v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before income taxes for the Company's domestic and foreign operations was as follows:
 
Years Ended June 30,
($ in millions)202620252024
Domestic$645.3 $454.5 $224.1 
Foreign10.9 12.8 (12.5)
Income before income taxes$656.2 $467.3 $211.6 
 
The expense (benefit) for income taxes from continuing operations consisted of the following:
Years Ended June 30,
($ in millions)202620252024
Current:
Federal$81.6 $89.8 $30.4 
State19.2 14.5 4.2 
Foreign4.4 4.4 3.8 
Total current105.2 108.7 38.4 
Deferred:
Federal20.5 (16.1)(10.1)
State— (1.3)(2.7)
Foreign0.7 — (0.5)
Total deferred21.2 (17.4)(13.3)
Total income tax expense$126.4 $91.3 $25.1 

The reconciliation of the U.S. federal statutory income tax rate and the effective tax rate for the fiscal year ended June 30, 2026, after the adoption of ASU 2023-09 was as follows:
Year Ended June 30, 2026
($ in millions)AmountPercent
Income tax provision at the federal statutory rate$137.8 21.0 %
State and local income taxes, net of federal (a)16.0 2.4 
Effects of cross-border tax laws:
Foreign derived intangible income deduction(8.2)(1.2)
Tax credits:
Research and development tax credit(5.6)(0.8)
Non-taxable or non-deductible items:
Share-based compensation(17.5)(2.7)
Non-deductible compensation5.4 0.8 
Other non-taxable or non-deductible items(4.3)(0.6)
Foreign tax effects2.8 0.4 
Income tax expense and effective tax rate$126.4 19.3 %
(a)    State taxes in California, Illinois and Pennsylvania comprise over 50 percent of the tax effect in this category.
The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rates for fiscal years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09:
Years Ended June 30,
(% of pre-tax income)20252024
Statutory federal income tax rate21.0 %21.0 %
State income taxes, net of federal tax benefit2.4 2.7 
Foreign tax rate differential0.1 (0.3)
Research and development tax credit(0.9)(1.6)
Foreign derived intangible income deduction(1.6)(1.8)
Adjustments of prior years' income taxes(0.1)— 
Non-deductible goodwill impairment— 1.4 
Tax benefit related to closure of Additive operations— (8.7)
Non-taxable income(0.1)(0.5)
Non-deductible expenses0.4 6.4 
Non-deductible compensation1.2 1.6 
Share-based compensation(2.7)(3.2)
Changes in valuation allowances— (4.7)
Interest on prior tax positions(0.2)(0.4)
Effective income tax rate19.5 %11.9 %
 
Deferred taxes are recorded for temporary differences between the carrying amounts of assets and liabilities and their tax bases. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company had state net operating loss carryforwards of $125.4 million expiring between fiscal years 2027 and 2046. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be revised in the near term if estimates of future taxable income during the carryforward period change.

Valuation allowances increased by $2.3 million during fiscal year 2026 as a result of increases in net operating losses incurred in certain jurisdictions for which no tax benefit was recognized.
The significant components of deferred tax assets and liabilities that are recorded in the consolidated balance sheets are summarized in the table below:
June 30,
($ in millions)20262025
Deferred tax assets:
Pensions$12.8 $26.3 
Postretirement provisions5.6 11.3 
Non-equity compensation8.8 9.6 
Net operating loss carryforwards8.4 8.3 
Tax credit carryforwards0.8 1.6 
Operating lease liabilities6.7 8.1 
Other20.5 21.0 
Gross deferred tax assets63.6 86.2 
Valuation allowances(4.9)(2.6)
Total deferred tax assets58.7 83.6 
Deferred tax liabilities:
Depreciation215.0 198.4 
Intangible assets0.2 2.4 
Inventories26.8 28.3 
Operating lease right-of-use assets5.1 6.4 
Other3.0 3.1 
Total deferred tax liabilities250.1 238.6 
Deferred tax liabilities, net$191.4 $155.0 

Income taxes paid, net of amounts received as refunds, were as follows:
Years Ended June 30,
($ in millions)202620252024
Federal$60.1 $79.3 $49.2 
State:
State, other11.1 8.4 4.4 
California8.1 2.0 4.4 
Foreign5.5 3.9 4.8 
Income taxes paid, net (a)$84.8 $93.6 $62.8 
(a)    There were no other individual jurisdictions with cash taxes paid that equaled or exceeded 5 percent of total income taxes paid, net.

The Company does not have unrecognized tax benefits as of June 30, 2026, 2025 and 2024. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.

All years prior to fiscal year 2018 have been settled with the Internal Revenue Service and with most significant state, local and foreign tax jurisdictions.
The Company asserts that substantially all undistributed earnings from foreign subsidiaries are not considered indefinitely reinvested. The potential tax implications from the distribution of these earnings are expected to be limited to withholding taxes in certain jurisdictions and are not expected to materially impact the consolidated financial statements.