XML 27 R13.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes (Text Block) | 12 Months Ended
--- | ---
Jun. 30, 2018
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | INCOME TAXES The provision for income taxes consists of the following:
| Year Ended June 30,
| 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 56,060 |  |  | $ | 80,752 |  |  | $ | 66,574 |
State | 9,948 |  |  | 9,469 |  |  | 7,571 |
Deferred: |  |  |  |  |
Federal | (58,943 | ) |  | 25,756 |  |  | 34,355 |
State | 7,299 |  |  | 5,184 |  |  | 3,169 |
| $ | 14,364 |  |  | $ | 121,161 |  |  | $ | 111,669 |
The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:
| June 30,
| 2018 |  | 2017
Deferred tax assets: |  |  |
Contract and service revenues | $ | 18,606 |  |  | $ | 54,908 |
Expense reserves (bad debts, insurance, franchise tax and vacation) | 11,164 |  |  | 14,648 |
Net operating loss and tax credit carryforwards | 2,759 |  |  | 3,547 |
Other, net | 2,711 |  |  | 2,119 |
Total gross deferred tax assets | 35,240 |  |  | 75,222 |
Valuation allowance | (515 | ) |  | (357 | )
Net deferred tax assets | 34,725 |  |  | 74,865 |
Deferred tax liabilities: |  |  |
Accelerated tax depreciation | (32,026 | ) |  | (36,994 | )
Accelerated tax amortization | (141,274 | ) |  | (178,999 | )
Contract and service costs | (51,038 | ) |  | (78,413 | )
Total gross deferred liabilities | (224,338 | ) |  | (294,406 | )
Net deferred tax liability | $ | (189,613 | ) |  | $ | (219,541 | )
The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:
| Year Ended June 30,
| 2018 |  | 2017 |  | 2016
Computed "expected" tax expense | 28.1 | % |  | 35.0 | % |  | 35.0 | %
Increase (reduction) in taxes resulting from: |  |  |  |  |
State income taxes, net of federal income tax benefits | 2.9 | % |  | 2.6 | % |  | 1.9 | %
Research and development credit | (1.8 | )% |  | (2.0 | )% |  | (2.5 | )%
Domestic production activities deduction | (1.2 | )% |  | (2.1 | )% |  | (1.9 | )%
Tax over book basis in subsidiary stock | — | % |  | — | % |  | (1.7 | )%
TCJA deferred tax rate re-measurement | (24.2 | )% |  | — | % |  | — | %
Tax effects of share-based payments | (0.8 | )% |  | (0.7 | )% |  | — | %
Other (net) | 0.7 | % |  | 0.2 | % |  | 0.2 | %
| 3.7 | % |  | 33.0 | % |  | 31.0 | %
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("TCJA") was enacted into law, which includes numerous provisions that impact the Company, including reducing the U.S. federal tax rate, eliminating the Domestic Production Activities Deduction in future tax years, and providing expanded asset expensing. The TCJA reduced the U.S. federal statutory corporate income tax rate from 35% to 21%, effective January 1, 2018. For fiscal 2018, a blended U.S. federal statutory tax rate of approximately 28% applied to the Company. The Company recorded a net tax benefit of $118,367 as a result of TCJA. The staff of the U.S. Securities and Exchange Commission ("SEC") has recognized the complexity of reflecting the impacts of the TCJA and on December 22, 2017 issued Staff Accounting Bulletin No. 118 ("SAB 118") providing a measurement period for determining the final financial statement impacts from the TCJA. SAB 118 clarifies accounting for income taxes under ASC 740 if information is not available or complete and provides for up to a one-year period in which to complete the required analyses and accounting. SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. For the fiscal year ended June 30, 2018, the Company has not completed its accounting for the tax effects of the enactment of the TCJA. The Company has made a reasonable estimate of the effects on its existing current and deferred tax balances in accordance with SAB 118. The Company recognized a provisional net tax benefit of $118,367 for the items on which the Company was able to determine a reasonable estimate, as described below. The provisional tax benefit is included as a component of income tax expense from continuing operations. As a fiscal year taxpayer, the Company utilized certain estimates and forecasts of operations to estimate both the reversal of deferred tax assets and liabilities that existed on the enactment date, as well as the generation of additional deferred tax assets and liabilities over the remainder of the fiscal year ending June 30, 2018. The Company analyzed its deferred tax balances to estimate which of those balances are expected to reverse in fiscal 2018 (at a blended U.S. federal income tax rate of approximately 28%), or thereafter (at a 21% U.S. federal income tax rate) and recognized the income tax impacts of remeasuring the deferred taxes accordingly. The income tax impact of the re-measurement of the net deferred tax liabilities resulted in a reduction to the effective tax rate of 24.2% for the fiscal year ended June 30, 2018. Included in this reduction, is a reduction of the effective tax rate of 1.7% as a result of adjustments made to the re-measurement of the net deferred tax liabilities during the measurement period in accordance with SAB 118. As of June 30, 2018, we have $4,338 of gross federal net operating loss (“NOL”) carryforwards pertaining to the acquisition of Goldleaf Financial Solutions, Inc., which are expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2018, we have state NOL carryforwards with a tax-effected value of $1,042. The federal and state losses have varying expiration dates, ranging from fiscal 2018 to 2037. Based on state tax rules which restrict our utilization of these losses, we believe it is more likely than not that $515 of these losses will expire unutilized. Accordingly, a valuation allowance of $515 and $357 has been recorded against these assets as of June 30, 2018 and 2017, respectively. The Company paid income taxes, net of refunds, of $60,382, $96,074, and $90,307 in fiscal 2018, 2017, and 2016, respectively. At June 30, 2018, the Company had $10,227 of gross unrecognized tax benefits, $9,366 of which, if recognized, would affect our effective tax rate. At June 30, 2017, the Company had $5,449 of unrecognized tax benefits, $3,990 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,279 and $995 related to uncertain tax positions at June 30, 2018 and 2017, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $165, $(105), and $47 in the fiscal years ending June 30, 2018, 2017, and 2016, respectively. A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2018 and 2017 follows:
| Unrecognized Tax Benefits
Balance at July 1, 2016 | $ | 7,421 |
Additions for current year tax positions | 1,457 |
Reductions for current year tax positions | — |
Additions for prior year tax positions | 23 |
Reductions for prior year tax positions | (766 | )
Settlements | (1,040 | )
Reductions related to expirations of statute of limitations | (1,646 | )
Balance at June 30, 2017 | 5,449 |
Additions for current year tax positions | 2,157 |
Reductions for current year tax positions | — |
Additions for prior year tax positions | 3,130 |
Reductions for prior year tax positions | (55 | )
Additions related to business combinations | 510 |
Settlements | (161 | )
Reductions related to expirations of statute of limitations | (803 | )
Balance at June 30, 2018 | $ | 10,227 |
The U.S. federal and state income tax returns for fiscal 2015 and all subsequent years remain subject to examination as of June 30, 2018 under statute of limitations rules. We anticipate that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $500 - $1,500 within twelve months of June 30, 2018.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration