
(19,265) |
Deferred tax assets |
|
|
125,769 |
|
|
109,323 |
|
|
|
|
|
|
|
Intangible asset amortization |
|
|
(84,113) |
|
|
(120,648) |
Depreciation |
|
|
(19,287) |
|
|
(20,448) |
Right of use asset |
|
|
(13,572) |
|
|
(17,876) |
Derivatives |
|
|
— |
|
|
(2,516) |
Other |
|
|
(4,659) |
|
|
(3,698) |
Deferred tax liabilities |
|
|
(121,631) |
|
|
(165,186) |
Net deferred income tax assets (liabilities) |
|
$ |
4,138 |
|
$ |
(55,863) |
|
Schedule of unrecognized tax benefits roll forward |
The following is a reconciliation of the beginning and ending balance of unrecognized tax benefits (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
2025 |
|
2024 |
|
2023 |
Beginning balance |
|
$ |
5,278 |
|
$ |
5,291 |
|
$ |
5,302 |
Decrease in unrecognized tax benefits for prior year positions |
|
|
(1,950) |
|
|
— |
|
|
— |
FX impact |
|
|
1 |
|
|
(13) |
|
|
(11) |
Ending balances |
|
$ |
3,329 |
|
$ |
5,278 |
|
$ |
5,291 |
|