Income Taxes (Text Block)

3 Months Ended

Sep. 30, 2025

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate increased for the fiscal three months ended September 30, 2025, compared to the fiscal three months ended September 30, 2024, with an effective tax rate of 24.3% of income before income taxes, compared to 24.0% in the prior fiscal year quarter. The increase to the Company's effective tax rate was primarily due to differences in tax impacts of stock-based compensation between the two periods.

The Company paid income taxes, net of refunds, of $16,316 and $3,006 in the fiscal three months ended September 30, 2025, and 2024, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, introducing significant changes to U.S. federal income tax law. Key provisions affecting the Company include the permanent restoration of immediate expensing for domestic research and development (“R&D”), an election to deduct the unamortized balance of domestic R&D expenditures that were previously capitalized under the Tax Cuts and Jobs Act of 2017 ("TCJA"), and the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025. The legislation did not materially impact the effective tax rate in the current period, and the Company does not anticipate a material impact in future periods. However, the Company does anticipate a significant reduction in cash tax payments and income taxes payable for the current fiscal year as well as a decrease in deferred tax assets related to the key provisions cited above.

All tax effects of the change in tax law on current or deferred tax balances have been recorded as a component of the income tax provision related to continuing operations. The Company will continue to monitor developments related to OBBBA and evaluate the financial reporting implications of any elections or method changes made under the new guidance.

At September 30, 2025, the Company had $22,781 of gross unrecognized tax benefits before interest and penalties, $20,493 of which, if recognized, would affect our effective tax rate. The Company had accrued interest and penalties of $4,786 related to uncertain tax positions at September 30, 2025. We do not expect a material change to our unrecognized tax benefits during the next twelve months.

The U.S. federal and state income tax returns for fiscal 2022 and all subsequent years remain subject to examination as of September 30, 2025, under statute of limitations rules. In addition, certain U.S. state income tax returns remain subject to examination as of September 30, 2025, under the statute of limitation rules for fiscal 2016 through 2022. During the fiscal three months ended September 30, 2025, the Internal Revenue Service ("IRS") initiated and is currently conducting an examination of the Company's U.S. federal income tax return for the fiscal 2023 tax year.