Income Taxes

6 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pre-tax income, or loss, of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company's tax expense or benefit can be impacted by changes in tax rates or laws, the finalization of tax audits, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

Income tax expense was $21.0 million, or 20.0 percent of pre-tax income for the three months ended December 31, 2024, as compared with income tax expense of $12.5 million, or 22.6 percent of pre-tax income for the three months ended December 31, 2023. Income tax expense for the six months ended December 31, 2024 was $37.4 million, or 18.1 percent of pre-tax income as compared with income tax expense of $21.0 million, or 19.5 percent of pre-tax income for the six months ended December 31, 2023.

Income tax expense for the three months ended December 31, 2024 includes discrete tax benefits of $3.0 million attributable to employee share-based compensation.

Income tax expense for the six months ended December 31, 2024 includes discrete tax benefits of $9.8 million attributable to employee share-based compensation and $0.9 million for the impact of restructuring charges. Income tax expense for the six months ended December 31, 2023 included discrete tax benefits of $4.7 million attributable to employee share-based compensation.