Income Taxes

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income (loss) before income taxes for the Company's domestic and foreign operations was as follows:

	Years Ended June 30,
($ in millions)	2025		2024		2023
Domestic	$	454.5	$	224.1	$	51.2
Foreign	12.8		(12.5)		21.3
Income before income taxes	$	467.3	$	211.6	$	72.5

The expense (benefit) for income taxes from continuing operations consisted of the following:

	Years Ended June 30,
($ in millions)	2025		2024		2023
Current:
Federal	$	89.8	$	30.4	$	8.6
State	14.5		4.2		2.6
Foreign	4.4		3.8		5.3
Total current	108.7		38.4		16.5
Deferred:
Federal	(16.1)		(10.1)		(0.9)
State	(1.3)		(2.7)		(0.5)
Foreign	—		(0.5)		1.0
Total deferred	(17.4)		(13.3)		(0.4)
Total income tax expense	$	91.3	$	25.1	$	16.1

The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rates: 

	Years Ended June 30,
(% of pre-tax income)	2025		2024		2023
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	2.4		2.7		2.8
Foreign tax rate differential	0.1		(0.3)		0.9
Research and development tax credit	(0.9)		(1.6)		(3.5)
Foreign derived intangible income deduction	(1.6)		(1.8)		—
Adjustments of prior years' income taxes	(0.1)		—		8.7
Non-deductible goodwill impairment	—		1.4		—
Tax benefit related to closure of Additive operations	—		(8.7)		—
Non-taxable income	(0.1)		(0.5)		(0.8)
Non-deductible expenses	0.4		6.4		(0.1)
Non-deductible compensation	1.2		1.6		1.4
Share-based compensation	(2.7)		(3.2)		—
Changes in valuation allowances	—		(4.7)		(7.4)
Law changes	—		—		0.4
Interest on prior tax positions	(0.2)		(0.4)		(1.3)
Other, net	—		—		0.1
Effective income tax rate	19.5	%	11.9	%	22.2	%

Deferred taxes are recorded for temporary differences between the carrying amounts of assets and liabilities and their tax bases. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The Company had state net operating loss carryforwards of $139.8 million expiring between fiscal years 2026 and 2045. A significant portion of the state net operating loss carryforwards are subject to an annual limitation that, under current law, is likely to limit future tax benefits to approximately $6.1 million. Realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. Although realization is not assured, management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be revised in the near term if estimates of future taxable income during the carryforward period change.

Valuation allowances increased by $0.2 million during fiscal year 2025. As a result of increases in estimates of projected future taxable income during the carryforward period, valuation allowance was reduced by $0.1 million for the expected realization of previously limited state tax credit carryforwards. This was offset by a $0.3 million increase in net operating losses incurred in certain jurisdictions for which no tax benefit was recognized.

The significant components of deferred tax assets and liabilities that are recorded in the consolidated balance sheets are summarized in the table below:

	June 30,
($ in millions)	2025		2024
Deferred tax assets:
Pensions	$	26.3	$	33.1
Postretirement provisions	11.3		14.4
Non-equity compensation	9.6		9.6
Net operating loss carryforwards	8.3		8.5
Tax credit carryforwards	1.6		2.0
Operating lease liabilities	8.1		8.9
Other	21.0		20.1
Gross deferred tax assets	86.2		96.6
Valuation allowances	(2.6)		(2.4)
Total deferred tax assets	83.6		94.2
Deferred tax liabilities:
Depreciation	198.4		219.6
Intangible assets	2.4		3.2
Inventories	28.3		28.2
Operating lease right-of-use assets	6.4		7.0
Other	3.1		2.8
Total deferred tax liabilities	238.6		260.8
Deferred tax liabilities, net	$	155.0	$	166.6

The Company does not have unrecognized tax benefits as of June 30, 2025, 2024 and 2023. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.

All years prior to fiscal year 2018 have been settled with the Internal Revenue Service and with most significant state, local and foreign tax jurisdictions.

The Company asserts that substantially all undistributed earnings from foreign subsidiaries are not considered indefinitely reinvested. The potential tax implications from the distribution of these earnings are expected to be limited to withholding taxes in certain jurisdictions and are not expected to materially impact the consolidated financial statements.