Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Summary of Components of Loss Before Income Taxes |
The components of loss before income taxes and equity in net loss of equity-method investees were as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
Domestic |
|
$ |
(142,731 |
) |
|
$ |
(456,528 |
) |
Foreign |
|
|
(164,049 |
) |
|
|
(57,203 |
) |
Total |
|
$ |
(306,780 |
) |
|
$ |
(513,731 |
) |
|
| Summary of the Provision (Benefit) for Income Taxes |
The provision (benefit) for income taxes consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
Current: |
|
|
|
|
|
|
Federal |
|
$ |
962 |
|
|
$ |
3,686 |
|
State and local |
|
|
411 |
|
|
|
1,260 |
|
Foreign |
|
|
4,865 |
|
|
|
14,774 |
|
|
|
|
6,238 |
|
|
|
19,720 |
|
Deferred: |
|
|
|
|
|
|
Federal |
|
|
(4,229 |
) |
|
|
2,642 |
|
State and local |
|
|
(2,578 |
) |
|
|
(5,599 |
) |
Foreign |
|
|
(1,639 |
) |
|
|
(1,466 |
) |
|
|
|
(8,446 |
) |
|
|
(4,423 |
) |
Total |
|
$ |
(2,208 |
) |
|
$ |
15,297 |
|
|
| Summary of Income Taxes Paid Net of Refunds Received |
The following table provides income taxes paid (net of refunds received) by primary jurisdiction for fiscal year 2026.
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
Federal |
|
$ |
121 |
|
State and Local |
|
|
137 |
|
Foreign |
|
|
|
United Kingdom |
|
|
7,527 |
|
Cyprus |
|
|
2,101 |
|
Germany |
|
|
1,836 |
|
Canada |
|
|
1,552 |
|
Ireland |
|
|
765 |
|
Other |
|
|
658 |
|
|
|
$ |
14,697 |
|
|
| Schedule of Reconciliation of U.S Federal Statutory Rate to Effective Rate on (loss) Income before (Benefit) Provision for Income Taxes |
The items accounting for differences between income taxes computed at the federal statutory rate and the provision recorded for income taxes are as follows (in millions, except percentages):
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
|
% |
|
Expected United States federal income tax at statutory rate |
|
$ |
(64,424 |
) |
|
|
21.0 |
% |
State income taxes, net of federal benefit(a) |
|
|
(2,413 |
) |
|
|
0.8 |
% |
Foreign tax effects: |
|
|
|
|
|
|
UK |
|
|
|
|
|
|
Impairment of goodwill(b) |
|
|
19,803 |
|
|
|
(6.5 |
)% |
Change in valuation allowance |
|
|
11,162 |
|
|
|
(3.6 |
)% |
Statutory tax rate difference between the U.K. and the U.S. |
|
|
(4,689 |
) |
|
|
1.5 |
% |
UK other |
|
|
548 |
|
|
|
(0.2 |
)% |
Canada |
|
|
|
|
|
|
Change in valuation allowance |
|
|
4,119 |
|
|
|
(1.3 |
)% |
Canada other |
|
|
(1,958 |
) |
|
|
0.6 |
% |
Austria |
|
|
|
|
|
|
Impairment of goodwill(b) |
|
|
7,522 |
|
|
|
(2.5 |
)% |
Austria other |
|
|
(416 |
) |
|
|
0.1 |
% |
All other foreign jurisdictions |
|
|
1,588 |
|
|
|
(0.5 |
)% |
Cross-border tax laws |
|
|
(1,283 |
) |
|
|
0.4 |
% |
Nontaxable or nondeductible Items: |
|
|
|
|
|
|
Gain on sale of business |
|
|
8,547 |
|
|
|
(2.8 |
)% |
Impairment of goodwill(b) |
|
|
5,984 |
|
|
|
(2.0 |
)% |
R&W insurance proceeds |
|
|
(5,439 |
) |
|
|
1.8 |
% |
Other |
|
|
4,892 |
|
|
|
(1.6 |
)% |
Change in valuation allowance(c) |
|
|
12,949 |
|
|
|
(4.2 |
)% |
Change in unrecognized tax benefits(d) |
|
|
1,300 |
|
|
|
(0.4 |
)% |
Provision for income taxes |
|
$ |
(2,208 |
) |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2025 |
|
|
% |
|
Expected United States federal income tax at statutory rate |
|
$ |
(107,884 |
) |
|
|
21.0 |
% |
State income taxes, net of federal benefit |
|
|
(11,431 |
) |
|
|
2.2 |
% |
U.S. tax on foreign earnings |
|
|
3,466 |
|
|
|
(0.7 |
)% |
Foreign income at different rates |
|
|
(6,538 |
) |
|
|
1.3 |
% |
Change in valuation allowance(c) |
|
|
28,757 |
|
|
|
(5.6 |
)% |
Change in reserves for uncertain tax positions(d) |
|
|
25,863 |
|
|
|
(5.0 |
)% |
Impairment of goodwill and intangibles(b) |
|
|
77,615 |
|
|
|
(15.2 |
)% |
Gain on disposal of subsidiary |
|
|
2,104 |
|
|
|
(0.4 |
)% |
Stock-based compensation |
|
|
393 |
|
|
|
(0.1 |
)% |
Return to provision |
|
|
(301 |
) |
|
|
0.1 |
% |
Loss on capital asset |
|
|
1,004 |
|
|
|
(0.2 |
)% |
Other |
|
|
2,249 |
|
|
|
(0.4 |
)% |
Provision for income taxes |
|
$ |
15,297 |
|
|
|
(3.0 |
)% |
(a) State taxes in California, Illinois, Pennsylvania, Texas, and New Jersey in aggregate make up the majority (greater than 50 percent) of the tax effect of this category. (b) The Company recorded impairments of goodwill and certain intangible assets and most of the impairments did not have associated deferred tax liabilities. Therefore, the impact of these impairments is reflected as an impact to the effective tax rate. (c) The Company estimated that it would not be able to utilize certain of its federal tax credit, federal tax losses and state tax loss carryovers due to its history of pretax losses and inability to carry back tax losses or credits for refunds. This negative evidence resulted in the Company increasing the valuation allowance on worldwide deferred tax assets of separately reported items in the year ended June 30, 2026 by $28,230 and in the year ended June 30, 2025 by $28,757. (d) The Company recorded an unrecognized tax benefit that may not be fully supported under audit.
|
| Components of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss and tax credit carryforwards |
|
$ |
87,270 |
|
|
$ |
74,121 |
|
Basis difference on inventory |
|
|
1,936 |
|
|
|
4,301 |
|
Reserves not currently deductible |
|
|
7,078 |
|
|
|
6,014 |
|
Basis difference on intangible assets |
|
|
39,561 |
|
|
|
2,647 |
|
Lease ROU liability |
|
|
10,713 |
|
|
|
15,905 |
|
Other comprehensive income |
|
|
1,975 |
|
|
|
2,302 |
|
Stock-based compensation |
|
|
569 |
|
|
|
1,342 |
|
Other |
|
|
20,044 |
|
|
|
19,010 |
|
Total deferred tax asset before valuation allowance |
|
|
169,146 |
|
|
|
125,642 |
|
Valuation allowance |
|
|
(136,002 |
) |
|
|
(96,383 |
) |
Total deferred tax asset |
|
|
33,144 |
|
|
|
29,259 |
|
Deferred tax liabilities |
|
|
|
|
|
|
Basis difference on property and equipment |
|
|
13,068 |
|
|
|
18,198 |
|
Basis difference on inventory |
|
|
323 |
|
|
|
424 |
|
Basis difference on intangible assets |
|
|
38,524 |
|
|
|
31,927 |
|
Lease ROU Assets |
|
|
10,258 |
|
|
|
14,931 |
|
Unremitted earnings of foreign subsidiaries |
|
|
2,294 |
|
|
|
3,980 |
|
Other |
|
|
— |
|
|
|
131 |
|
Total deferred tax liability |
|
|
64,467 |
|
|
|
69,591 |
|
Net deferred tax liability(a) |
|
$ |
(31,323 |
) |
|
$ |
(40,332 |
) |
(a) A deferred tax asset of $1,607 and nil is included within Other Assets, for fiscal years 2026 and 2025, respectively.
|
| Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity |
Unrecognized tax benefits activity, including interest and penalties, is summarized below:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2026 |
|
|
2025 |
|
Balance at beginning of year |
|
$ |
51,923 |
|
|
$ |
26,060 |
|
Additions based on tax positions related to the current year |
|
|
187 |
|
|
|
24,555 |
|
Additions based on tax positions related to prior years |
|
|
1,266 |
|
|
|
1,308 |
|
Reductions due to lapse in statute of limitations and settlements |
|
|
(154 |
) |
|
|
— |
|
Balance at end of year |
|
$ |
53,222 |
|
|
$ |
51,923 |
|
|