Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.25.3
Income Taxes
 3 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Income Taxes

Note 11. Income Taxes:

The Company’s effective income tax rate for the first quarter of fiscal 2026 and 2025 was 20.4% and 16.4%, respectively, of consolidated earnings before income taxes, inclusive of discrete items. The change in the Company’s tax rate for the quarter ended September 30, 2025 compared to September 30, 2024 was driven by a mix of net income and timing of discrete items.

The Company recognized total net benefits related to discrete tax items of $3.6 million during the quarter ended September 30, 2025, compared to $3.0 million of net benefits during the quarter ended September 30, 2024. Share-based compensation excess tax benefit contributed $0.5 million in the quarter ended September 30, 2025, compared to $3.3 million in the quarter ended September 30, 2024. The sale of Exosome contributed a tax benefit of $2.6 million during the quarter ended September 30, 2025. There was no comparable activity during the quarter ended September 30, 2024. The Company recognized total other immaterial net discrete tax benefit of $0.5 million in the quarter ended September 30, 2025, compared to $0.3 million of other immaterial net discrete tax expense in the quarter ended September 30, 2024.