Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Components of income before income taxes

The components of income before income taxes are as follows:


Year Ended June 30,	2023		2022		2021
U.S.	$	423,316	$	287,367	$	152,202
Foreign	26,495		42,423		24,860
Income before income taxes	$	449,811	$	329,790	$	177,062

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

The provision for income taxes consists of:


Year Ended June 30,	2023		2022		2021
Current:
Federal	$	84,294	$	40,608	$	46,685
State and local	19,026		10,188		11,035
Foreign	5,468		6,404		5,665
Total current	108,788		57,200		63,385
Deferred:
Federal	(1,881)		12,467		(24,168)
State and local	(84)		2,659		(4,740)
Foreign	(3,751)		50		(2,172)
Total deferred	(5,716)		15,176		(31,080)
Total	$	103,072	$	72,376	$	32,305

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,	2023		2022		2021
Statutory income tax rate	21.0	%	21.0	%	21.0	%
Effects of:
State and local taxes	3.5		3.3		3.2
Stock compensation	(1.0)		(1.5)		(2.5)
GILTI/FDII	(0.2)		0.2		0.1
R & D credit	(0.4)		(0.4)		(1.5)
U.S. tax on foreign income, net	—		(0.4)		(0.5)
Impact of foreign operations	0.2		0.4		—
Non-deductibles/Deductible dividend	0.6		0.2		—
Interest deduction	(0.4)		(0.6)		(1.1)
Valuation allowance	(0.6)		(0.6)		0.1
Other, net	0.2		0.3		(0.6)
Effective income tax rate	22.9	%	21.9	%	18.2	%

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,	2023		2022
Deferred tax assets:
Compensation liabilities not currently deductible	$	17,726	$	19,131
Other expenses and reserves not currently deductible	18,215		17,143

Leases	26,345		26,688

Net operating loss carryforwards	6,809		7,371
Capitalization of R&D costs	11,646		—
Other	381		563
Total deferred tax assets	$	81,122	$	70,896
Less: Valuation allowance	(3,459)		(6,271)
Deferred tax assets, net of valuation allowance	$	77,663	$	64,625
Deferred tax liabilities:
Inventories	$	(15,174)	$	(13,728)
Goodwill and intangibles	(52,463)		(46,513)
Leases	(26,179)		(26,509)
Hedging instrument	(9,081)		(6,446)
Depreciation and differences in property bases	(9,757)		(9,760)
Total deferred tax liabilities	(112,654)		(102,956)
Net deferred tax liabilities	$	(34,991)	$	(38,331)
Net deferred tax liabilities are classified as follows:
Other assets	$	9,990	$	5,677
Other liabilities	(44,981)		(44,008)
Net deferred tax liabilities	$	(34,991)	$	(38,331)

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, 2023, 2022, and 2021:


Year Ended June 30,	2023		2022		2021
Unrecognized Income Tax Benefits at beginning of the year	$	4,926	$	5,230	$	4,955
Current year tax positions	622		505		285
Prior year tax positions	(86)		(83)		620
Expirations of statutes of limitations	(641)		(726)		(630)

Unrecognized Income Tax Benefits at end of year	$	4,821	$	4,926	$	5,230