Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Income Loss Before Income Tax Expense

The domestic and foreign components of income before provision for income taxes are as follows (in thousands):

	Year Ended June 30,
	2022		2021		2020
Domestic	$	421,942	$	471,711	$	379,414
Foreign		32,630		27,904		22,223
Income before income taxes	$	454,572	$	499,615	$	401,637

Schedule of Components of Income Tax Expense

The components of income tax expense are as follows (in thousands):

	Year Ended June 30,
	2022			2021			2020
Current:
Federal	$	66,956		$	(94,143	)	$	42,268
State and local		1,372			19,958			14,744
Foreign		9,880			7,384			5,271
Total current		78,208			(66,801	)		62,283
Deferred:
Federal		(12,884	)		109,157			12,940
State and local		22,140			185			5,465
Foreign		314			(369	)		(531	)
Total deferred		9,570			108,973			17,874
Total income tax expense	$	87,778		$	42,172		$	80,157

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0% as a result of the following (in thousands):

	Year Ended June 30,
	2022			2021			2020
Expected tax expense computed at federal statutory rate	$	95,460		$	104,919		$	84,344
State and local taxes, net of federal benefit		21,295			21,252			15,965
Remeasurement of current year NOL		(1,124	)		(56,192	)		—
R&D tax credit, net		(15,708	)		(18,173	)		(10,700	)
Stock-based compensation		(3,981	)		(5,525	)		(10,900	)
Nonincludible and nondeductible items, net		1,588			(2,269	)		3,133
Remeasurement of deferred taxes		(5,629	)		—			—
Other		(4,123	)		(1,840	)		(1,685	)
Total income tax expense	$	87,778		$	42,172		$	80,157
Effective income tax rate		19.3	%		8.4	%		20.0	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):

	June 30,
	2022			2021
Deferred tax assets:
Operating lease liabilities	$	99,997		$	110,282
Reserves and accruals		46,513			58,900
Credits and net operating loss carryovers		6,647			39,123
Deferred compensation and post-retirement obligations		31,537			36,183
Stock-based compensation		11,907			11,767
Interest rate swaps		—			6,800
Other		—			2,757
Total deferred tax assets		196,601			265,812
Deferred tax liabilities:
Goodwill and other intangible assets		(318,150	)		(291,282	)
Property, plant and equipment		(102,940	)		(167,527	)
Operating lease right-of-use assets		(80,551	)		(90,186	)
Deferred revenue		(34,850	)		(35,115	)
Prepaid expenses		(11,162	)		(8,932	)
Interest rate swaps		(4,954	)		—
Other		(835	)		—
Total deferred tax liabilities		(553,442	)		(593,042	)
Net deferred tax liability	$	(356,841	)	$	(327,230	)

The deferred tax assets and liabilities were revalued in fiscal 2022 due to a reduction in the blended state effective tax rate.

Schedule of Unrecognized Tax Benefits

Changes in the Company’s liability for unrecognized tax benefits is shown in the table below (in thousands):

	Year Ended June 30,
	2022			2021			2020
Beginning of year	$	31,505		$	8,826		$	1,530
Additions based on prior year tax positions		8,221			20,025			5,003
Additions based on current year tax positions		8,313			5,702			2,293
Settlement with taxing authorities		(5,229	)		(3,048	)		—
End of year	$	42,810		$	31,505		$	8,826