Income Taxes (Text Block)

6 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate increased for the three months ended December 31, 2023, compared to the three months ended December 31, 2022, with an effective tax rate of 23.5% of income before income taxes, compared to 23.2% in the prior fiscal year quarter.

For the six months ended December 31, 2023, the effective tax rate increased compared to the six months ended December 31, 2022, with an effective tax rate of 23.6% of income before taxes, compared to 23.4% for the same

period last fiscal year. The increase in the effective tax rate for the three and six months ended December 31, 2023, was primarily due to the difference in impact of share-based compensation that vested during each of the periods.

The Company paid income taxes, net of refunds, of $52,018 and $37,213 in the six months ended December 31, 2023, and 2022, respectively. The increase in paid income taxes for the six months ended December 31, 2023 over the six months ended December 31, 2022 was primarily the result of the timing of payments, with a greater portion of the anticipated equivalent annual amounts being paid in the current fiscal year-to-date period.

At December 31, 2023, the Company had $13,414 of gross unrecognized tax benefits before interest and penalties, $11,702 of which, if recognized, would affect our effective tax rate. The Company had accrued interest and penalties of $2,317 and $1,546 related to uncertain tax positions at December 31, 2023, and 2022, respectively.

The U.S. federal income tax returns for fiscal 2020 and all subsequent years remain subject to examination as of December 31, 2023, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of December 31, 2023, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates potential changes due to lapsing of statutes of limitations, and examination closures could reduce the unrecognized tax benefits balance by $1,500 to $4,500 within twelve months of December 31, 2023.