Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

Income (loss) before income taxes consisted of the following for the years ended June 30:


(in thousands)	2026			2025			2024
Income (loss) before income taxes:
United States	$	210,443		$	(10,085)		$	(13,544)
International	250,886			142,089			157,994
Total income before income taxes	$	461,329		$	132,004		$	144,450
Current income tax expense (benefit):
Federal	$	8,015		$	2,048		$	(4,003)
State	3,480			346			1,045
International	54,734			43,986			41,784
Total current income tax expense	66,229			46,380			38,826
Deferred income tax expense (benefit):
Federal	$	33,393		$	(7,647)		$	(3,389)
State	5,268			(1,549)			(2,880)
International	6,025			(3,888)			(1,748)
Total deferred income tax expense (benefit):	44,686			(13,084)			(8,017)
Provision for income taxes	$	110,915		$	33,296		$	30,809
Effective tax rate	24.0		%	25.2		%	21.3		%

Reconciliation of Income Taxes and the Provision for Income Taxes

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes in accordance with the guidance in ASU 2023-09 is as follows for the year ended June 30, 2026:


	2026
(in thousands, except percents)	Amount		Percent
Income taxes at U.S. statutory rate	$	96,879	21.0	%
State income taxes, net of federal tax benefit	6,911		1.5
Foreign tax effects
China
Statutory tax rate difference	1,680		0.4
Withholding tax	3,581		0.8
Audit settlement	1,164		0.3
Other	394		0.1
Switzerland
Statutory tax rate difference	(9,907)		(2.1)
Cantonal and municipal taxes	5,651		1.2
Other	(549)		(0.1)
Other foreign jurisdictions	3,940		0.9
Effect of cross-border tax laws	1,450		0.3
Tax credits
Research & development credit	(3,271)		(0.7)
Advanced manufacturing production credit	(1,614)		(0.3)
Nontaxable or nondeductible items	2,382		0.5
Changes in unrecognized tax benefits	2,224		0.5
Total provision for income taxes and effective tax rate	$	110,915	24.0	%

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes prior to the adoption of ASU 2023-09 was as follows for the years ended June 30, 2025 and 2024:


(in thousands)	2025		2024
Income taxes at U.S. statutory rate	$	27,721	$	30,335
State income taxes, net of federal tax benefit	(950)		(1,412)
U.S. income taxes provided on international income	3,220		4,272
Combined tax effects of international income	8,165		10,355

Change in valuation allowance and other uncertain tax positions	(103)		(3,590)

U.S. research and development credit	(2,880)		(4,026)
Advanced manufacturing production credit	(2,941)		(488)

Combined effects of Swiss tax reform	—		(7,801)

Non-deductible executive compensation	417		2,389

Other	647		775

Provision for income taxes	$	33,296	$	30,809

Components of Net Deferred Tax Liabilities and Assets

The components of net deferred tax assets and liabilities were as follows at June 30:


(in thousands)	2026		2025
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	16,028	$	19,756
Inventory valuation and reserves	7,454		8,974
Accrued employee benefits	16,229		13,613
Operating lease liabilities	11,556		10,759
Other accrued liabilities	14,183		12,976
Capitalized research and development costs	20,378		42,947
Tax credits and other carryforwards	976		19,582
Intangible assets	5,557		11,618

Total	92,361		140,225
Valuation allowance	4,946		6,214
Total deferred tax assets	$	87,415	$	134,011
Deferred tax liabilities:
Tax depreciation in excess of book	$	46,068	$	53,337
Operating lease right-of-use assets	11,467		10,710

Unremitted earnings not permanently reinvested	6,795		3,754
Pension benefits	9,362		3,882
Other	3,459		4,464
Total deferred tax liabilities	$	77,151	$	76,147
Total net deferred tax assets	$	10,264	$	57,864

Reconciliation of Unrecognized Tax Benefits Excluding Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30:


(in thousands)	2026		2025		2024
Balance at beginning of year	$	1,694	$	1,309	$	6,935
Increases for tax positions of prior years	1,302		316		—

Increases for tax positions related to the current year	336		77		79

Decreases related to lapse of statute of limitations	(75)		(140)		(5,686)
Foreign currency translation	(79)		132		(19)
Balance at end of year	$	3,178	$	1,694	$	1,309