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Income Taxes | 9 Months Ended
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Mar. 31, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Our income tax expense was $4,091 and $23,971 for the three and nine months ended March 31, 2019, as compared to $4,019 and $19,657 for the prior comparable periods. The increase in tax expense is primarily attributable to increased pre-tax income for the three and nine months ended March 31, 2019 as compared to the same prior year periods. There were no significant discrete tax adjustments recognized during the three months ended March 31, 2019. However, earlier this year we recognized a decrease in deferred tax assets related to guidance issued by the Internal Revenue Service regarding limitations on tax deductions for compensation granted to certain executives, which increased our tax expense by $5,574 for the nine months ended March 31, 2019 as compared to increased tax expense of $4,701 related to the impacts of U.S. tax reform recognized in the same prior year period. We also recognized "Patent Box" tax benefits of $3,547 granted to our Pixartprinting business in Italy during the nine months ended March 31, 2019. Additionally, we have recognized lower excess tax benefits from share based compensation for the nine months ended March 31, 2019 as compared to the same prior period. Excluding the effect of these discrete tax adjustments, our estimated annual effective tax rate is lower for fiscal 2019 as compared to fiscal 2018 primarily due to an expectation of a more favorable geographical mix of consolidated earnings. Our effective tax rate continues to be negatively impacted by losses in certain jurisdictions where we are unable to recognize a full tax benefit in the current period. On February 12, 2019, our parent company, Cimpress N.V., moved its place of management and control from the Netherlands to Ireland for tax purposes. From this date forward, Cimpress N.V. is a tax resident in Ireland and no longer considered to be a resident of the Netherlands for Dutch tax purposes. This change is not expected to have a material effect on our fiscal 2019 tax provision. As of March 31, 2019, we had a liability for unrecognized tax benefits included in the balance sheet of $4,859, including accrued interest and penalties of $462. We recognize interest and, if applicable, penalties related to unrecognized tax benefits in the provision for income taxes. If recognized, the entire liability for unrecognized tax benefits would reduce our tax expense. It is reasonably possible that a reduction in unrecognized tax benefits may occur within the next twelve months in the range of $600 to $700 related to the lapse of applicable statutes of limitations. We believe we have appropriately provided for all tax uncertainties. We conduct business in a number of tax jurisdictions and, as such, are required to file income tax returns in multiple jurisdictions globally. The years 2016 through 2018 remain open for examination by the IRS and the years 2013 through 2018 remain open for examination in the various states and non-US tax jurisdictions in which we file tax returns. We believe that our income tax reserves are adequately maintained taking into consideration both the technical merits of our tax return positions and ongoing developments in our income tax audits. However, the final determination of our tax return positions, if audited, is uncertain, and there is a possibility that final resolution of these matters could have a material impact on our results of operations or cash flows.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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