Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Jun. 30, 2023

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


(in thousands)	2024			2023			2022
Income (loss) before income taxes:
United States	$	(13,544)		$	(14,702)		$	10,109
International	157,994			174,323			196,624
Total income before income taxes	$	144,450		$	159,621		$	206,733
Current income tax expense (benefit):
Federal	$	(4,003)		$	2,007		$	1,115
State	1,045			546			106
International	41,784			42,921			44,019
Total current income tax expense	38,826			45,474			45,240
Deferred income tax expense (benefit):
Federal	$	(3,389)		$	(3,394)		$	10,841
State	(2,880)			683			(676)
International	(1,748)			(6,508)			1,127
Total deferred income tax expense (benefit):	(8,017)			(9,219)			11,292
Provision for income taxes	$	30,809		$	36,255		$	56,532
Effective tax rate	21.3		%	22.7		%	27.3		%

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)	2024		2023		2022
Income taxes at U.S. statutory rate	$	30,335	$	33,520	$	43,414
State income taxes, net of federal tax benefit	(1,412)		971		(450)
U.S. income taxes provided on international income	4,272		4,583		12,815
Combined tax effects of international income	10,163		5,761		2,747

Change in valuation allowance and other uncertain tax positions	(3,398)		(4,060)		(614)

U.S. research and development credit	(4,026)		(3,325)		(2,814)
Change in permanent reinvestment assertion	—		—		775

Combined effects of Swiss tax reform	(7,801)		(2,225)		—

Non-deductible executive compensation	2,389		667		1,395

Other	287		363		(736)

Provision for income taxes	$	30,809	$	36,255	$	56,532

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)	2024		2023
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	20,340	$	24,111
Inventory valuation and reserves	9,322		9,677
Accrued employee benefits	13,627		14,758
Operating lease liabilities	12,097		11,229
Other accrued liabilities	13,810		13,963
Capitalized research and development costs	35,637		25,187
Tax credits and other carryforwards	18,231		22,601
Intangible assets	11,095		5,209

Total	134,159		126,735
Valuation allowance	5,911		8,281
Total deferred tax assets	$	128,248	$	118,454
Deferred tax liabilities:
Tax depreciation in excess of book	$	58,723	$	62,763
Operating lease right-of-use assets	12,038		11,084

Unremitted earnings not permanently reinvested	6,931		4,831
Pension benefits	2,633		1,808
Other	4,761		4,511
Total deferred tax liabilities	$	85,086	$	84,997
Total net deferred tax assets (liabilities)	$	43,162	$	33,457

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)	2024		2023		2022
Balance at beginning of year	$	6,935	$	7,598	$	8,656
(Decreases)/Increases for tax positions of prior years	—		(658)		105

Increase for tax positions related to the current year	79		—		—

Decreases related to lapse of statute of limitations	(5,686)		(99)		(779)
Foreign currency translation	(19)		94		(384)
Balance at end of year	$	1,309	$	6,935	$	7,598