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Income Taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
As of the fiscal year ended June 30, 2025, the Company maintains the ability to access the earnings of foreign subsidiaries. The Company considered recording a deferred tax liability related to federal, state and withholding tax and determined that no liability should be recorded. There is no certainty as to the timing of the distributions of such earnings to the U.S. in whole or in part.

Income tax expense (benefit) consists of:
 Fiscal Year Ended June 30,
 202520242023
 (in thousands)
Current:
Federal$12,736 $15,626 $25,034 
State3,805 3,608 6,455 
Foreign3,498 5,578 4,507 
Total current20,039 24,812 35,996 
Deferred:
Federal2,320 (827)(2,991)
State(217)(911)(541)
Foreign706 (293)1,294 
Total deferred2,809 (2,031)(2,238)
Provision for income taxes$22,848 $22,781 $33,758 

A reconciliation is provided below of the U.S. Federal income tax expense for the fiscal years ended June 30, 2025, June 30, 2024 and June 30, 2023 with the applicable statutory rate of 21%.
 Fiscal Year Ended June 30,
 202520242023
 (in thousands)
U.S. statutory rate21.0 %21.0 %21.0 %
U.S. Federal income tax at statutory rate$19,823 $20,967 $25,588 
Increase (decrease) in income taxes due to:
State and local income taxes, net of Federal benefit2,788 1,939 4,559 
Tax credits(573)(1,794)(909)
Valuation allowance(445)1,131 1,087 
Effect of varying statutory rates in foreign operations, net1,382 2,109 2,751 
Stock compensation(1,258)(76)37 
Reduction in prior year transition tax(2,065)— — 
Earnings from foreign subsidiaries778 776 957 
Losses on dispositions— (2,816)— 
Global intangible low taxed income tax
475 (832)1,551 
Nontaxable income(136)(927)(3,189)
Nondeductible compensation2,144 1,412 1,240 
Notional interest deduction on net equity(928)— (733)
Other863 892 819 
Provision for income taxes$22,848 $22,781 $33,758 
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:
 June 30,
 20252024
 (in thousands)
Deferred tax assets derived from:
Allowance for accounts receivable$8,055 $7,787 
Inventories2,690 2,927 
Nondeductible accrued expenses7,376 7,538 
Net operating loss carryforwards268 243 
Tax credits9,574 8,771 
Deferred compensation6,984 7,706 
Stock compensation4,186 4,490 
Capital loss carryforwards11,579 12,306 
Timing of amortization deduction from intangible assets7,675 6,680 
Timing of depreciation and other deductions from building and equipment437 — 
Total deferred tax assets58,824 58,448 
Valuation allowance(19,633)(19,594)
Total deferred tax assets, net of allowance39,191 38,854 
Deferred tax liabilities derived from:
Timing of depreciation and other deductions from building and equipment— (724)
Timing of amortization deduction from goodwill(17,659)(13,716)
Timing of amortization deduction from intangible assets(2,763)(4,512)
Total deferred tax liabilities(20,422)(18,952)
Net deferred tax assets$18,769 $19,902 

The components of pretax earnings are as follows:
 Fiscal Year Ended June 30,
 202520242023
 (in thousands)
Domestic$78,460 $78,653 $94,994 
Foreign15,936 21,188 26,856 
Worldwide pretax earnings$94,396 $99,841 $121,850 

As of June 30, 2025, there were (i) gross net operating loss carryforwards of approximately $0.9 million for U.S. federal income tax purposes; (ii) gross state net operating loss carryforwards of approximately $1.1 million; (iii) state income tax credit carryforwards of approximately $3.8 million that began to expire in the 2024 tax year; (iv) withholding tax credits of approximately $5.5 million; (v) foreign tax credits of $1.1 million, and (vi) gross capital loss carryovers of $46.4 million. The Company maintains a valuation allowance of $0.1 million for U.S. federal net operating losses, $11.6 million for capital loss carryforwards, a less than $0.1 million valuation allowance for state net operating losses, a $5.5 million valuation allowance for withholding tax credits, a $1.1 million valuation allowance for foreign tax credits, and a $1.3 million valuation allowance for state income tax credits, where it was determined that, in accordance with ASC 740, it is more likely than not that they cannot be utilized.

The Company recognizes excess tax benefits and tax deficiencies as income tax expense or benefit for stock award settlements in accordance with ASU 2016-09. The Company recognized net tax benefit of $1.2 million for the fiscal year ended June 30, 2025, net tax expense of less than $0.1 million for the fiscal year ended June 30, 2024 and net tax benefit of less than $0.1 million for the fiscal year ended June 30, 2023.
As of June 30, 2025, the Company had gross unrecognized tax benefits of $0.7 million, $0.6 million of which, if recognized, would affect the effective tax rate. This reflects a decrease of $0.4 million on a gross basis over the prior fiscal year. The Company does not expect that the total amount of unrecognized tax benefits will significantly increase or decrease within the next twelve months.

The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying Consolidated Income Statements. Accrued interest and penalties are included within the related tax liability line in the Consolidated Balance Sheets. The total amount of interest and penalties accrued, but excluded from the table below, were $1.0 million, $1.3 million and $1.2 million for the fiscal years ended June 30, 2025, 2024 and 2023, respectively. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
June 30,
202520242023
 (in thousands)
Beginning Balance$1,141 $1,172 $1,065 
Additions based on tax positions related to the current year86 89 123 
Reduction for tax positions of prior years(529)(120)(16)
Ending Balance$698 $1,141 $1,172 

On August 26, 2024, the U.S. Tax Court issued an opinion in Varian Medical Systems, Inc. v. Commissioner. The opinion related to the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act (the company’s fiscal year 2018). While the company was not a party to the case, the opinion resulted in a change to its tax position, and as such recorded a tax benefit of $2.1 million as a reduction to the provision for income taxes in the June 30, 2025 fiscal year.

During the June 30, 2024 fiscal year, the Company received a favorable ruling in Brazil regarding an exclusion from taxable income and as a result recognized a $1.5 million income tax recovery for prior years. A court ruling in Brazil in June 2023 confirmed that Brazilian state-provided tax benefits are not subject to income tax and the Company recognized a tax benefit of $2.2 million during the June 30, 2023 fiscal year.

Subsequent to the 2023 fiscal year-end, the IRS issued Notice 2023-55 which provides taxpayers with Brazilian subsidiaries temporary relief from the final foreign tax credit regulations. As a result, the company recognized a tax benefit of $1.5 million during the 2024 fiscal year for creditable foreign taxes for the 2023 fiscal year.

The Company conducts business internationally and, as a result, one or more of its subsidiaries files income tax returns in the United States federal, various state, local and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities in countries in which it operates. With certain exceptions, the Company is no longer subject to state and local, or non-United States income tax examinations by tax authorities for tax years before June 30, 2020.

On July 4, 2025, the One Big Beautiful Bill Act (“the Act”) was signed into law. The Act permanently extends key provisions of the Tax Cuts and Jobs Act, including 100% bonus depreciation, and introduces changes to the international tax framework. We are currently assessing the impact of the Act on our future effective tax rate, tax liabilities, and cash taxes.