v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income taxes paid (net of refunds received) for the year ended June 30, 2026 were as follows (in thousands):
2026
Federal $34,313 
State22,215 
Foreign:
Australia226,485 
Singapore43,791 
All other jurisdictions30,363 
Total$357,167 
Income before income taxes for the years ended June 30, 2026, 2025 and 2024, was taxed under the following jurisdictions (in thousands):
202620252024
U.S.$597,342 $359,741 $181,107 
Non-U.S.1,322,074 1,317,825 1,083,691 
Income before income taxes$1,919,416 $1,677,566 $1,264,798 
The provision for income taxes is presented below (in thousands):
202620252024
Current:
Federal$40,604 $19,744 $57,103 
State20,213 19,919 17,250 
Non-U.S.331,425 298,170 219,372 
Current income tax expense392,242 337,833 293,725 
Deferred:
Federal43,459 (5,701)(22,915)
State(412)(1,231)(4,632)
Non-U.S.(39,166)(54,058)(22,331)
Deferred income tax expense (benefit)3,881 (60,990)(49,878)
Provision for income taxes$396,123 $276,843 $243,847 
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2026, 2025 and 2024, to pretax income as a result of the following (in thousands):
2026
AmountPercent
Taxes Computed at statutory U.S. Rate$403,077 21.00 %
United States
State income taxes, net of U.S. tax benefit19,801 1.03 
Research & development tax Credits(9,668)(0.50)
Change in valuation allowance11,006 0.57 
Other(2,582)(0.13)
Australia
Effect of non-U.S. tax rates54,889 2.86 
Research & development tax credits(17,158)(0.89)
Other1,219 0.06 
Singapore
Effect of non-U.S. tax rates(148,053)(7.71)
Global minimum tax63,618 3.31 
Other15,672 0.82 
Other Foreign Jurisdictions4,302 0.22 
Provision for income taxes$396,123 20.64 %
20252024
Taxes computed at statutory U.S. rate$352,289 $265,608 
Increase (decrease) in income taxes resulting from:
State income taxes, net of U.S. tax benefit15,590 8,609 
Research and development credit(28,859)(27,786)
Change in valuation allowance20,644 849 
Effect of non-U.S. tax rates(12,225)(15,838)
Foreign tax credits(3,896)(8,293)
Stock-based compensation expense1,735 4,875 
Cessation of business(35,847)— 
Net refunds for prior tax years(29,976)— 
Other(2,612)15,823 
Provision for income taxes$276,843 $243,847 
We reported net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2026 and June 30, 2025, as follows (in thousands):
20262025
Non-current deferred tax asset(1)
$333,171 $253,119 
Non-current deferred tax liability(64,640)(77,682)
Net deferred tax asset$268,531 $175,437 
(1) As a result of the planned sale of the MatrixCare business, we allocated a portion of the Residential Care Software segment non-current deferred tax assets to assets held for sale. See Note 18 – Business Combinations and Divestitures for further information.
The components of our deferred tax assets and liabilities at June 30, 2026 and June 30, 2025, are as follows (in thousands):
20262025
Deferred tax assets:
Employee liabilities$38,979 $37,189 
Tax credit carry overs2,997 1,577 
Inventories24,095 20,523 
Provision for warranties19,906 5,997 
Provision for doubtful debts7,727 4,942 
Net operating loss carryforwards36,445 14,408 
Capital loss carryover38,222 27,454 
Stock-based compensation expense13,081 12,752 
Deferred revenue33,412 31,289 
Research and development capitalization97,987 132,043 
Lease liabilities19,556 21,138 
Hedging contracts185,011 94,626 
Property, plant and equipment4,519 — 
State income taxes4,080 2,883 
Other26,565 18,527 
552,582 425,348 
Less valuation allowance(41,118)(30,072)
Deferred tax assets511,464 395,276 
Deferred tax liabilities:
Goodwill and other intangibles(226,558)(196,698)
Right of use assets(16,375)(18,491)
Property, plant and equipment— (4,650)
Deferred tax liabilities(242,933)(219,839)
Net deferred tax asset$268,531 $175,437 
As of June 30, 2026, we had $26 million of U.S. federal and state net operating loss carryforwards and $10 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2027 or carry forward indefinitely.
The valuation allowance at June 30, 2026 primarily relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $1 million and a capital loss of $40 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized.
A substantial portion of our manufacturing operations and administrative functions in Singapore operate under certain tax holidays and incentive programs that will expire in whole or in part at various dates through June 30, 2030. The end of certain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and incentive programs increased our net income by $37 million ($0.26 per diluted share) for the year ended June 30, 2026, $67 million ($0.46 per diluted share) for the year ended June 30, 2025, and $50 million ($0.34 per diluted share) for the year ended June 30, 2024. The change in impact of these tax holidays and incentives in the year ended June 30, 2026, relates to the enactment of Pillar Two minimum tax legislation in Singapore.
As a result of the Tax Cuts and Jobs Act of 2017, or the TCJA, we have treated all non-U.S. historical earnings as taxable. Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated. In the event our non-U.S. earnings had not been permanently reinvested, approximately $5 million in U.S. state deferred taxes would have been recognized in the consolidated financial statements.
The TCJA also introduced U.S. taxation on certain global intangible low-taxed income, or GILTI. We have elected to account for tax expense attributable to GILTI tax as a period cost when incurred.
In accounting for uncertainty in income taxes, we recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (that is, a likelihood greater than 50
percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for annual periods. We recognize interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on June 30, 2026 is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate.
Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We are currently under audit by the ATO for the 2018 tax year. If any ongoing tax audits are resolved in a manner not consistent with management’s expectations, the result could be a material adjustment to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results.
Tax years 2018 to 2025 remain subject to examination by the major tax jurisdictions in which we are subject to tax.