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

Income Taxes (Tables)

v3.26.1
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2026
Income Taxes  
Schedule of income before income taxes comprised

Income before income taxes was comprised of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Domestic

​

$

216,622

​

$

86,814

​

$

174,806

Foreign

​

 

24,058

​

 

11,649

​

 

10,883

Earnings before income taxes

​

$

240,680

​

$

98,463

​

$

185,689

​

The provision for income taxes consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Taxes on income consist of:

​

​

​

​

​

​

​

​

​

Current tax provision:

 

​

  ​

 

​

  ​

 

​

  ​

Federal

 

$

15,396

 

$

54,589

 

$

40,228

State

 

​

6,891

 

​

10,402

 

​

4,853

Foreign

 

​

12,852

 

​

11,224

 

​

12,664

Total current tax provision

 

​

35,139

 

​

76,215

 

​

57,745

Deferred tax provision:

 

​

  ​

 

​

  ​

 

​

  ​

Federal

 

​

24,618

 

​

(46,433)

 

​

(28,301)

State

 

​

(1,139)

 

​

(4,303)

 

​

(4,563)

Foreign

 

​

200

 

​

(416)

 

​

(7,297)

Total deferred tax provision

 

​

23,679

 

​

(51,152)

 

​

(40,161)

Total income tax provision

 

$

58,818

 

$

25,063

 

$

17,584

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 ($ amounts in thousands):

​

​

​

​

​

​

​

​

​

Year Ended June 30, 2026

​

​

Amount

​

Percent

U.S. federal statutory tax rate

​

$

50,543

​

21.0

%

State and local income taxes, net of federal effect(1)

​

​

4,053

​

1.7

​

Effect of cross border tax laws:

​

​

​

​

​

​

Foreign-derived intangible income

​

​

(3,024)

​

(1.3)

​

Other

​

​

1,286

​

0.6

​

Tax credits:

​

​

​

​

​

​

R&D tax credits

​

​

(3,097)

​

(1.3)

​

Valuation allowances

​

​

(1,867)

​

(0.8)

​

Nontaxable or nondeductible items:

​

​

​

​

​

​

Executive compensation limitation

​

​

2,766

​

1.1

​

Other

​

​

2,069

​

0.9

​

Other adjustments

​

​

(1,370)

​

(0.6)

​

Foreign tax effects:

​

​

​

​

​

​

Switzerland

​

​

​

​

​

​

Statutory tax rate difference between Switzerland and U.S.

​

​

3,628

​

1.5

​

Change in valuation allowance

​

​

3,333

​

1.4

​

Other

​

​

(543)

​

(0.2)

​

Other foreign jurisdictions

​

​

1,561

​

0.6

​

Changes in unrecognized tax benefits

​

​

(520)

​

(0.2)

​

Effective tax rate

​

$

58,818

​

24.4

%

(1) State and local taxes in Massachusetts, New York, Connecticut, and New York City comprise the majority (greater than 50 percent) of the tax effect in this category.

As previously disclosed for the years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09, the reconciliation of the federal tax calculated at the statutory rate to the actual income taxes provided is as follows:

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Year Ended June 30, 

​

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

Income tax expense at federal statutory rate

​

​

21.0

%

 

21.0

%

State income taxes, net of federal benefit

​

​

2.2

​

 

(0.2)

​

Research and development tax credit

​

​

(3.3)

​

 

(2.2)

​

Foreign tax rate differences

​

​

6.2

​

 

3.1

​

Option exercises

​

​

(3.9)

​

 

(8.8)

​

U.S. taxation of foreign earnings

​

​

0.4

​

 

0.1

​

Foreign derived intangible income

​

​

(12.0)

​

 

(4.8)

​

Foreign withholding tax

​

​

0.1

​

​

(1.2)

​

Executive compensation limitations(1)

​

​

12.5

​

 

2.7

​

Changes in unrecognized tax benefits

​

​

(2.5)

​

​

—

​

Valuation allowance

​

​

17.4

​

​

—

​

Outside basis difference

​

​

(12.9)

​

​

—

​

Other, net

​

​

0.2

​

 

(0.2)

​

Effective tax rate

​

​

25.5

%

 

9.5

%

(1) This includes the impact of the non-deductible portion of a non-recurring arbitration award of 7.9% in fiscal 2025.
Schedule of cash paid for income taxes net of refunds

The cash paid for income taxes (net of refunds received) is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended June 30, 

​

​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

U.S. Federal

​

$

40,562

​

​

​

​

​

​

U.S. State and Local

​

​

9,733

​

​

​

​

​

​

Total U.S.

​

​

50,295

​

​

​

​

​

​

Foreign

​

​

​

​

​

​

​

​

​

United Kingdom

​

​

5,093

​

​

​

​

​

​

Other

​

​

8,761

​

​

​

​

​

​

Total Foreign

​

​

13,854

​

​

​

​

​

​

Cash paid for income taxes (net of refunds received)

​

$

64,149

​

​

​

​

​

​

Cash paid for income taxes (prior to ASU 2023-09)

​

​

​

​

$

74,357

​

$

65,254

Schedule of deferred tax assets and liabilities

Deferred taxes on the Consolidated Balance Sheets consisted of the following temporary differences (in thousands):

​

​

​

​

​

​

​

​

​

June 30, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

Inventory

​

$

14,443

​

$

14,056

Net operating loss carryovers

​

 

26,437

​

 

26,758

Tax credit carryovers

​

 

8,757

​

 

8,706

Capital loss carryforward

​

​

10,617

​

​

—

Excess tax basis in equity investments

​

 

(2,470)

​

 

23,562

Deferred compensation

​

 

17,102

​

 

18,022

Lease liability

​

 

16,499

​

 

15,094

Capitalized R&D

​

​

21,803

​

​

39,694

Derivatives

​

​

3,487

​

​

3,450

Other

​

 

10,767

​

 

10,196

Valuation allowance

​

 

(35,176)

​

 

(33,769)

Deferred tax assets

​

 

92,266

​

 

125,769

​

​

​

​

​

​

​

Intangible asset amortization

​

 

(72,593)

​

 

(84,113)

Depreciation

​

 

(22,468)

​

 

(19,287)

Right of use asset

​

 

(11,496)

​

 

(13,572)

Other

​

 

(5,017)

​

 

(4,659)

Deferred tax liabilities

​

 

(111,574)

​

 

(121,631)

Net deferred income tax (liabilities) assets

​

$

(19,308)

​

$

4,138

​

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, 

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Beginning balance

​

$

3,329

​

$

5,278

​

$

5,291

Decrease in unrecognized tax benefits for prior year positions

​

 

(475)

  ​

 

(1,950)

​

 

—

FX impact

​

​

(19)

​

​

1

​

​

(13)

Ending balances

​

$

2,835

​

$

3,329

​

$

5,278