Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Components of income before income taxes

The components of income before income taxes are as follows:


Year Ended June 30,	2022		2021		2020
U.S.	$	287,367	$	152,202	$	36,161
Foreign	42,423		24,860		19,075
Income before income taxes	$	329,790	$	177,062	$	55,236

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes consists of:


Year Ended June 30,	2022		2021		2020
Current:
Federal	$	40,608	$	46,685	$	31,149
State and local	10,188		11,035		7,580
Foreign	6,404		5,665		5,757
Total current	57,200		63,385		44,486
Deferred:
Federal	12,467		(24,168)		(8,594)
State and local	2,659		(4,740)		(3,098)
Foreign	50		(2,172)		(1,600)
Total deferred	15,176		(31,080)		(13,292)
Total	$	72,376	$	32,305	$	31,194

Reconciliations of federal statutory income tax rate and Company's effective income tax rate

The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:


Year Ended June 30,	2022		2021		2020
Statutory income tax rate	21.0	%	21.0	%	21.0	%
Effects of:
State and local taxes	3.3		3.2		6.4
U.S. federal tax reform/CARES Act NOL carryback	—		—		(1.8)
Goodwill impairment	—		—		31.4
Stock compensation	(1.5)		(2.5)		(1.3)
GILTI/FDII	0.2		0.1		3.6
R & D credit	(0.4)		(1.5)		(1.2)
U.S. tax on foreign income, net	(0.4)		(0.5)		(3.1)
Impact of foreign operations	0.4		—		1.6
Non-deductibles/Deductible dividend	0.2		—		0.6
Interest deduction	(0.6)		(1.1)		(4.0)
Valuation allowance	(0.6)		0.1		2.6
Other, net	0.3		(0.6)		0.7
Effective income tax rate	21.9	%	18.2	%	56.5	%

Components of the Company's net deferred tax assets

Significant components of the Company’s deferred tax assets and liabilities are as follows:


June 30,	2022		2021
Deferred tax assets:
Compensation liabilities not currently deductible	$	19,131	$	17,436
Other expenses and reserves not currently deductible	17,143		18,676

Leases	26,688		23,126

Net operating loss carryforwards	7,371		9,262
Hedging instrument	—		2,794
Other	563		799
Total deferred tax assets	$	70,896	$	72,093
Less: Valuation allowance	(6,271)		(8,542)
Deferred tax assets, net of valuation allowance	$	64,625	$	63,551
Deferred tax liabilities:
Inventories	$	(13,728)	$	(9,215)
Goodwill and intangibles	(46,513)		(38,534)
Leases	(26,509)		(22,475)
Hedging instrument	(6,446)		—
Depreciation and differences in property bases	(9,760)		(6,214)
Total deferred tax liabilities	(102,956)		(76,438)
Net deferred tax liabilities	$	(38,331)	$	(12,887)
Net deferred tax liabilities are classified as follows:
Other assets	$	5,677	$	6,373
Other liabilities	(44,008)		(19,260)
Net deferred tax liabilities	$	(38,331)	$	(12,887)

Reconciliation of the Company's total gross unrecognized income tax benefits

The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2022, 2021, and 2020:


Year Ended June 30,	2022		2021		2020
Unrecognized Income Tax Benefits at beginning of the year	$	5,230	$	4,955	$	4,979
Current year tax positions	505		285		105
Prior year tax positions	(83)		620		177
Expirations of statutes of limitations	(726)		(630)		(306)

Unrecognized Income Tax Benefits at end of year	$	4,926	$	5,230	$	4,955