Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2022 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Net Income from Operations before Provision for Income Taxes |
Net income from operations before provision for income taxes for the years ended June 30, 2022 and 2021 is shown below:
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
|
June 30,
2022 |
|
|
|
June 30,
2021 |
|
U.S. |
|
|
$ |
166,379 |
|
|
|
$ |
192,771 |
|
Foreign |
|
|
|
38 |
|
|
|
|
30 |
|
|
|
|
$ |
166,417 |
|
|
|
$ |
192,801 |
|
|
| Provision for Income Tax Expense by Jurisdiction and Effective Tax Rate |
The Company files a consolidated federal income tax return based on a June 30 tax year end. The provision for income tax expense by jurisdiction and the effective tax rate for the years ended June 30, 2022 and 2021 are shown below:
|
|
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
|
June 30,
2022 |
|
|
|
June 30,
2021 |
|
Current: |
|
|
|
|
|
|
|
|
Federal |
|
|
$ |
32,518 |
|
|
|
$ |
28,899 |
|
State and local |
|
|
|
4,701 |
|
|
|
|
4,954 |
|
Foreign |
|
|
|
225 |
|
|
|
|
97 |
|
|
|
|
|
37,444 |
|
|
|
|
33,950 |
|
Deferred: |
|
|
|
|
|
|
|
|
Federal |
|
|
|
(3,281 |
) |
|
|
|
(2,961 |
) |
State and local |
|
|
|
(825 |
) |
|
|
|
888 |
|
|
|
|
|
(4,106 |
) |
|
|
|
(2,073 |
) |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
$ |
33,338 |
|
|
|
$ |
31,877 |
|
|
|
|
|
|
|
|
|
|
Effective income tax rate |
|
|
|
20.0 |
% |
|
|
|
16.5 |
% |
|
| 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, 2022 and 2021, are set forth below:
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
June 30,
2022 |
|
|
June 30,
2021 |
|
Federal income tax |
|
$ |
34,947 |
|
|
$ |
40,488 |
|
State tax, net of federal benefit |
|
|
3,236 |
|
|
|
3,935 |
|
Adjustment related to JMB acquisition |
|
|
— |
|
|
|
(9,539 |
) |
Foreign derived intangible income |
|
|
(1,476 |
) |
|
|
(2,427 |
) |
Stock based compensation |
|
|
(3,075 |
) |
|
|
(1,233 |
) |
Reversal of pre-acquisition deferred taxes in joint venture |
|
|
— |
|
|
|
(981 |
) |
State rate change |
|
|
(171 |
) |
|
|
950 |
|
Permanent adjustments |
|
|
(252 |
) |
|
|
266 |
|
Foreign rate differential |
|
|
217 |
|
|
|
91 |
|
Other |
|
|
(88 |
) |
|
|
327 |
|
|
|
$ |
33,338 |
|
|
$ |
31,877 |
|
|
| 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, 2022 and June 30, 2021:
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
June 30,
2022 |
|
|
June 30,
2021 |
|
Accrued compensation |
|
$ |
58 |
|
|
$ |
189 |
|
Lease liabilities |
|
|
1,804 |
|
|
|
1,871 |
|
Stock-based compensation |
|
|
1,222 |
|
|
|
1,067 |
|
State tax accrual |
|
|
368 |
|
|
|
391 |
|
Net operating loss carry forwards |
|
|
855 |
|
|
|
855 |
|
Other |
|
|
34 |
|
|
|
50 |
|
Deferred tax assets |
|
|
4,341 |
|
|
|
4,423 |
|
|
|
|
|
|
|
|
Intangible assets |
|
|
(15,071 |
) |
|
|
(20,834 |
) |
Fixed assets |
|
|
(1,000 |
) |
|
|
(438 |
) |
Earnings from equity method investment |
|
|
(2,052 |
) |
|
|
(981 |
) |
Right of use assets |
|
|
(1,617 |
) |
|
|
(1,633 |
) |
Other |
|
|
(9 |
) |
|
|
(51 |
) |
Deferred tax liabilities |
|
|
(19,749 |
) |
|
|
(23,937 |
) |
|
|
|
|
|
|
|
Net deferred tax liability |
|
$ |
(15,408 |
) |
|
$ |
(19,514 |
) |
|
| Schedule of Unrecognized Tax Benefits |
Below is a reconciliation of the net unrecognized tax benefits for the years ended June 30, 2022 and 2021:
|
|
|
|
|
|
|
|
|
in thousands |
|
|
|
|
|
|
|
|
June 30,
2022 |
|
|
June 30,
2021 |
|
Beginning balance |
|
$ |
277 |
|
|
$ |
163 |
|
Decreases in tax positions for prior year |
|
|
(93 |
) |
|
|
— |
|
Reductions due to lapse of statute of limitations |
|
|
(38 |
) |
|
|
(26 |
) |
Additions as a results of tax positions taken during current period |
|
|
— |
|
|
|
140 |
|
|
|
$ |
146 |
|
|
$ |
277 |
|
|