Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2021 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Net Income from Operations before Provision for Income Taxes |
Net income from operations before provision for income taxes is shown below:
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
June 30,
2021
|
|
|
|
June 30,
2020
|
|
|
U.S.
|
|
|
$
|
192,771
|
|
|
|
$
|
37,855
|
|
|
Foreign
|
|
|
|
30
|
|
|
|
|
23
|
|
|
|
|
|
$
|
192,801
|
|
|
|
$
|
37,878
|
|
|
| Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate |
The provision for income tax expense by jurisdiction and the effective tax rate for the years ended June 30, 2021 and 2020 are shown below:
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended
|
|
|
|
|
|
June 30,
2021
|
|
|
|
June 30,
2020
|
|
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
$
|
28,899
|
|
|
|
$
|
2,916
|
|
|
State and local
|
|
|
|
4,954
|
|
|
|
|
239
|
|
|
Foreign
|
|
|
|
97
|
|
|
|
|
6
|
|
|
|
|
|
|
33,950
|
|
|
|
|
3,161
|
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
|
(2,961
|
)
|
|
|
|
2,704
|
|
|
State and local
|
|
|
|
888
|
|
|
|
|
522
|
|
|
|
|
|
|
(2,073
|
)
|
|
|
|
3,226
|
|
|
Income tax expense
|
|
|
$
|
31,877
|
|
|
|
$
|
6,387
|
|
|
Effective tax rate
|
|
|
|
16.5
|
%
|
|
|
|
16.9
|
%
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the income tax provisions to the amounts computed by applying the statutory federal income tax rate to income before income tax provisions for the years ended June 30, 2021 and 2020, are set forth below:
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
Federal income tax
|
|
$
|
40,488
|
|
|
$
|
7,954
|
|
|
State tax, net of federal benefit
|
|
|
3,935
|
|
|
|
642
|
|
|
Derecognition and remeasurement gain in acquired noncontrolling interest
|
|
|
(5,524
|
)
|
|
|
—
|
|
|
Reversal of pre-acquisition equity earnings
|
|
|
(2,457
|
)
|
|
|
—
|
|
|
Foreign derived intangible income
|
|
|
(2,427
|
)
|
|
|
(579
|
)
|
|
Reversal of existing pre-acquisition deferred taxes in equity-method investment
|
|
|
(1,558
|
)
|
|
|
—
|
|
|
Stock based compensation
|
|
|
(1,233
|
)
|
|
|
—
|
|
|
Reversal of pre-acquisition deferred taxes in joint venture
|
|
|
(981
|
)
|
|
|
—
|
|
|
State rate change
|
|
|
950
|
|
|
|
—
|
|
|
Transaction costs
|
|
|
461
|
|
|
|
—
|
|
|
Permanent adjustments
|
|
|
(195
|
)
|
|
|
(184
|
)
|
|
Foreign rate differential
|
|
|
91
|
|
|
|
—
|
|
|
Uncertain tax positions
|
|
|
(14
|
)
|
|
|
(62
|
)
|
|
Return to Provision
|
|
|
(80
|
)
|
|
|
—
|
|
|
NOL Carryback
|
|
|
—
|
|
|
|
(1,492
|
)
|
|
Other
|
|
|
421
|
|
|
|
108
|
|
|
|
|
$
|
31,877
|
|
|
$
|
6,387
|
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and deferred tax liabilities related to taxable and deductible temporary differences as of June 30, 2021 and June 30, 2020:
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
Accrued compensation
|
|
$
|
189
|
|
|
$
|
118
|
|
|
Lease liabilities
|
|
|
1,871
|
|
|
|
1,091
|
|
|
Stock-based compensation
|
|
|
1,067
|
|
|
|
1,025
|
|
|
State tax accrual
|
|
|
391
|
|
|
|
41
|
|
|
Net operating loss carry forwards
|
|
|
855
|
|
|
|
878
|
|
|
Accruals and reserves
|
|
|
—
|
|
|
|
17
|
|
|
Other
|
|
|
50
|
|
|
|
45
|
|
|
Deferred tax assets
|
|
|
4,423
|
|
|
|
3,215
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
(20,834
|
)
|
|
|
(416
|
)
|
|
Fixed assets
|
|
|
(438
|
)
|
|
|
(56
|
)
|
|
Earnings from equity method investment
|
|
|
(981
|
)
|
|
|
(1,679
|
)
|
|
Investment in partnership
|
|
|
—
|
|
|
|
(194
|
)
|
|
Right of use assets
|
|
|
(1,633
|
)
|
|
|
(887
|
)
|
|
Other
|
|
|
(51
|
)
|
|
|
(45
|
)
|
|
Deferred tax liabilities
|
|
|
(23,937
|
)
|
|
|
(3,277
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred tax liability
|
|
$
|
(19,514
|
)
|
|
$
|
(62
|
)
|
|
| Schedule of Unrecognized Tax Benefits |
Below is a reconciliation of the net unrecognized tax benefits for the years ended June 30, 2021 and 2020:
|
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
Beginning balance
|
|
$
|
163
|
|
|
$
|
216
|
|
|
Reductions due to lapse of statute of limitations
|
|
|
(26
|
)
|
|
|
(53
|
)
|
|
Additions as a results of tax positions taken during current period
|
|
|
140
|
|
|
|
—
|
|
|
|
|
$
|
277
|
|
|
$
|
163
|
|
|