v3.26.1
Note 16 - Income Taxes
 9 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 16 – INCOME TAXES

 

The Company's effective income tax rate is based on expected income, statutory rates, and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions. For the three months ended March 31, 2026 the anticipated rate is significantly greater than the statutory tax rate because of certain non-deductible transaction costs related to the Royston acquisition included in the projected effective tax rate.

 

  

Three Months Ended

  

Nine Months Ended

 
  

March 31,

  

March 31,

 
  

2026

  

2025

  

2026

  

2025

 

Reconciliation of effective tax rate:

                
                 

Provision for income taxes at the anticipated annual tax rate

  38.8%  32.7%  27.0%  27.9%

Uncertain tax positions

  2.8   1.3   0.8   0.2 

Deferred income tax adjustment

  -   -   -   0.8 

Share-based compensation

  (3.9)  (3.4)  (1.0)  (5.1)

Effective tax rate

  37.7%  30.6%  26.8%  23.8%