v3.25.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the combined Canadian federal and provincial income tax rate with our effective income tax rate is as follows:
Year Ended June 30,
202520242023
Expected statutory rate26.50 %26.50 %26.50 %
Expected provision for income taxes$127,749 $193,263 $58,653 
Effect of foreign tax rate differences(9,275)(18,338)(17,502)
Change in valuation allowance (1)
(4,040)71,328 16,218 
Effect of permanent differences24,908 11,864 17,281 
Effect of changes in unrecognized tax benefits (2)
(32,387)(4,570)857 
Effect of withholding taxes7,479 18,680 12,464 
Effect of tax credits (3)
(55,656)(84,244)(45,596)
Effect of accrual for undistributed earnings4,072 (12,421)5,804 
Effect of U.S. BEAT (3)
— 17,927 6,854 
Difference in tax filing positions from provision (4)
(37,053)(2,661)(621)
Impact of internal reorganizations (5)
5,037 59,761 8,822 
Other items15,171 13,423 7,533 
Provision for income taxes$46,005 $264,012 $70,767 
______________________
(1)The decrease in valuation allowance in Fiscal 2025 relates to the recognition of assets previously not recognized as compared to the increase in valuation allowance in Fiscal 2024 due to assets no longer meeting the recognition criteria as a result of the AMC Divestiture.
(2)Fiscal 2025 benefit primarily relates to statute of limitation expirations as compared to Fiscal 2024.
(3)The change in foreign tax credits and U.S. BEAT in Fiscal 2025, compared to Fiscal 2024, is primarily driven by the AMC Divestiture.
(4)The benefit in the current year is related to book to tax filing adjustments for Fiscal 2024 and prior years.
(5)The impact of internal reorganizations in Fiscal 2025 is primarily related to legal entity rationalization activity, as compared to Fiscal 2024 in which significant gains from the AMC Divestiture were recognized.
Schedule of Income before Income Tax, Domestic and Foreign
The following is a geographical breakdown of income before the provision for income taxes:
Year Ended June 30,
202520242023
Domestic income (loss)$248,942 $359,865 $300,437 
Foreign income (loss)233,129 369,431 (79,104)
Income before income taxes$482,071 $729,296 $221,333 
Schedule of Components of Income Tax Expense (Benefit)
The provision for (recovery of) income taxes consisted of the following:
Year Ended June 30,
202520242023
Current income taxes (recoveries):
Domestic$13,769 $76,571 $15,619 
Foreign170,852 329,712 204,708 
Total current income taxes (recoveries)184,621 406,283 220,327 
Deferred income taxes (recoveries):
Domestic44,974 17,205 17,461 
Foreign(183,590)(159,476)(167,021)
Total deferred income taxes (recoveries)(138,616)(142,271)(149,560)
Provision for income taxes$46,005 $264,012 $70,767 
Schedule of Deferred Tax Assets and Liabilities
The primary components of the deferred tax assets and liabilities are as follows, for the periods indicated below:
As of June 30,
20252024
Deferred tax assets
Non-capital loss carryforwards$676,446 $750,895 
Capital loss carryforwards5,833 13,221 
Interest expense carryforwards230,658 217,071 
Capitalized scientific research and development expenses451,163 416,126 
Restructuring costs and other reserves18,678 21,347 
Capitalized inventory and intangible expenses123,010 — 
Tax credits179,343 172,409 
Lease liabilities36,975 36,343 
Deferred revenue22,759 23,362 
Share-based compensation40,464 40,188 
Derivatives73,074 41,978 
Other62,799 88,901 
Total deferred tax asset1,921,202 1,821,841 
Valuation allowance(651,779)(662,694)
Deferred tax liabilities
Depreciation and amortization(247,606)(233,219)
Right of use assets(22,754)(21,173)
Other(60,002)(120,730)
Deferred tax liabilities(330,362)(375,122)
Net deferred tax asset$939,061 $784,025 
Comprised of:
Long-term assets1,080,575 932,657 
Long-term liabilities(141,514)(148,632)
Net deferred tax asset$939,061 $784,025 
Schedule of Unrecognized Tax Benefits Roll Forward
The aggregate changes in the balance of our gross unrecognized tax benefits (including interest and penalties) were as follows:
Unrecognized tax benefits as of June 30, 2023
$178,728 
Increases on account of current year positions4,074 
Increases on account of prior year positions
16,558 
Decreases on account of prior year positions(3,338)
Decreases due to settlements with tax authorities(11,497)
Decreases due to lapses of statutes of limitations(4,160)
Unrecognized tax benefits as of June 30, 2024
180,365 
Increases on account of current year positions— 
Increases on account of prior year positions8,024 
Decreases on account of prior year positions(2,612)
Decreases due to settlements with tax authorities(9,569)
Decreases due to lapses of statutes of limitations(36,417)
Unrecognized tax benefits as of June 30, 2025
$139,791 
Schedule of Interest and Penalties Related to Liabilities for Income Tax Expense For the year ended June 30, 2025, 2024 and 2023, respectively, we recognized the following amounts on uncertain tax positions as income tax-related interest expense and penalties:
Year Ended June 30,
202520242023
Interest expense (income)$(5,290)$7,778 $(1,922)
Penalties expense(2,175)964 (21)
Total$(7,465)$8,742 $(1,943)
Schedule of Interest Accrued and Penalties Accrued Related to Income Tax Expense
The following amounts have been accrued on account of income tax-related interest expense and penalties:
As of June 30, 2025As of June 30, 2024
Interest expense accrued (1)
$14,686 $19,976 
Penalties accrued (1)
$2,121 $4,295 
______________________
(1)These balances are primarily included within Long-term income taxes payable within the Consolidated Balance Sheets.