Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Jun. 30, 2022

Income (loss) before income taxes consisted of the following for the years ended June 30:


(in thousands)	2023			2022			2021
Income (loss) before income taxes:
United States	$	(14,702)		$	10,109		$	(60,775)
International	174,323			196,624			125,435
Total income before income taxes	$	159,621		$	206,733		$	64,660
Current income taxes:
Federal	$	2,007		$	1,115		$	39
State	546			106			133
International	42,921			44,019			30,726
Total current income taxes	45,474			45,240			30,898
Deferred income taxes:
Federal	$	(3,394)		$	10,841		$	(23,170)
State	683			(676)			(2,948)
International	(6,508)			1,127			1,463
Total deferred income taxes:	(9,219)			11,292			(24,655)
Provision for income taxes	$	36,255		$	56,532		$	6,243
Effective tax rate	22.7		%	27.3		%	9.7		%

Reconciliation of Income Taxes and the Provision for Income Taxes

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:


(in thousands)	2023		2022		2021
Income taxes at U.S. statutory rate	$	33,520	$	43,414	$	13,579
State income taxes, net of federal tax benefit	971		(450)		(1,725)
U.S. income taxes provided on international income	4,583		12,815		(6,479)
Combined tax effects of international income	5,761		2,747		5,860

Change in valuation allowance and other uncertain tax positions	(4,060)		(614)		1,127

U.S. research and development credit	(3,325)		(2,814)		(3,055)
Change in permanent reinvestment assertion	—		775		—

Combined effects of Swiss tax reform	(2,225)		—		—
Recognition of stranded deferred tax balance	—		—		(3,465)

Other	1,030		659		401
Provision for income taxes	$	36,255	$	56,532	$	6,243

Components of Net Deferred Tax Liabilities and Assets

The components of net deferred tax assets and liabilities were as follows at June 30:


(in thousands)	2023		2022
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	24,111	$	25,868
Inventory valuation and reserves	9,677		11,747
Accrued employee benefits	14,758		14,825
Operating lease liabilities	11,229		11,995
Other accrued liabilities	13,963		12,992
Capitalized research and development costs	25,187		7,244
Tax credits and other carryforwards	22,601		27,686
Intangible assets	5,209		4,246

Total	126,735		116,603
Valuation allowance	8,281		14,385
Total deferred tax assets	$	118,454	$	102,218
Deferred tax liabilities:
Tax depreciation in excess of book	$	62,763	$	57,109
Operating lease right-of-use assets	11,084		11,852

Unremitted earnings not permanently reinvested	4,831		7,242
Pension benefits	1,808		1,061
Other	4,511		2,537
Total deferred tax liabilities	$	84,997	$	79,801
Total net deferred tax assets (liabilities)	$	33,457	$	22,417

Reconciliation of Unrecognized Tax Benefits Excluding Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest and penalty) is as follows as of June 30:


(in thousands)	2023		2022		2021
Balance at beginning of year	$	7,598	$	8,656	$	8,680
(Decreases)/Increases for tax positions of prior years	(658)		105		—



Decreases related to lapse of statute of limitations	(99)		(779)		(229)
Foreign currency translation	94		(384)		205
Balance at end of year	$	6,935	$	7,598	$	8,656