Quarterly report [Sections 13 or 15(d)]

Income Taxes

v3.26.1
Income Taxes
 9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Income Taxes

Note 11. Income Taxes:

The Company’s effective income tax rate for the quarter ended March 31, 2026 and 2025 was 28.3% and 41.0%, respectively, of consolidated earnings before income taxes, inclusive of discrete items, and 25.2% and 24.9% for the nine months ended March 31, 2026 and 2025, respectively. The change in the Company’s tax rate for the quarter and nine months ended March 31, 2026 compared to the quarter and nine months ended March 31, 2025 was driven by discrete tax items.

The Company recognized total net tax related to discrete tax items of $0.3 million during the quarter ended March 31, 2026 and a net tax benefit of $3.6 million during the nine months ended March 31, 2026, respectively, compared to total net tax expense of $7.5 million and $2.3 million during the quarter and nine months ended March 31, 2025, respectively. Share-based compensation excess tax benefit was $0.7 million in the quarter and nine months ended March 31, 2026, compared to a benefit of $0.4 million and $4.7 million in the quarter and nine months ended March 31, 2025, respectively. The sale of Exosome Diagnostics contributed a tax benefit of $2.6 million during the nine months ended March 31, 2026. There was no comparable activity in the quarter ended March 31, 2026 and fiscal 2025. During the quarter and nine months ended March 31, 2026, the Company had total other discrete tax of $1.0 million and a benefit of $0.3 million, respectively. The Company recognized total other immaterial net discrete tax expense of $7.9 million and $7.0 million in the quarter and nine months ended March 31, 2025, respectively, mostly related to the non-deductible portion of the arbitration award resulting in tax expense of $7.8 million.