Income Taxes |
3 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Income taxes for the quarters ended September 30, 2026 and 2025 have been included in the accompanying condensed consolidated financial statements using an estimated annual effective tax rate. In addition to applying the estimated annual effective tax rate to pre-tax income, the Company includes certain items treated as discrete events to arrive at an estimated overall tax provision. During the quarter ended September 30, 2026, a discrete net tax benefit of $0.2 million was recorded, which is attributable to stock compensation, partially offset by certain tax expenses. There were no material discrete items recorded during the quarter ended September 30, 2025. The Company’s effective tax rate of 27.1% and 26.4% for the quarters ended September 30, 2026 and 2025 differs from the current federal statutory rate of 21% primarily as a result of income derived from tax jurisdictions with varying income tax rates, nondeductible expenses, and state income tax rates. As of September 30, 2026, the Company maintains the ability to access the earnings of foreign subsidiaries. The Company has determined that there is no material deferred tax liability for federal, state and withholding tax related to undistributed earnings. There is no certainty to the timing of any future distributions of such earnings to the U.S. in whole or in part. The Company had approximately $3.9 million and $1.3 million of total gross unrecognized tax benefits at September 30, 2026 and June 30, 2026, respectively. At September 30, 2026, approximately $3.6 million of this total represents the amount of unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate. The Company’s policy is to recognize interest and penalties related to income tax matters in income tax expense. The Company had approximated $3.5 million and $0.6 million accrued for interest and penalties at September 30, 2026 and June 30, 2026, respectively. The Company has recorded an unrecognized tax benefit, interest, and penalties related to pre-acquisition tax positions of MicroAge. Pursuant to the purchase agreement, the Company is entitled to indemnification from the seller for these matters and has recorded a corresponding indemnification asset. The Company conducts business internationally and one or more of its subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in countries and states in which it operates. With certain exceptions, the Company is no longer subject to federal, state and local or non-U.S. income tax examinations by tax authorities for the years before June 30, 2021.
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