XML 33 R19.htm IDEA: XBRL DOCUMENT
v3.23.2

Tax Receivable Agreement Liability | 12 Months Ended
--- | ---
Jun. 30, 2023
Tax Receivable Agreement [Abstract] |
Tax Receivable Agreement Liability | Tax Receivable Agreement Liability The Company has a Tax Receivable Agreement with the pre-IPO owners of the LLC that provides for the payment by the Company to the pre-IPO owners (or their permitted assignees) of 85% of the amount of the benefits, if any, that the Company is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax benefits related to the Company entering into the Tax Receivable Agreement, including those attributable to payments under the Tax Receivable Agreement. These contractual payment obligations are obligations of the Company and not of the LLC. The Company's Tax Receivable Agreement liability was determined on an undiscounted basis in accordance with ASC 450, Contingencies, since the contractual payment obligations were deemed to be probable and reasonably estimable. For purposes of the Tax Receivable Agreement, the benefit deemed realized by the Company is computed by comparing the actual income tax liability of the Company (calculated with certain assumptions) to the amount of such taxes that the Company would have been required to pay had there been no increase to the tax basis of the assets of the LLC as a result of the purchases or exchanges, and had the Company not entered into the Tax Receivable Agreement. The following table reflects the changes to the Company's Tax Receivable Agreement liability:
| As of June 30,
| 2023 |  | 2022
Beginning balance | $ | 45,541 |  |  | $ | 48,214 |
Additions (reductions) to tax receivable agreement: |  |  |
Exchange of LLC Units for Class A Common Stock | 1,710 |  |  | — |
Adjustment for change in estimated state tax rate or benefits | 188 |  |  | 1,025 |
Payment under tax receivable agreement | (3,974) |  |  | (3,698) |
| 43,465 |  |  | 45,541 |
Less current portion under tax receivable agreement | (4,111) |  |  | (3,958) |
Ending balance | $ | 39,354 |  |  | $ | 41,583 |
The Tax Receivable Agreement further provides that, upon certain mergers, asset sales or other forms of business combinations or other changes of control, the Company (or its successor) would owe to the pre-IPO owners of the LLC a lump-sum payment equal to the present value of all forecasted future payments that would have otherwise been made under the Tax Receivable Agreement that would be based on certain assumptions, including a deemed exchange of LLC Units and that the Company would have sufficient taxable income to fully utilize the deductions arising from the increased tax basis and other tax benefits related to entering into the Tax Receivable Agreement. The Company also is entitled to terminate the Tax Receivable Agreement, which, if terminated, would obligate the Company to make early termination payments to the pre-IPO owners of the LLC. In addition, a pre-IPO owner may elect to unilaterally terminate the Tax Receivable Agreement with respect to such pre-IPO owner, which would obligate the Company to pay to such existing owner certain payments for tax benefits received through the taxable year of the election. When estimating the expected tax rate to use in order to determine the tax benefit expected to be recognized from the Company’s increased tax basis as a result of exchanges of LLC Units by the pre-IPO owners of the LLC, the Company continuously monitors changes in its overall tax posture, including changes resulting from new legislation and changes as a result of new jurisdictions in which the Company is subject to tax. As of June 30, 2023 and 2022, the Company recorded deferred tax assets of $118,148 and $115,952, respectively, associated with basis differences in assets upon acquiring an interest in the LLC and pursuant to making an election under Section 754 of the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as amended. These basis differences are included in the overall partnership basis differences disclosed in Note 13. The aggregate Tax Receivable Agreement liability represents 85% of the tax benefits that the Company expects to receive in connection with the Section 754 election. In accordance with the Tax Receivable Agreement, the next annual payment is anticipated approximately 75 days after filing the federal tax return due by April 15, 2024.

X
- Definition Tax Receivable Agreement [Abstract] + References No definition available. + Details
Name: | mbuu_TaxReceivableAgreementAbstract
Namespace Prefix: | mbuu_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tax Receivable Agreement [Text Block] + References No definition available. + Details
Name: | mbuu_TaxReceivableAgreementTextBlock
Namespace Prefix: | mbuu_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration