INCOME TAXES

9 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

(13) INCOME TAXES

Income tax benefit for the three months ended March 31, 2024 was $15.7 million, which reflects an effective tax rate of 24% compared to income tax expense of $17.2 million for the three months ended March 31, 2023, which reflects an effective tax rate of 26%. The change in the effective tax rate is primarily attributable to the current year impairment of assets. Excluding the impairment of assets, the effective tax rate would have been 26% for the three months ended March 31, 2024.

Income tax expense for the nine months ended March 31, 2024 and 2023 was $17.6 million and $59.8 million, respectively, which reflects effective tax rates of 28% for both periods.

During the nine months ended March 31, 2024, the Company recorded a $151.6 million cash tax obligation associated with the sale of non-healthcare GPO member contracts and associated future revenues to OMNIA. As of March 31, 2024, the Company has made payments of $148.6 million for taxes related to the proceeds received from the sale of future revenues to OMNIA. The remaining $3.0 million will be paid during the remainder of fiscal year 2024. Additionally, during the nine months ended March 31, 2024, the Company recorded an offsetting deferred tax asset of $152.3 million to be recorded to income tax expense as the Company recognizes revenue associated with non-healthcare GPO member contracts.