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Income Taxes
3 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
For the three months ended September 30, 2020 and 2019, the Company recognized income tax benefits of $1.1 million and $0.4 million, respectively, representing an effective tax rate of 413.5% and 20.7%, respectively. The differences from the Company’s federal statutory tax rates to the effective tax rates for the three months ended September 30, 2020, were primarily related to discrete items impacting the quarter. The effective tax rate for the three months ended September 30, 2019, was primarily impacted by state income taxes and non-deductible meals and entertainment expenses, partially offset by Kansas High Performance Incentive Program (“HPIP”) tax credits.

Assessing the realizability of the Company’s deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. The Company forecasts taxable income by considering all available positive and negative evidence, including historical data and future plans and estimates. These assumptions require significant judgment about future taxable income. As a result, the amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. The Company continues to recognize its deferred tax assets as of September 30, 2020, as it believes it is more likely than not that the net deferred tax assets will be realized. The Company recognizes a significant deferred tax liability due to the timing of recognizing revenue when a policy is sold, while revenue recognition for tax purposes is not recognized until future renewal commission payments are received. This deferred tax liability is a source of income that can be used to support the realizability of the Company’s deferred tax assets. As such, the Company does not believe a valuation allowance is necessary as of September 30, 2020, and will continue to evaluate in the future as circumstances may change.