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Income Taxes | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes We file a consolidated federal income tax return. Taxes based on income for the years ended June 30 have been provided as follows:
| 2022 |  | 2021 |  | 2020
Currently payable: |  |  |  |  |
Federal | $ | 19,751 |  |  | $ | 32,655 |  |  | $ | 23,392 |
State and local | 1,974 |  |  | 7,460 |  |  | 6,808 |
Total current provision | 21,725 |  |  | 40,115 |  |  | 30,200 |
Deferred federal, state and local provision | 1,077 |  |  | 3,298 |  |  | 11,894 |
Total taxes based on income | $ | 22,802 |  |  | $ | 43,413 |  |  | $ | 42,094 |
For the years ended June 30, our effective tax rate varied from the statutory federal income tax rate as a result of the following factors:
| 2022 |  | 2021 |  | 2020
Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes | 0.7 |  |  | 3.2 |  |  | 3.1 |
Research and development tax credit | (1.7) |  |  | (0.8) |  |  | — |
Net windfall tax benefits - stock-based compensation | (0.1) |  |  | (0.6) |  |  | (0.8) |
Other | 0.4 |  |  | 0.6 |  |  | 0.2 |
Effective rate | 20.3 | % |  | 23.4 | % |  | 23.5 | %
Our net deferred tax liability for all periods presented has been classified as noncurrent. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 were comprised of:
| 2022 |  | 2021
Deferred tax assets: |  |  |
Employee medical and other benefits | $ | 6,638 |  |  | $ | 6,853 |
Operating lease liabilities | 6,553 |  |  | 5,181 |
Receivables | 2,756 |  |  | 2,175 |
Inventories | 1,668 |  |  | 3,003 |
Other accrued liabilities | 1,443 |  |  | 1,719 |
Total deferred tax assets | 19,058 |  |  | 18,931 |
Deferred tax liabilities: |  |  |
Property, plant and equipment | (33,738) |  |  | (31,052) |
Goodwill | (15,930) |  |  | (14,174) |
Operating lease right-of-use assets | (6,726) |  |  | (5,298) |
Intangible assets | (1,494) |  |  | (7,076) |
Other | (59) |  |  | (33) |
Total deferred tax liabilities | (57,947) |  |  | (57,633) |
Net deferred tax liability | $ | (38,889) |  |  | $ | (38,702) |
Prepaid federal income taxes of $5.1 million were included in Other Current Assets at June 30, 2021. Prepaid state and local income taxes of $1.9 million and $1.1 million were included in Other Current Assets at June 30, 2022 and 2021, respectively. Net cash payments for income taxes for each of the years ended June 30 were as follows:
| 2022 |  | 2021 |  | 2020
Net cash payments for income taxes | $ | 17,827 |  |  | $ | 40,735 |  |  | $ | 30,958 |
The gross tax contingency reserve at June 30, 2022 was $0.9 million and consisted of estimated tax liabilities of $0.4 million and interest and penalties of $0.5 million. The unrecognized tax benefits recorded as the gross tax contingency reserve noted in the following table for June 30, 2022 and 2021 would affect our effective tax rate, if recognized. The following table sets forth changes in our total gross tax contingency reserve (including interest and penalties):
| 2022 |  | 2021
Balance, beginning of year | $ | 1,253 |  |  | $ | 968 |
Tax positions related to the current year: |  |  |
Additions | — |  |  | — |
Reductions | — |  |  | — |
Tax positions related to prior years: |  |  |
Additions | 45 |  |  | 311 |
Reductions | (373) |  |  | (26) |
Settlements | — |  |  | — |
Balance, end of year | $ | 925 |  |  | $ | 1,253 |
We have not classified any of the gross tax contingency reserve at June 30, 2022 in Accrued Liabilities as none of these amounts are expected to be resolved within the next 12 months. Consequently, the entire liability of $0.9 million was included in Other Noncurrent Liabilities. We expect that the amount of these liabilities will change within the next 12 months; however, we do not expect the change to have a significant effect on our financial position or results of operations. We recognize interest and penalties related to these tax liabilities in income tax expense. For each of the years ended June 30, we recognized the change in the accrual for net tax-related interest and penalties as follows:
| 2022 |  | 2021
(Benefit) expense recognized for net tax-related interest and penalties | $ | (22) |  |  | $ | 48 |
We had accrued interest and penalties at June 30 as follows:
| 2022 |  | 2021
Accrued interest and penalties included in the gross tax contingency reserve | $ | 507 |  |  | $ | 529 |
We file federal and various state and local income tax returns in the United States. With limited exceptions, we are no longer subject to examination of U.S. federal or state and local income taxes for years prior to 2019.

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- 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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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