Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Income before income taxes was derived from the following sources:

Income taxes include the following:

A reconciliation of the effective income tax rate to the statutory federal rate follows:


	2024		2023		2022
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	0.9		2.1		(0.2)

Tax related to international activities	2.3		1.2		2.7

Cash surrender value of life insurance	(0.1)		(0.1)		0.5
Foreign derived intangible income deduction	(1.5)		(1.1)		(3.7)
Research tax credit	(0.6)		(0.7)		(0.8)
Share-based compensation	(1.2)		(1.0)		(1.3)
Other	0.1		0.8		0.3
Effective income tax rate	20.9	%	22.2	%	18.5	%

The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows:


	2024		2023
Retirement benefits	$	123,951	$	158,560
Other liabilities and reserves	213,866		240,821
Long-term contracts	45,279		37,747
Stock-based compensation	34,141		33,374
Loss carryforwards	1,063,837		1,083,732
Inventory	67,917		96,501
Capitalized research and development	145,697		92,191
Tax credit carryforwards	36,062		18,773
Unrealized currency exchange gains and losses	(18,302)		(1,680)
Undistributed foreign earnings	(30,468)		(21,304)
Depreciation and amortization	(2,103,689)		(2,228,606)
Valuation allowance	(1,069,510)		(1,078,354)
Net deferred tax (liability)	$	(1,491,219)	$	(1,568,245)

Change in net deferred tax (liability):
Provision for deferred tax	$	(32,476)	$	(91,865)
Items of other comprehensive (loss) income	(23,514)		(64,342)
Acquisitions and other	133,016		(1,215,579)
Total change in net deferred tax	$	77,026	$	(1,371,786)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2024		2023		2022
Balance July 1	$	113,503	$	90,669	$	100,759
Additions for tax positions related to current year	6,479		9,389		7,039
Additions for tax positions of prior years	—		6,171		1,415
Additions for acquisitions	4,195		25,957		—
Reductions for tax positions of prior years	(4,869)		(3,063)		(140)
Reductions for settlements	—		(6,923)		(3,127)
Reductions for expiration of statute of limitations	(15,019)		(11,199)		(6,647)
Effect of foreign currency translation	(2,185)		2,502		(8,630)
Balance June 30	$	102,104	$	113,503	$	90,669