XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Income Taxes (Text Block) | 12 Months Ended
--- | ---
Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes [Text Block] | INCOME TAXES The provision/(benefit) for income taxes consists of the following:
| Year Ended June 30, |  |  |  |
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 46,137 |  |  | $ | 54,800 |  |  | $ | 56,060 |
State | 13,690 |  |  | 12,946 |  |  | 9,948 |
Deferred: |  |  |  |  |
Federal | 21,130 |  |  | 4,177 |  |  | (80,509) |
State | 3,451 |  |  | 3,427 |  |  | 5,625 |
| $ | 84,408 |  |  | $ | 75,350 |  |  | $ | (8,876) |
The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:
| June 30, |  |
| 2020 |  | 2019
Deferred tax assets: |  |  |
Contract and service revenues | $ | 14,469 |  |  | $ | 13,450 |
Expense reserves (bad debts, compensation, and payroll tax) | 14,096 |  |  | 14,325 |
Leasing liabilities | 17,122 |  |  | — |
Net operating loss and tax credit carryforwards | 3,786 |  |  | 2,713 |
Other, net | 2,327 |  |  | 851 |
Total gross deferred tax assets | 51,800 |  |  | 31,339 |
Valuation allowance | (473) |  |  | (415) |
Net deferred tax assets | 51,327 |  |  | 30,924 |
Deferred tax liabilities: |  |  |
Accelerated tax depreciation | (39,619) |  |  | (31,846) |
Accelerated tax amortization | (166,343) |  |  | (154,633) |
Contract and service costs | (73,331) |  |  | (61,455) |
Leasing right-of-use assets | (16,032) |  |  | — |
Total gross deferred liabilities | (295,325) |  |  | (247,934) |
Net deferred tax liability | $ | (243,998) |  |  | $ | (217,010) |
The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:
| Year Ended June 30, |  |  |  |
| 2020 |  | 2019 |  | 2018
Computed "expected" tax expense | 21.0 | % |  | 21.0 | % |  | 28.1 | %
Increase (reduction) in taxes resulting from: |  |  |  |  |
State income taxes, net of federal income tax benefits | 3.6 | % |  | 3.7 | % |  | 2.9 | %
Research and development credit | (2.4) | % |  | (2.5) | % |  | (2.0) | %
Domestic production activities deduction | — | % |  | — | % |  | (1.4) | %
TCJA deferred tax rate re-measurement | — | % |  | — | % |  | (30.0) | %
Tax effects of share-based payments | (0.1) | % |  | (1.4) | % |  | (0.8) | %
Other (net) | — | % |  | 0.9 | % |  | 0.7 | %
| 22.1 | % |  | 21.7 | % |  | (2.5) | %
On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("TCJA") was enacted into law. The TCJA included numerous provisions that impacted the Company, including reducing the U.S. federal tax rate, eliminating the Domestic Production Activities Deduction, 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. As of June 30, 2020, the Company has $8,108 of gross federal net operating loss (“NOL”) carryforwards pertaining to the acquisition of Goldleaf Financial Solutions, Inc., BOLTS, and Geezeo, which are expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2020, the Company has state NOL carryforwards with a tax-effected value of $532. The federal and state losses have varying expiration dates, ranging from fiscal 2021 to 2040. Based on state tax rules which restrict utilization of these losses, the Company believes it is more likely than not that $473 of these losses will expire unutilized. Accordingly, a valuation allowance of $473 and $415 has been recorded against the state net operating losses as of June 30, 2020 and 2019, respectively. The Company paid income taxes, net of refunds, of $63,692, $62,005, and $60,382 in fiscal 2020, 2019, and 2018, respectively. At June 30, 2020, the Company had $10,112 of gross unrecognized tax benefits, $9,434 of which, if recognized, would affect its effective tax rate. At June 30, 2019, the Company had $10,495 of unrecognized tax benefits, $9,892 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $1,565 and $1,514 related to uncertain tax positions at June 30, 2020 and 2019, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $38, $128, and $165 in the fiscal years ended June 30, 2020, 2019, and 2018, respectively. A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2020 and 2019 follows:
| Unrecognized Tax Benefits
Balance at July 1, 2018 | $ | 10,227 |
Additions for current year tax positions | 1,135 |
Reductions for current year tax positions | (40) |
Additions for prior year tax positions | 562 |
Reductions for prior year tax positions | (531) |
Additions related to business combinations | 43 |
Settlements | (25) |
Reductions related to expirations of statute of limitations | (876) |
Balance at June 30, 2019 | 10,495 |
Additions for current year tax positions | 1,451 |
Additions for prior year tax positions | 867 |
Additions related to business combinations | 192 |
Reductions related to expirations of statute of limitations | (2,893) |
Balance at June 30, 2020 | $ | 10,112 |
The U.S. federal and state income tax returns for fiscal 2017 and all subsequent years remain subject to examination as of June 30, 2020 under statute of limitations rules. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,500 - $4,500 within twelve months of June 30, 2020.

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://fasb.org/us-gaap/role/ref/legacyRef -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