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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Taxes

Schedule of deferred tax assets and liabilities

​

​	​	​	​	​	​	​
​	​	June 30,
​		2020			2019
​	​	(In thousands)
Deferred tax assets	​	​	​	​	​	​
Net operating loss carryforward	​	$	21,850	​	$	4,923
Reserves	​		3,374	​		4,769
Accrued expenses	​		4,117	​		3,492
Stock compensation expense	​		7,064	​		5,992
Other assets	​		2,252	​		1,524
Deferred rent	​		—	​		1,056
Deferred revenue	​		759	​		461
Lease liability	​	​	29,640	​	​	—
Federal tax credits	​		20	​		20
State tax credits	​		44	​		363
Total deferred tax assets	​		69,120	​		22,600
Deferred tax liabilities	​	​	​	​	​	​
Capitalized curriculum development	​		(9,245)	​		(10,143)
Capitalized software and website development costs	​		(11,907)	​		(12,659)
Property and equipment	​		(6,213)	​		(5,166)
Right-of-use assets	​	​	(28,273)	​	​	—
Returned materials	​		(2,385)	​		(2,643)
Purchased intangibles	​		(19,877)	​		(4,110)
Total deferred tax liabilities	​		(77,900)	​		(34,721)
Net deferred tax liability before valuation allowance	​		(8,780)	​		(12,121)
Valuation allowance	​		(4,991)	​		(4,549)
Net deferred tax liability	​	$	(13,771)	​	$	(16,670)
Reported as:	​	​	​	​	​	​
Long-term deferred tax liabilities	​	$	(13,771)	​	$	(16,670)

Schedule of related components of the income tax expense

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30,
​		2020			2019			2018
​	​	(In thousands)
Current:	​	​	​	​	​	​	​	​	​
Federal	​	$	6,907	​	$	3,919	​	$	887
State	​		1,911	​		1,988	​		774
Foreign	​		1,028	​		920	​		1,444
Total current	​		9,846	​		6,827	​		3,105
Deferred:	​	​	​	​	​	​	​	​	​
Federal	​		(1,687)	​		3,412	​		(4,769)
State	​		382	​		281	​		754
Total deferred	​		(1,305)	​		3,693	​		(4,015)
Total income tax expense (benefit)	​	$	8,541	​	$	10,520	​	$	(910)

Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate

​

​	​	​	​	​	​	​	​
​	​	Year Ended June 30,
​		2020		2019		2018
U.S. federal tax at statutory rates (1)	​	21.0	%	21.0	%	28.0	%
Permanent items		1.1	​	0.5	​	0.6	​
Lobbying		0.4	​	0.4	​	1.2	​
Non-deductible compensation	​	9.0	​	1.6	​	0.3	​
State taxes, net of federal benefit		5.3	​	4.3	​	3.1	​
Research and development tax credits		(1.8)	​	(0.5)	​	-	​
Domestic production activities deduction		-	​	-	​	(0.1)	​
Change in valuation allowance		0.1	​	0.2	​	(7.2)	​
Effects of foreign operations		0.3	​	0.1	​	-	​
Reserve for unrecognized tax benefits		(2.4)	​	(2.1)	​	0.9	​
Noncontrolling interests		-	​	-	​	0.4	​
Other		(0.8)	​	(0.4)	​	(3.9)	​
Impact of federal tax rate reduction	​	-	​	-	​	(25.4)	​
Repatriation transition tax	​	-	​	-	​	6.4	​
Stock-based compensation	​	(6.4)	​	(3.1)	​	(7.7)	​
Provision for (benefit from) income taxes		25.8	%	22.0	%	(3.4)	%

​

(1) The corporate tax rate was lowered from 35% to 21%, effective as of January 1, 2018.  Under IRC §15 which governs rate changes, fiscal year taxpayers are subject to a “blended” tax rate for tax years that include January 1, 2018.  Using the weighted average calculation, the Company’s blended federal tax rate for the year ended June 30, 2018 is 28%.

Schedule of unrecognized tax benefits

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended June 30,
​		2020			2019			2018
​	​	(In thousands)
Balance at beginning of the year	​	$	1,545	​	$	2,392	​	$	2,260
Additions for prior year tax positions	​		161	​		194	​		585
Additions for current year tax positions	​		179	​		87	​		8
Reductions for prior year tax positions	​	​	(1,035)	​	​	(1,128)	​	​	(461)
Balance at end of the year	​	$	850	​	$	1,545	​	$	2,392

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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