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Income Taxes
9 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Tax Disclosure Income Taxes
Effective Tax Rate
Our effective tax rates for the three and nine months ended March 31, 2021 were 28.2% and 22.6%, respectively; compared to 16.9% and 5.9% for the three and nine months ended March 31, 2020, respectively. Based on the third quarter and full year projected operating results for fiscal 2021, the Company, through provisions in the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), has an income tax benefit from the ability to carryback the fiscal 2021 federal net operating loss five years. $3.2 million of this benefit impacts the effective rate for the third quarter and is a result of the statutory federal income tax rate differential between the current and carryback years. The effective rate during the quarter was negatively impacted by $1.9 million of valuation allowances on certain deferred tax assets. In prior quarters this fiscal year, the Company recorded $1.2 million of other discrete deferred tax asset adjustments, which negatively impacted the effective rate for the nine months ended March 31, 2021. The Company estimates that it will receive a $7.8 million tax refund in connection with the carryback of the projected fiscal 2021 net operating loss, which is included in income taxes receivable in the condensed consolidated balance sheets.
Deferred Payroll Taxes
The Company has deferred $11.1 million of U.S. payroll tax as of March 31, 2021 through provisions of CARES Act. The deferred payroll taxes are included within other accrued expenses and other liabilities in the consolidated balance sheets. The Company must repay half of the deferred payroll tax by December 31, 2021 and the remainder by December 31, 2022.