XML 30 R13.htm IDEA: XBRL DOCUMENT
v3.23.2

Income Taxes (Text Block) | 12 Months Ended
--- | ---
Jun. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes [Text Block] | INCOME TAXES The provision for income taxes consists of the following:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 125,622 |  |  | $ | 59,390 |  |  | $ | 55,598 |
State | 30,505 |  |  | 18,089 |  |  | 13,897 |
Deferred: |  |  |  |  |
Federal | (40,218) |  |  | 24,391 |  |  | 14,401 |
State | (7,981) |  |  | 7,481 |  |  | 2,360 |
| $ | 107,928 |  |  | $ | 109,351 |  |  | $ | 86,256 |
The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:
| June 30,
| 2023 |  | 2022
Deferred tax assets: |  |  |
Contract and service revenues | $ | 18,186 |  |  | $ | 15,340 |
Expense reserves and accruals (bad debts, compensation, and payroll tax) | 14,023 |  |  | 15,382 |
Leasing liabilities | 12,462 |  |  | 12,868 |
Net operating loss and tax credit carryforwards | 1,965 |  |  | 2,107 |
Other, net | 2,916 |  |  | 3,311 |
Total gross deferred tax assets | 49,552 |  |  | 49,008 |
Valuation allowance | (125) |  |  | (200) |
Net deferred tax assets | 49,427 |  |  | 48,808 |
Deferred tax liabilities: |  |  |
Property and equipment depreciation | (27,788) |  |  | (33,390) |
Intangibles, software development, and research and development tax amortization | (136,045) |  |  | (192,187) |
Contract and service costs | (119,201) |  |  | (104,139) |
Leasing right-of-use assets | (10,824) |  |  | (11,722) |
Total gross deferred liabilities | (293,858) |  |  | (341,438) |
Net deferred tax liability | $ | (244,431) |  |  | $ | (292,630) |
The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:
| Year Ended June 30,
| 2023 |  | 2022 |  | 2021
Computed "expected" tax expense | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (reduction) in taxes resulting from: |  |  |  |  |
State income taxes, net of federal income tax benefits | 3.7 | % |  | 4.3 | % |  | 3.2 | %
Research and development credit | (2.3) | % |  | (2.0) | % |  | (2.4) | %
Other (net) | 0.3 | % |  | (0.1) | % |  | (0.1) | %
| 22.7 | % |  | 23.2 | % |  | 21.7 | %
As of June 30, 2023, the Company has $63 of gross federal net operating loss (“NOL”) pertaining to the acquisition of Goldleaf Financial Solutions, Inc. which is expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2023, the Company has state NOL and tax credit carryforwards with a tax-effected value of $128 and $1,824, respectively. The federal and state loss and credit carryover have varying expiration dates, ranging from fiscal 2024 to 2043. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $125 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $125 and $200 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2023, and 2022, respectively. The Company paid income taxes, net of refunds, of $145,862, $60,553, and $80,220 in fiscal 2023, 2022, and 2021, respectively. The increase in cash taxes paid in the current fiscal year is the result of law changes that were included in the Tax Cuts and Jobs Act of 2017 that are effective in the current fiscal year. The law changes require the capitalization of software development and research and development costs (IRC 174 costs) for tax purposes. At June 30, 2023, the Company had $12,005 of gross unrecognized tax benefits, $10,453 of which, if recognized, would affect its effective tax rate. At June 30, 2022, the Company had $8,990 of unrecognized tax benefits, $8,066 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $1,872 and $1,234 related to uncertain tax positions at June 30, 2023, and 2022, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $529, $73, and $(310) in the fiscal years ended June 30, 2023, 2022, and 2021, respectively. A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2023, 2022, and 2021, follows:
| Unrecognized Tax Benefits
Balance at July 1, 2020 | $ | 10,112 |
Additions for current year tax positions | 1,598 |
Additions for prior year tax positions | 490 |
Reductions for prior year tax positions | (30) |
Reductions related to expirations of statute of limitations | (3,408) |
Balance at June 30, 2021 | 8,762 |
Additions for current year tax positions | 1,863 |
Additions for prior year tax positions | 1,642 |
Reductions for prior year tax positions | (36) |
Reductions related to expirations of statute of limitations | (3,241) |
Balance at June 30, 2022 | 8,990 |
Additions for current year tax positions | 2,570 |
Additions for prior year tax positions | 2,433 |
Reductions for prior year tax positions | (350) |
Reductions related to expirations of statute of limitations | (1,638) |
Balance at June 30, 2023 | $ | 12,005 |
The U.S. federal income tax returns for fiscal 2020 and all subsequent years remain subject to examination as of June 30, 2023, under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of June 30, 2023, under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $1,500 — $4,500 within twelve months of June 30, 2023.

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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration