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Income Taxes
 12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
The following is a summary of our income (loss) before income taxes by geography:
 Year Ended June 30,
 202420232022
U.S. $(23,708)$(35,508)$(7,299)
Non-U.S. 152,154 5,286 16,630 
Total$128,446 $(30,222)$9,331 
The components of the (benefit) provision for income taxes are as follows:
 Year Ended June 30,
 202420232022
Current: 
U.S. Federal$(307)$1,634 $526 
U.S. State670 769 568 
Non-U.S. 42,458 39,792 36,932 
Total current42,821 42,195 38,026 
Deferred: 
U.S. Federal825 3,522 (3,566)
U.S. State(4)465 12 
Non-U.S. (93,004)109,311 25,429 
 Total deferred(92,183)113,298 21,875 
Total$(49,362)$155,493 $59,901 

The following is a reconciliation of the standard U.S. federal statutory tax rate and our effective tax rate:
 Year Ended June 30,
 202420232022
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
State taxes, net of federal effect(1.1)3.7 (11.1)
Tax rate differential on non-U.S. earnings5.9 (52.5)97.1 
Change in valuation allowance(47.9)(457.2)363.7 
Nondeductible interest expense5.6 (30.2)52.7 
Change in entity status— 4.0 — 
Compensation related items0.6 (13.7)21.9 
Goodwill impairment— (4.1)— 
Irish foreign tax credit(24.8)21.4 (46.8)
Tax on repatriated earnings6.1 (15.0)39.2 
Gain on the extinguishment of debt(0.2)2.8 — 
Notional interest deduction (Italy)(0.6)2.6 (8.8)
Patent box (Italy)(0.3)(1.5)(12.0)
Tax credits and incentives(3.1)24.1 (23.7)
Non-U.S. tax rate changes(0.1)(1.1)57.6 
Irish tax restructuring— — (13.4)
U.S. global intangible low-taxed income (GILTI)0.1 — 10.2 
U.S. foreign-derived intangible income (FDII)(1.0)2.7 (6.8)
U.S. base erosion and anti-abuse tax (BEAT)0.1 (2.1)— 
Net tax benefit on intellectual property transfer— 1.0 (10.4)
Tax loss carryforward expirations 0.4 (5.1)4.8 
Business and withholding taxes0.9 (1.2)5.1 
Uncertain tax positions0.1 (10.5)35.9 
Other non-deductible expenses1.4 (6.0)7.1 
Tax on unremitted earnings0.6 (1.6)0.1 
Changes to derivative instruments(2.1)3.1 73.5 
Other— 0.9 (14.9)
Effective income tax rate(38.4)%(514.5)%642.0 %
    
For the year ended June 30, 2024, our effective tax rate was below our U.S. federal statutory tax rate primarily due to the partial release of the valuation allowance on Swiss deferred tax assets of $105,765 related to Swiss tax reform benefits recognized in fiscal year 2020 and Swiss tax loss carryforwards. After considering all available evidence, including the recent history of strong earnings from core operations in Switzerland and the expectation of future taxable income, management concluded it is more likely than not that the recognized deferred tax assets are realizable and reduced the valuation allowance accordingly. In addition, we had non-deductible interest expense and losses in certain jurisdictions for which we cannot recognize a tax benefit. The jurisdictions that have the most significant impact to our non-U.S. tax provision include Canada, Germany, India, Ireland, Italy, the Netherlands, Spain, and Switzerland. The applicable tax rates in these jurisdictions range from 11% to 30%. The total tax rate impact from operating in non-U.S. jurisdictions is included in the line “Tax rate differential on non-U.S. earnings” in the above tax rate reconciliation table.
For the year ended June 30, 2024, our effective tax rate was (38.4)% as compared to the prior year effective tax rate of (514.5)%. The increase in our effective tax rate as compared to the prior year is primarily due pre-tax income for the year ended June 30, 2024 as compared to a pre-tax loss for the year ended June 30, 2023. During the year ended June 30, 2024 we recognized a tax benefit of $105,765 on the partial release of the valuation allowance in Switzerland as compared to tax expense of $116,694 in the year ended June 30, 2023 to increase the valuation allowance in Switzerland. Our fiscal year 2023 effective tax rate was lower than fiscal year 2022 primarily due to increasing the valuation allowance in Switzerland year over year.
Significant components of our deferred income tax assets and liabilities consisted of the following at June 30, 2024 and 2023:
 June 30, 2024June 30, 2023
Deferred tax assets: 
Swiss tax-amortizable goodwill$130,985 $131,472 
Net operating loss carryforwards66,572 75,643 
Leases28,661 30,364 
Depreciation and amortization4,765 8,289 
Accrued expenses15,572 15,335 
Share-based compensation19,530 16,920 
Tax credit and other carryforwards
69,644 45,574 
U.S. Internal Revenue Code Section 174 capitalization
6,253 2,468 
Interest limitation carryforwards
23,291 13,216 
Other1,520 2,000 
Subtotal366,793 341,282 
Valuation allowance(211,655)(277,976)
Total deferred tax assets155,138 63,306 
Deferred tax liabilities: 
Depreciation and amortization(37,432)(37,572)
Leases(24,797)(27,392)
Tax on unremitted earnings(7,984)(7,221)
Derivative financial instruments(4,250)(17,091)
Other(10,317)(8,641)
Total deferred tax liabilities(84,780)(97,917)
Net deferred tax assets$70,358 $(34,611)
In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. The decrease in the valuation allowance from the prior year relates primarily to the partial release of the Swiss valuation allowance offset by increased Irish foreign tax credit carryforwards of $23,939 and tax-effected interest limitation carryforwards of $10,239 in various jurisdictions, neither of which expire, but for which management has determined it is more likely than not that these will not be utilized.
We have recorded a partial valuation allowance of $46,270 against the Swiss tax-amortizable goodwill deferred tax assets, which we can only benefit from during calendar year 2025 through calendar year 2029 under our Swiss tax ruling. In addition, we have recorded valuation allowances of $52,596, $28,727, $5,173, and $17,053 against deferred tax assets related to net operating losses in certain jurisdictions (mainly Australia, Brazil, Cyprus, France, Ireland, Japan, the Netherlands, and the United Kingdom), U.S. research and development credits, U.S. capital loss carryforwards, and U.S. share-based compensation, respectively, for which management has determined that it is more likely than not that these will not be realized.

Based on the weight of available evidence at June 30, 2024, management believes that it is more likely than not that all other net deferred tax assets will be realized in the foreseeable future. We will continue to assess the realization of the deferred tax assets based on operating results on a quarterly basis.

A reconciliation of the beginning and ending amount of the valuation allowance for the year ended June 30, 2024 is as follows:
Balance at June 30, 2023
$277,976 
Charges to earnings (1)(61,566)
Charges to other accounts (2)(4,755)
Balance at June 30, 2024
$211,655 
_________________
(1) Amount is primarily related to the partial release of the Swiss valuation allowance, offset by increased Irish foreign tax credits and tax-effected interest limitation carryforwards.
(2) Amount is primarily related to decreased deferred tax assets on non-U.S. net operating losses due to currency exchange rate changes and unrealized gains on derivative financial instruments included in accumulated other comprehensive loss.
As of June 30, 2024, we had gross apportioned state net operating losses of $29,650, that expire on various dates from fiscal year 2025 through fiscal year 2044 or with unlimited carryforward. We also had gross non-U.S. net operating loss and capital loss carryforwards of $392,314, a significant amount of which begin to expire in fiscal year 2025, with the remaining amounts expiring on various dates through fiscal year 2035 or having unlimited carryforward. In addition, we had $33,925 of tax credit carryforwards primarily related to U.S. federal and state research and development credits, which expire on various dates beginning in fiscal year 2030 or having unlimited carryforward. We also had $22,778 and $6,841 of U.S. federal and apportioned U.S. state capital loss carryforwards, respectively, that expire in fiscal years 2025 through 2027. Lastly, we had $36,474 of Irish foreign tax credits with unlimited carryforward. The benefits of these carryforwards are dependent upon the generation of taxable income in the jurisdictions in which they arose.
We consider the following factors, among others, in evaluating our plans for indefinite reinvestment of our subsidiaries’ earnings: (i) the forecasts, budgets, and financial requirements of both our parent company and its subsidiaries, both for the long term and for the short term; (ii) the ability of Cimpress plc to fund its operations and obligations with earnings from other businesses within the global group without incurring substantial tax costs; and (iii) the tax consequences of any decision to reinvest earnings of any subsidiary. As of June 30, 2024, no tax provision has been made for $79,252 of undistributed earnings of certain of our subsidiaries as these earnings are considered indefinitely reinvested. If, in the future, we decide to repatriate the undistributed earnings from these subsidiaries in the form of dividends or otherwise, we could be subject to withholding taxes payable in the range of $16,500 to $17,500 at that time. A cumulative deferred tax liability of $7,984 has been recorded attributable to undistributed earnings that we have deemed are not indefinitely reinvested. The remaining undistributed earnings of our subsidiaries are not deemed to be indefinitely reinvested and can be repatriated with no tax cost. Accordingly, there has been no provision for income or withholding taxes on these earnings. 
A reconciliation of the gross beginning and ending amount of unrecognized tax benefits is as follows:
Balance June 30, 2021$13,399 
Additions based on tax positions related to the current tax year448 
Additions based on tax positions related to prior tax years2,958 
Reductions based on tax positions related to prior tax years(23)
Reductions due to audit settlements(2,958)
Reductions due to lapse of statute of limitations(799)
Cumulative translation adjustment(29)
Balance June 30, 202212,996 
Additions based on tax positions related to the current tax year2,167 
Additions based on tax positions related to prior tax years770 
Reductions based on tax positions related to prior tax years(62)
Reductions due to audit settlements— 
Reductions due to lapse of statute of limitations(225)
Cumulative translation adjustment(22)
Balance June 30, 202315,624 
Additions based on tax positions related to the current tax year450 
Additions based on tax positions related to prior tax years405 
Reductions based on tax positions related to prior tax years(527)
Reductions due to audit settlements(264)
Reductions due to lapse of statute of limitations(1,021)
Cumulative translation adjustment(13)
Balance June 30, 2024$14,654 
    
For the year ended June 30, 2024, the amount of unrecognized tax benefits (exclusive of interest) that, if recognized, would impact the effective tax rate is $7,527. We recognize interest and, if applicable, penalties related to unrecognized tax benefits in income tax expense. The interest and penalties recognized as of years ended June 30, 2024, 2023, and 2022 were $2,394, $1,924, and $1,383, respectively. It is reasonably possible that a further change in unrecognized tax benefits in the range of 7,500 to 8,500 may occur within the next twelve months related to the settlement of one or more audits or the lapse of applicable statutes of limitations. We believe we have appropriately provided for all tax uncertainties.
    
We conduct business in a number of tax jurisdictions and, as such, are required to file income tax returns in multiple jurisdictions globally. The years 2016 through 2024 remain open for examination by the United States Internal Revenue Service and the years 2015 through 2024 remain open for examination in the various states and non-U.S. tax jurisdictions in which we file tax returns.

We are currently under income tax audit in certain jurisdictions globally. We believe that our income tax reserves are adequately maintained taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if audited, is uncertain, and therefore there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows.