Income Taxes

Schedule of effective income tax rate reconciliation

The following is a reconciliation of the federal tax calculated at the statutory rate to the actual income taxes provided ($ amounts in thousands):


	Year Ended June 30, 2026
	Amount		Percent
U.S. federal statutory tax rate	$	50,543	21.0	%
State and local income taxes, net of federal effect⁽¹⁾		4,053	1.7
Effect of cross border tax laws:
Foreign-derived intangible income		(3,024)	(1.3)
Other		1,286	0.6
Tax credits:
R&D tax credits		(3,097)	(1.3)
Valuation allowances		(1,867)	(0.8)
Nontaxable or nondeductible items:
Executive compensation limitation		2,766	1.1
Other		2,069	0.9
Other adjustments		(1,370)	(0.6)
Foreign tax effects:
Switzerland
Statutory tax rate difference between Switzerland and U.S.		3,628	1.5
Change in valuation allowance		3,333	1.4
Other		(543)	(0.2)
Other foreign jurisdictions		1,561	0.6
Changes in unrecognized tax benefits		(520)	(0.2)
Effective tax rate	$	58,818	24.4	%

(1)	State and local taxes in Massachusetts, New York, Connecticut, and New York City comprise the majority (greater than 50 percent) of the tax effect in this category.

As previously disclosed for the years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09, the reconciliation of the federal tax calculated at the statutory rate to the actual income taxes provided is as follows:


	* *	Year Ended June 30,
	* *	2025			2024
Income tax expense at federal statutory rate			21.0	%		21.0	%
State income taxes, net of federal benefit			2.2			(0.2)
Research and development tax credit			(3.3)			(2.2)
Foreign tax rate differences			6.2			3.1
Option exercises			(3.9)			(8.8)
U.S. taxation of foreign earnings			0.4			0.1
Foreign derived intangible income			(12.0)			(4.8)
Foreign withholding tax			0.1			(1.2)
Executive compensation limitations⁽¹⁾			12.5			2.7
Changes in unrecognized tax benefits			(2.5)			—
Valuation allowance			17.4			—
Outside basis difference			(12.9)			—
Other, net			0.2			(0.2)
Effective tax rate			25.5	%		9.5	%

(1)	This includes the impact of the non-deductible portion of a non-recurring arbitration award of 7.9% in fiscal 2025.

Schedule of deferred tax assets and liabilities

Deferred taxes on the Consolidated Balance Sheets consisted of the following temporary differences (in thousands):


		June 30,
	* *	2026			2025
Inventory		$	14,443		$	14,056
Net operating loss carryovers			26,437			26,758
Tax credit carryovers			8,757			8,706
Capital loss carryforward			10,617			—
Excess tax basis in equity investments			(2,470)			23,562
Deferred compensation			17,102			18,022
Lease liability			16,499			15,094
Capitalized R&D			21,803			39,694
Derivatives			3,487			3,450
Other			10,767			10,196
Valuation allowance			(35,176)			(33,769)
Deferred tax assets			92,266			125,769

Intangible asset amortization			(72,593)			(84,113)
Depreciation			(22,468)			(19,287)
Right of use asset			(11,496)			(13,572)
Other			(5,017)			(4,659)
Deferred tax liabilities			(111,574)			(121,631)
Net deferred income tax (liabilities) assets		$	(19,308)		$	4,138