v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of Canadian federal income tax rate with our effective income tax rate is as follows:
Year Ended June 30, 2026
Amount%
Expected income tax expense at Canadian Federal statutory income tax rate (1)
Canadian Federal tax$128,832 15.0 %
Canadian Provincial tax (2)
33,530 3.9 %
Foreign tax effects
United States
Effect of foreign tax rate differences7,794 0.9 %
Net controlled foreign corporation tested income (NCTI)14,913 1.7 %
Foreign-derived deduction-eligible income (FDDEI)(8,670)(1.0)%
Effect of foreign tax credits(27,687)(3.2)%
Includable foreign income16,004 1.9 %
 Impact of reorganizations12,790 1.5 %
 Other items11,552 1.3 %
United Kingdom
Effect of foreign tax rate differences6,356 0.7 %
Includable foreign deductions(19,534)(2.3)%
Difference in tax filing positions from provision6,450 0.8 %
Impact of reorganizations9,170 1.1 %
Change in valuation allowance6,769 0.8 %
Other items271 — %
Other foreign jurisdictions56,630 6.6 %
Effect of changes in unrecognized tax benefits(16,126)(1.9)%
Other items(23,430)(2.7)%
Provision for income taxes$215,614 25.1 %
______________________
(1)This represents the Canadian federal statutory income tax rate, which is 15% after a 13% general tax reduction and 10% federal abatement are applied to the 38% basic rate.
(2)Provincial taxes are primarily Ontario.
A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate for the years ended June 30, 2025 and 2024 were as follows:
Year Ended June 30,
20252024
Expected statutory rate26.50 %26.50 %
Expected provision for income taxes$127,749 $193,263 
Effect of foreign tax rate differences(9,275)(18,338)
Change in valuation allowance (4,040)71,328 
Effect of permanent differences24,908 11,864 
Effect of changes in unrecognized tax benefits (32,387)(4,570)
Effect of withholding taxes7,479 18,680 
Effect of tax credits (55,656)(84,244)
Effect of accrual for undistributed earnings4,072 (12,421)
Effect of U.S. BEAT — 17,927 
Difference in tax filing positions from provision (37,053)(2,661)
Impact of internal reorganizations 5,037 59,761 
Other items15,171 13,423 
Provision for income taxes$46,005 $264,012 
Schedule of Supplemental Disclosure of Cash Flow Information
The Company adopted ASU 2023-09 on a prospective basis for the year ended June 30, 2026 and has included the following table as a result of adoption, which presents income taxes paid (net of refunds received) disaggregated by individual jurisdiction in which income taxes paid (net of refunds received) was greater than or equal to 5% of total income taxes paid (net of refunds received). For the years ended June 30, 2025 and 2024, see Note 22 “Supplemental Cash Flow Disclosures” for cash paid for income taxes.
Year Ended June 30,
2026
Federal$35,485 
Provincial17,996 
Foreign
United States134,297 
United Kingdom15,519 
Germany22,363 
India16,251 
Other foreign jurisdictions58,151 
Total cash paid for income taxes, net$300,062 
Year Ended June 30,
202620252024
Cash paid during the period for interest$321,694 $352,383 $533,866 
Cash received during the period for interest41,976 48,324 45,465 
Cash paid during the period for income taxes300,062 411,570 294,769 
Schedule of Income before Income Tax, Domestic and Foreign
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended June 30,
202620252024
Domestic income (loss)$361,295 $248,942 $359,865 
Foreign income (loss)497,582 233,129 369,431 
Income before income taxes$858,877 $482,071 $729,296 
Schedule of Components of Income Tax Expense (Benefit) The provision for (recovery of) income taxes consisted of the following:
Year Ended June 30,
2026
Current income taxes (recoveries):
Federal$30,508 
Provincial6,089 
Foreign205,219 
Total current income taxes (recoveries)241,816 
Deferred income taxes (recoveries):
Federal2,229 
Provincial27,441 
Foreign(55,872)
Total deferred income taxes (recoveries)(26,202)
Provision for income taxes$215,614 
The provision for (recovery of) income taxes for the years ended June 2025 and June 2024 consisted of the following:
Year Ended June 30,
20252024
Current income taxes (recoveries):
Domestic$13,769 $76,571 
Foreign170,852 329,712 
Total current income taxes (recoveries)184,621 406,283 
Deferred income taxes (recoveries):
Domestic44,974 17,205 
Foreign(183,590)(159,476)
Total deferred income taxes (recoveries)(138,616)(142,271)
Provision for income taxes$46,005 $264,012 
Schedule of Deferred Tax Assets and Liabilities
The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:
As of June 30,
20262025
Deferred tax assets
Non-capital loss carryforwards$644,940 $676,446 
Capital loss carryforwards2,756 5,833 
Interest expense carryforwards141,873 230,658 
Capitalized scientific research and development expenses493,177 451,163 
Restructuring costs and other reserves16,741 18,678 
Capitalized inventory and intangible expenses151,081 123,010 
Tax credits159,914 179,343 
Lease liabilities26,568 36,975 
Deferred revenue54,224 22,759 
Share-based compensation31,717 40,464 
Derivatives57,099 73,074 
Other66,832 62,799 
Total deferred tax asset1,846,922 1,921,202 
Valuation allowance(620,736)(651,779)
Deferred tax liabilities
Depreciation and amortization(190,713)(247,606)
Right of use assets(13,329)(22,754)
Other(84,755)(60,002)
Deferred tax liabilities(288,797)(330,362)
Net deferred tax asset$937,389 $939,061 
Comprised of:
Long-term assets1,077,003 1,080,575 
Long-term liabilities(139,614)(141,514)
Net deferred tax asset$937,389 $939,061 
Schedule of Unrecognized Tax Benefits Roll Forward
The aggregate changes in the balance of our gross unrecognized tax benefits (including interest and penalties) were as follows:
Unrecognized tax benefits as of June 30, 2024
$180,365 
Increases on account of current year positions— 
Increases on account of prior year positions8,024 
Decreases on account of prior year positions(2,612)
Decreases due to settlements with tax authorities(9,569)
Decreases due to lapses of statutes of limitations(36,417)
Unrecognized tax benefits as of June 30, 2025
139,791 
Increases on account of current year positions2,607 
Increases on account of prior year positions5,609 
Decreases on account of prior year positions(3,609)
Decreases due to settlements with tax authorities(3,502)
Decreases due to lapses of statutes of limitations(19,560)
Unrecognized tax benefits as of June 30, 2026
$121,336 
Schedule of Interest and Penalties Related to Liabilities for Income Tax Expense For the years ended June 30, 2026, 2025 and 2024, respectively, we recognized the following amounts as income tax-related interest expense and penalties:
Year Ended June 30,
202620252024
Interest expense (income)$(4,105)$(5,290)$7,778 
Penalties expense(704)(2,175)964 
Total$(4,809)$(7,465)$8,742 
Schedule of Interest Accrued and Penalties Accrued Related to Income Tax Expense
The following amounts have been accrued on account of income tax-related interest expense and penalties:
As of June 30, 2026As of June 30, 2025
Interest expense accrued (1)
$10,581 $14,686 
Penalties accrued (1)
$1,471 $2,121 
______________________
(1)These balances are primarily included within Long-term income taxes payable within the Consolidated Balance Sheets.