Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Schedule of Income Loss Before Income Tax Expense

The domestic and foreign components of income before provision for income taxes are as follows (in thousands):


	Year Ended June 30,
	2023		2022		2021
Domestic	$	447,975	$	421,942	$	471,711
Foreign	35,664		32,630		27,904
Income before income taxes	$	483,639	$	454,572	$	499,615

Schedule of Components of Income Tax Expense

The components of income tax expense are as follows (in thousands):


	Year Ended June 30,
	2023		2022		2021
Current:
Federal	$	184,040	$	66,956	$	(94,143)
State and local	49,824		1,372		19,958
Foreign	11,053		9,880		7,384
Total current	244,917		78,208		(66,801)
Deferred:
Federal	(109,894)		(12,884)		109,157
State and local	(36,717)		22,140		185
Foreign	598		314		(369)
Total deferred	(146,013)		9,570		108,973
Total income tax expense	$	98,904	$	87,778	$	42,172

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate of 21.0% as a result of the following (in thousands):


	Year Ended June 30,
	2023			2022			2021
Expected tax expense computed at federal statutory rate	$	101,564		$	95,460		$	104,919
State and local taxes, net of federal benefit	15,900			21,295			21,252
Remeasurement of current year NOL	—			(1,124)			(56,192)
R&D tax credit, net	(14,205)			(15,708)			(18,173)
Stock-based compensation	(930)			(3,981)			(5,525)
Nonincludible and nondeductible items, net	1,105			1,588			(2,269)
Remeasurement of deferred taxes	(5,546)			(5,629)			—
Other	1,016			(4,123)			(1,840)
Total income tax expense	$	98,904		$	87,778		$	42,172
Effective income tax rate	20.4		%	19.3		%	8.4		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to deferred taxes are presented below (in thousands):


	June 30,
	2023		2022
Deferred tax assets:
Operating lease liabilities	$	102,679	$	99,997
Reserves and accruals	27,881		46,513
Capitalized research and development	191,872		—
Credits and net operating loss carryovers	4,284		6,647
Deferred compensation and post-retirement obligations	34,477		31,537
Stock-based compensation	11,032		11,907


Total deferred tax assets	372,225		196,601
Deferred tax liabilities:
Goodwill and other intangible assets	(331,845)		(318,150)
Property, plant and equipment	(31,068)		(102,940)
Operating lease right-of-use assets	(78,670)		(80,551)
Deferred revenue	(26,543)		(34,850)
Prepaid expenses	(11,177)		(11,162)
Interest rate swaps	(10,943)		(4,954)
Other	(2,524)		(835)
Total deferred tax liabilities	(492,770)		(553,442)
Net deferred tax liability	$	(120,545)	$	(356,841)

Schedule of Unrecognized Tax Benefits

Changes in the Company’s liability for unrecognized tax benefits is shown in the table below (in thousands):


	Year Ended June 30,
	2023		2022		2021
Beginning of year	$	42,810	$	31,505	$	8,826
Additions based on prior year tax positions	3,829		8,221		20,025
Additions based on current year tax positions	107,221		8,313		5,702
Settlement with taxing authorities	—		(5,229)		(3,048)
End of year	$	153,860	$	42,810	$	31,505
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	$	56,944	$	42,810	$	31,505