Income Taxes (Tables)
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12 Months Ended |
Jun. 30, 2026 |
| Income Taxes |
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| Schedule of components of income before income taxes |
| | | | | | | | | | For the Year Ended June 30 | | 2026 | | 2025 | | 2024 | Domestic | | $ | 57,480 | | $ | 3,304 | | $ | (22,820) | Foreign | | | 79,866 | | | 64,689 | | | 33,736 | Income before income taxes | | $ | 137,346 | | $ | 67,993 | | $ | 10,916 |
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| Schedule of components of the provision for income taxes |
| | | | | | | | | | For the Year Ended June 30 | | 2026 | | 2025 | | 2024 | Current provision: | | | | | | | | | | Federal | | $ | 3,555 | | $ | 5,557 | | $ | 3,037 | State and local | | | 2,789 | | | 2,448 | | | 1,718 | Foreign | | | 24,056 | | | 16,477 | | | 15,740 | Total current provision | | | 30,400 | | | 24,482 | | | 20,495 | Deferred provision (benefit): | | | | | | | | | | Federal | | | 7,951 | | | (4,412) | | | (4,755) | State and local | | | - | | | (1,521) | | | (1,523) | Foreign | | | (15) | | | 1,171 | | | (4,468) | Change in foreign valuation allowances | | | (710) | | | 9 | | | (1,249) | Total deferred provision (benefit) | | | 7,226 | | | (4,753) | | | (11,995) | Provision for income taxes | | $ | 37,626 | | $ | 19,729 | | $ | 8,500 |
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| Schedule of reconciliation of the federal statutory rate to the effective tax rate |
The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate for the year ended June 30, 2026: | | | | | | | For the Year Ended June 30, 2026 | | | Total | | % | | U.S. federal statutory income tax rate | | $ | 28,843 | | 21.0 | % | United States: | | | | | | | State and local income taxes, net of federal income tax benefit(1) | | | 2,190 | | 1.6 | % | Effects of cross border tax laws: | | | | | | | Global intangible low-taxed income, net | | | 2,036 | | 1.5 | % | Foreign-derived intangible income | | | (1,935) | | (1.4) | % | Other | | | 1,391 | | 1.0 | % | Tax credits: | | | | | | | Research and development tax credits | | | (1,223) | | (0.9) | % | Other | | | (434) | | (0.3) | % | Non-taxable or non-deductible items | | | 1,003 | | 0.7 | % | Other | | | (1,837) | | (1.3) | % | Foreign tax effects: | | | | | | | Israel: | | | | | | | Effect of rates different than statutory | | | 470 | | 0.3 | % | Effect of Israel reduced rate | | | (1,728) | | (1.3) | % | Other | | | 173 | | 0.1 | % | Brazil: | | | | | | | Effect of rates different than statutory | | | 4,514 | | 3.3 | % | Other | | | (996) | | (0.7) | % | Argentina: | | | | | | | Effect of rates different than statutory | | | 1,145 | | 0.8 | % | Other | | | 405 | | 0.3 | % | Other foreign jurisdictions | | | 820 | | 0.6 | % | Changes in unrecognized tax benefits | | | 2,789 | | 2.0 | % | Provision for income taxes and effective tax rate | | $ | 37,626 | | 27.4 | % |
| (1) | Minnesota, California, and Illinois, comprise the majority (greater than 50%) of domestic state and local taxes, net of federal benefit. |
Reconciliations of the federal statutory rate to the Company’s effective tax rate were as follows for the years ended June 30, 2025 and 2024: | | | | | | For the Year Ended June 30 | | 2025 | | 2024 | | U.S. federal statutory income tax rate | | 21.0 | % | 21.0 | % | State and local taxes, net of federal benefit | | 0.6 | | (1.1) | | Taxes on non-U.S. income | | (0.6) | | 9.9 | | Changes in uncertain tax positions | | — | | 30.7 | | Global intangible low-taxed income | | 4.7 | | 18.3 | | Recognition of federal and foreign tax credits | | (13.7) | | (10.6) | | Change in valuation allowance | | (0.1) | | (11.4) | | Foreign-derived intangible income | | — | | (3.8) | | Non-U.S. withholding and related taxes, net, on planned repatriation | | 13.0 | | 28.4 | | Impact of foreign tax credit regulations and related changes | | — | | (20.0) | | Non-deductible operating expenses | | 2.9 | | 11.3 | | Non-deductible acquisition costs | | — | | 4.3 | | Other | | 1.1 | | 0.9 | | Effective income tax rate | | 29.0 | % | 77.9 | % |
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| Schedule of deferred tax assets and liabilities |
The tax effects of significant temporary differences that comprise deferred tax assets and liabilities were: | | | | | | | As of June 30 | | 2026 | | 2025 | Deferred tax assets: | | | | | | | Employee-related accruals | | $ | 6,632 | | $ | 5,940 | Inventory | | | 6,472 | | | 10,681 | Environmental remediation | | | 652 | | | 783 | Net operating loss carry forwards–domestic | | | 864 | | | 689 | Net operating loss carry forwards–foreign | | | 921 | | | 2,705 | Operating lease liabilities | | | 7,073 | | | 8,399 | R&D cost capitalization | | | 7,380 | | | 8,647 | Interest expense limitation | | | 426 | | | 3,900 | Accrued expenses | | | 10,450 | | | 11,001 | Acquisition related expenses | | | 2,051 | | | 2,161 | Other | | | 2,017 | | | 4,703 | | | | 44,938 | | | 59,609 | Valuation allowance | | | (569) | | | (1,279) | | | | 44,369 | | | 58,330 | Deferred tax liabilities: | | | | | | | Property, plant and equipment and intangible assets | | | (16,961) | | | (18,989) | Operating lease ROU assets | | | (6,636) | | | (7,939) | Prepaid expenses | | | (1,651) | | | (1,728) | Unrealized foreign exchange | | | (1,188) | | | (1,601) | Non-U.S. withholding and related taxes, net, on planned repatriation | | | (250) | | | (250) | Other | | | (4,641) | | | (6,472) | | | | (31,327) | | | (36,979) | Net deferred tax asset | | $ | 13,042 | | $ | 21,351 |
Deferred taxes are included in the consolidated balance sheets as follows: | | | | | | | As of June 30 | | 2026 | | 2025 | Other assets | | $ | 17,011 | | $ | 25,548 | Other liabilities | | | (3,969) | | | (4,197) | | | $ | 13,042 | | $ | 21,351 |
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| Schedule of the valuation allowance established against deferred tax assets |
| | | | | | | | | | As of June 30 | | 2026 | | 2025 | | 2024 | Balance at beginning of period | | $ | 1,279 | | $ | 1,288 | | $ | 2,598 | Benefit for income taxes | | | (710) | | | (9) | | | (1,310) | Balance at end of period | | $ | 569 | | $ | 1,279 | | $ | 1,288 |
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| Schedule of income taxes paid |
| | | | For the Year Ended June 30 | | | 2026 | United States: | | | | Federal | | $ | - | State and local | | | 1,549 | Total United States | | | 1,549 | Foreign: | | | | Brazil | | | 8,559 | Israel | | | 4,348 | Mexico | | | 2,396 | China | | | 1,386 | Other | | | 2,385 | Total Foreign | | | 19,074 | Total income taxes paid, net of refunds | | $ | 20,623 |
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| Schedule of the reconciliation of the beginning and ending amounts of unrecognized tax benefits |
| | | | | | | | | | As of June 30 | | 2026 | | 2025 | | 2024 | Unrecognized tax benefits–beginning of period | | $ | 12,470 | | $ | 11,861 | | $ | 9,449 | Tax position changes–current period | | | 3,255 | | | (809) | | | 2,066 | Tax position changes–prior periods, including settlements with tax authorities | | | (11) | | | 541 | | | 615 | Lapse of statute of limitations | | | (1,060) | | | (637) | | | (58) | Effect of changes in exchange rates | | | 2,478 | | | 1,514 | | | (211) | Unrecognized tax benefits–end of period | | | 17,132 | | | 12,470 | | | 11,861 | Interest and penalties–end of period | | | 3,909 | | | 2,804 | | | 1,689 | Total liabilities related to uncertain tax positions | | $ | 21,041 | | $ | 15,274 | | $ | 13,550 |
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