Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Components of income before income taxes

The components of income before income taxes are as follows:


Year Ended June 30,	2024		2023		2022
U.S.	$	467,785	$	423,316	$	287,367
Foreign	30,345		26,495		42,423
Income before income taxes	$	498,130	$	449,811	$	329,790

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes consists of:


Year Ended June 30,	2024		2023		2022
Current:
Federal	$	86,501	$	84,294	$	40,608
State and local	23,016		19,026		10,188
Foreign	3,925		5,468		6,404
Total current	113,442		108,788		57,200
Deferred:
Federal	(791)		(1,881)		12,467
State and local	1,159		(84)		2,659
Foreign	(1,442)		(3,751)		50
Total deferred	(1,074)		(5,716)		15,176
Total	$	112,368	$	103,072	$	72,376

Reconciliations of federal statutory income tax rate and Company's effective income tax rate

The following reconciles the U.S. federal statutory income tax rate to the Company’s effective income tax rate:


Year Ended June 30,	2024		2023		2022
Statutory income tax rate	21.0	%	21.0	%	21.0	%
Effects of:
State and local taxes	4.0		3.5		3.3
Stock compensation	(1.2)		(1.0)		(1.5)
GILTI/FDII	(0.4)		(0.2)		0.2
R & D credit	(0.4)		(0.4)		(0.4)
U.S. tax on foreign income, net	(0.1)		—		(0.4)
Impact of foreign operations	0.3		0.2		0.4
Non-deductibles/Deductible dividend	0.9		0.6		0.2
Interest deduction	(0.4)		(0.4)		(0.6)
Valuation allowance	(0.7)		(0.6)		(0.6)
Other, net	(0.4)		0.2		0.3
Effective income tax rate	22.6	%	22.9	%	21.9	%

Components of the Company's net deferred tax assets

Significant components of the Company’s deferred tax assets and liabilities are as follows:


June 30,	2024		2023
Deferred tax assets:
Compensation liabilities not currently deductible	$	18,646	$	17,726
Other expenses and reserves not currently deductible	15,008		18,215

Leases	34,771		26,345

Net operating loss carryforwards	6,340		6,809
Capitalization of R&D costs	17,584		11,646
Other	300		381
Total deferred tax assets	$	92,649	$	81,122
Less: Valuation allowance	(158)		(3,459)
Deferred tax assets, net of valuation allowance	$	92,491	$	77,663
Deferred tax liabilities:
Inventories	$	(18,086)	$	(15,174)
Goodwill and intangibles	(63,733)		(52,463)
Leases	(34,473)		(26,179)
Hedging instrument	(5,965)		(9,081)
Depreciation and differences in property bases	(10,506)		(9,757)
Total deferred tax liabilities	(132,763)		(112,654)
Net deferred tax liabilities	$	(40,272)	$	(34,991)
Net deferred tax liabilities are classified as follows:
Other assets	$	11,306	$	9,990
Other liabilities	(51,578)		(44,981)
Net deferred tax liabilities	$	(40,272)	$	(34,991)

Reconciliation of the Company's total gross unrecognized income tax benefits

The Company and its subsidiaries file income tax returns in U.S. federal, various state, local, and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2024, 2023, and 2022:


Year Ended June 30,	2024		2023		2022
Unrecognized Income Tax Benefits at beginning of the year	$	4,821	$	4,926	$	5,230
Current year tax positions	105		622		505
Prior year tax positions	(412)		(86)		(83)
Expirations of statutes of limitations	(1,466)		(641)		(726)

Unrecognized Income Tax Benefits at end of year	$	3,048	$	4,821	$	4,926