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Legal Actions And Contingencies | 9 Months Ended
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Mar. 31, 2020
Legal Actions And Contingencies [Abstract] |
Legal Actions And Contingencies | (12) Legal Actions and Contingencies Litigation In the normal course of business, we are subject to routine litigation incidental to our business. While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole. Taxation Matters As described in note 6 – Income Taxes, we received Notices of Amended Assessments from the ATO for the tax years 2009 to 2013. Based on these assessments, the ATO asserted that we owe $151.7 million in additional income tax and $38.4 million in accrued interest, of which $75.9 million was paid in April 2018 under a payment arrangement with the ATO. In June 2018, we received a notice from the ATO claiming penalties of 50% of the additional income tax that was assessed, or $75.9 million. At September 30, 2018, we recorded a receivable in prepaid taxes and other non-current assets for the amount paid as we ultimately expect this will be refunded by the ATO. We do not agree with the ATO’s assessments and we continue to believe we are more likely than not to be successful in defending our position. However, if we are not successful, we will not receive a refund of the amount paid in April 2018 and we would be required to pay the remaining additional income tax, accrued interest and penalties, which would be recorded as income tax expense. The ATO is currently auditing tax years 2014 to 2018. In connection with recent changes in U.S. tax laws and the analysis of historical tax filings, we identified an administrative oversight in our prior year tax filings relating to a gain on an internal legal entity reorganization. We applied for relief from the U.S. Internal Revenue Service (“IRS”) and amended the related tax returns required to correct the administrative oversight. On March 26, 2020, we received written notice from the IRS stating that our relief requests were granted. As such, no additional tax or penalties are owed and this matter has been closed. Contingent Obligations Under Recourse Provisions We use independent financing institutions to offer some of our customers financing for the purchase of some of our products. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the customers repay the financing institution on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with recourse, either limited or full, whereby we are responsible for repaying the financing company should the customer default. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with recourse and is recorded in accrued expenses. The following table summarizes the amount of receivables sold with recourse (in thousands):
|  | Nine Months Ended ‎March 31,
|  | 2020 |  | 2019
Total receivables sold: |  |  |  |  |  |
Full recourse |  | $ | - |  | $ | 28,846
Limited recourse |  |  | 99,785 |  |  | 70,847
Total |  | $ | 99,785 |  | $ | 99,693
The following table summarizes the maximum exposure on outstanding receivables sold with recourse and provision for doubtful accounts (in thousands):
|  | March 31, ‎2020 |  | June 30, ‎2019
Maximum exposure on outstanding receivables: |  |  |  |  |  |
Full recourse |  | $ | 1,870 |  | $ | 19,209
Limited recourse |  |  | 23,436 |  |  | 10,241
Total |  | $ | 25,306 |  | $ | 29,450
Contingent provision for receivables with recourse |  | $ | (4,764) |  | $ | (1,752)

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- Definition The entire disclosure for legal proceedings, legal contingencies, litigation, regulatory and environmental matters and other contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 + Details
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