Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.2
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