Income Taxes (Tables)

12 Months Ended

Jun. 30, 2025

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

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%.

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)

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