Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 525

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 5
Chunk 525
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 enters into such contracts for hedging purposes only. The Company has designated certain of these currency contracts as hedges, and changes in the fair value of these contracts are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with these contracts will be reported in net income.    The Company also uses interest rate swaps to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company values the swaps based on contract prices in the derivatives market for similar instruments. The Company has designated its interest rate swap agreements, including any that  may be forward-dated, as cash flow hedges, and changes in the fair value of the swaps are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swaps will be reported by the Company in interest expense.   The Company does not hold or issue derivative instruments for trading purposes.  

   Income Taxes   The income tax provision from continuing operations for the fiscal year ended  June 30, 2025 was $11.1 million, or an effective rate of 16.1%, compared to $21.5 million, or an effective rate of 22.6%, for the year ended  June 30, 2024, and $24.8 million, or an effective rate of 15.1%, for the year ended  June 30, 2023. Changes in the effective tax rates from period to period  may be significant as they depend on many factors including, but not limited to, the amount of our income or loss, the mix of income earned in the U.S. versus outside the U.S., the effective tax rate in each of the countries in which we earn income, and any one-time tax issues which occur during the period.   The income tax provision from continuing operations for the fiscal year ended  June 30, 2025 was impacted by the following items: (i) a tax provision of $5.7 million due to the mix of income in various jurisdictions, (ii) tax benefits of $4.6 million related to foreign tax credits of $2.1 million, as well as Federal R&D tax credits of $2.5 million, (iii) a tax provision of $1.8 million related to officers’ compensation, (iv) a tax provision of $3.0 million related to cash repatriation, and (v