v3.26.1
Note 12 - Income Taxes
 9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

12)     Income Taxes

 

The Company's effective tax rate from continuing operations for the three and nine months ended  March 31, 2026 was 17.0% and 19.7%, respectively, compared with -29.6% and 1.1% for the equivalent prior year periods, respectively. 

 

The tax rate was impacted in the three and nine months ended  March 31, 2026 by the following items: (i) the recognition of a discrete tax benefit of approximately $6 million related to the release of a valuation allowance previously recorded against the capital loss carryforward deferred tax asset, due to the utilization of such carryforward in connection with the divestiture of Federal Industries; (ii) changes in the geographic mix of earnings; (iii) foreign withholding taxes; and (iv) federal tax credits related to research and development activities.

 

The tax rate was impacted in the three and nine months ended  March 31, 2025 by the following items: (i) a discrete tax benefit related to the release of a previously recorded tax reserve for a one-time tax charge on historical foreign earnings, as the relevant statute of limitations expired during the quarter; (ii) the jurisdictional mix of earnings; (iii) foreign withholding taxes; and (iv) federal research and development tax credits.