Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2024 |
| Income Tax Disclosure [Abstract] |
|
| Summary of Components of (loss) Income Before Income Taxes |
The components of (loss) income before income taxes and equity in net loss of equity-method investees were as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Domestic |
|
$ |
(148,014 |
) |
|
$ |
(183,601 |
) |
|
$ |
24,541 |
|
Foreign |
|
|
67,733 |
|
|
|
54,020 |
|
|
|
78,950 |
|
Total |
|
$ |
(80,281 |
) |
|
$ |
(129,581 |
) |
|
$ |
103,491 |
|
|
| Summary of the (Benefit) Provision for Income Taxes |
The (benefit) provision for income taxes consisted of the following:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(55 |
) |
|
$ |
3,103 |
|
|
$ |
(197 |
) |
State and local |
|
|
616 |
|
|
|
953 |
|
|
|
179 |
|
Foreign |
|
|
14,980 |
|
|
|
7,719 |
|
|
|
13,714 |
|
|
|
|
15,541 |
|
|
|
11,775 |
|
|
|
13,696 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(23,403 |
) |
|
|
(23,551 |
) |
|
|
6,237 |
|
State and local |
|
|
(2,386 |
) |
|
|
271 |
|
|
|
(463 |
) |
Foreign |
|
|
2,428 |
|
|
|
(2,673 |
) |
|
|
3,246 |
|
|
|
|
(23,361 |
) |
|
|
(25,953 |
) |
|
|
9,020 |
|
Total |
|
$ |
(7,820 |
) |
|
$ |
(14,178 |
) |
|
$ |
22,716 |
|
|
| Schedule of Reconciliation of U.S Federal Statutory Rate to Effective Rate on (loss) Income before (Benefit) Provision for Income Taxes |
The reconciliation of the U.S. federal statutory rate to the Company’s effective rate on (loss) income before (benefit) provision for income taxes is as follows:
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|
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|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
% |
|
|
2023 |
|
|
% |
|
|
2022 |
|
|
% |
|
Expected United States federal income tax at statutory rate |
|
$ |
(16,857 |
) |
|
|
21.0 |
% |
|
$ |
(27,233 |
) |
|
|
21.0 |
% |
|
$ |
21,733 |
|
|
|
21.0 |
% |
State income taxes, net of federal (benefit) provision |
|
|
(5,060 |
) |
|
|
6.3 |
% |
|
|
(4,866 |
) |
|
|
3.8 |
% |
|
|
1,227 |
|
|
|
1.2 |
% |
U.S. tax on foreign earnings |
|
|
266 |
|
|
|
(0.3 |
)% |
|
|
1,946 |
|
|
|
(1.5 |
)% |
|
|
2,404 |
|
|
|
2.3 |
% |
Foreign income at different rates |
|
|
(313 |
) |
|
|
0.3 |
% |
|
|
(905 |
) |
|
|
0.7 |
% |
|
|
(576 |
) |
|
|
(0.6 |
)% |
Change in valuation allowance(a) |
|
|
15,075 |
|
|
|
(18.8 |
)% |
|
|
14,935 |
|
|
|
(11.5 |
)% |
|
|
(220 |
) |
|
|
(0.2 |
)% |
Change in reserves for uncertain tax positions |
|
|
2,044 |
|
|
|
(2.5 |
)% |
|
|
637 |
|
|
|
(0.5 |
)% |
|
|
(997 |
) |
|
|
(1.0 |
)% |
Change in foreign tax rate |
|
|
— |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
|
|
(341 |
) |
|
|
(0.3 |
)% |
Loss on disposal of subsidiary |
|
|
(1,116 |
) |
|
|
1.4 |
% |
|
|
— |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
Stock-based compensation |
|
945 |
|
|
|
(1.2 |
)% |
|
|
— |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
Return to provision |
|
|
(4,274 |
) |
|
|
5.3 |
% |
|
|
— |
|
|
|
— |
% |
|
|
— |
|
|
|
— |
% |
Other |
|
|
1,470 |
|
|
|
(1.8 |
)% |
|
|
1,308 |
|
|
|
(1.1 |
)% |
|
|
(514 |
) |
|
|
(0.4 |
)% |
(Benefit) provision for income taxes |
|
$ |
(7,820 |
) |
|
|
9.7 |
% |
|
$ |
(14,178 |
) |
|
|
10.9 |
% |
|
$ |
22,716 |
|
|
|
22.0 |
% |
(a) The Company estimated that it would not be able to utilize certain of its federal tax credit, federal tax losses and state tax loss carryovers due to its history of pretax losses and inability to carry back tax losses or credits for refunds. This negative evidence resulted in the Company increasing the valuation allowance on worldwide deferred tax assets in the year ended June 30, 2024 by $15,075, and in the year ended June 30, 2023 by $14,935.
|
| Components of Deferred Tax Assets and Liabilities |
Deferred tax assets and liabilities consisted of the following:
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|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
Noncurrent deferred tax assets (liabilities): |
|
|
|
|
|
|
Basis difference on inventory |
|
$ |
4,884 |
|
|
$ |
5,130 |
|
Reserves not currently deductible |
|
|
8,386 |
|
|
|
11,045 |
|
Basis difference on intangible assets |
|
|
(62,549 |
) |
|
|
(73,635 |
) |
Basis difference on property and equipment |
|
|
(14,946 |
) |
|
|
(20,255 |
) |
Other comprehensive income |
|
|
(2,887 |
) |
|
|
(3,498 |
) |
Net operating loss and tax credit carryforwards |
|
|
67,186 |
|
|
|
50,807 |
|
Stock-based compensation |
|
|
1,591 |
|
|
|
1,937 |
|
Unremitted earnings of foreign subsidiaries |
|
|
(1,873 |
) |
|
|
(1,989 |
) |
Operating lease liability |
|
|
18,615 |
|
|
|
20,203 |
|
Lease ROU assets |
|
|
(17,309 |
) |
|
|
(19,113 |
) |
Other |
|
|
18,702 |
|
|
|
9,833 |
|
Valuation allowances |
|
|
(67,626 |
) |
|
|
(52,551 |
) |
Noncurrent deferred tax liabilities, net |
|
$ |
(47,826 |
) |
|
$ |
(72,086 |
) |
|
| Summary of Changes in Valuation Allowances |
The changes in valuation allowances against deferred income tax assets were as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
Balance at beginning of year |
|
$ |
52,551 |
|
|
$ |
36,891 |
|
Additions charged to income tax expense |
|
|
18,998 |
|
|
|
23,212 |
|
Reductions credited to income tax expense |
|
|
(3,858 |
) |
|
|
(8,514 |
) |
THWR purchase accounting |
|
|
— |
|
|
|
291 |
|
Currency translation adjustments |
|
|
(65 |
) |
|
|
671 |
|
Balance at end of year |
|
$ |
67,626 |
|
|
$ |
52,551 |
|
|
| Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity |
Unrecognized tax benefits activity, including interest and penalties, is summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
Balance at beginning of year |
|
$ |
23,967 |
|
|
$ |
21,901 |
|
|
$ |
22,870 |
|
Additions based on tax positions related to the current year |
|
|
1,906 |
|
|
|
1,519 |
|
|
|
273 |
|
Additions based on tax positions related to prior years |
|
|
187 |
|
|
|
815 |
|
|
|
304 |
|
Reductions due to lapse in statute of limitations and settlements |
|
|
— |
|
|
|
(268 |
) |
|
|
(1,546 |
) |
Balance at end of year |
|
$ |
26,060 |
|
|
$ |
23,967 |
|
|
$ |
21,901 |
|
|