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Income Taxes | 12 Months Ended
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Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The current and deferred components of the provision for income taxes consist of the following:
|  | June 30,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |  |
Federal |  | $ | 132 |  |  | $ | 214 |  |  | $ | (30 | )
State |  | 340 |  |  | 103 |  |  | 309 |
Total current income tax expense |  | 472 |  |  | 317 |  |  | 279 |
Deferred: |  |  |  |  |  |
Federal |  | 13,110 |  |  | (66,648 | ) |  | 106 |
State |  | 2,372 |  |  | (13,666 | ) |  | 17 |
Total deferred income tax expense (benefit) |  | 15,482 |  |  | (80,314 | ) |  | 123 |
Income tax expense (benefit) |  | $ | 15,954 |  |  | $ | (79,997 | ) |  | $ | 402 |
A reconciliation of income tax expense (benefit) to the federal statutory tax rate is as follows:
|  | June 30,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Statutory tax rate |  | 35 | % |  | 35 | % |  | 34 | %
Income tax expense at statutory rate |  | $ | 14,121 |  |  | $ | 3,472 |  |  | $ | 358 |
State income tax expense, net of federal tax benefit |  | 1,819 |  |  | 557 |  |  | 260 |
Dividend income exclusion |  | (134 | ) |  | (140 | ) |  | (54 | )
Valuation allowance |  | (13 | ) |  | (83,230 | ) |  | (185 | )
Change in tax rate |  | — |  |  | (1,061 | ) |  | — |
Retiree life insurance |  | (69 | ) |  | 135 |  |  | — |
Change in contingency reserve (net) |  | 1 |  |  | — |  |  | — |
Other (net) |  | 229 |  |  | 270 |  |  | 23 |
Income tax expense (benefit) |  | $ | 15,954 |  |  | $ | (79,997 | ) |  | $ | 402 |
The primary components of the temporary differences which give rise to the Company’s net deferred tax assets (liabilities) are as follows:
|  | June 30,
(In thousands) |  | 2017 |  | 2016 |  | 2015
Deferred tax assets: |  |  |  |  |  |
Postretirement benefits |  | $ | 30,253 |  |  | $ | 33,273 |  |  | $ | 31,100 |
Accrued liabilities |  | 7,885 |  |  | 11,760 |  |  | 10,091 |
Net operating loss carryforwards |  | 38,985 |  |  | 38,196 |  |  | 41,544 |
Intangible assets |  | — |  |  | 71 |  |  | 594 |
Other |  | 6,824 |  |  | 6,881 |  |  | 6,794 |
Total deferred tax assets |  | 83,947 |  |  | 90,181 |  |  | 90,123 |
Deferred tax liabilities: |  |  |  |  |  |
Unrealized gain on investments |  | — |  |  | (609 | ) |  | (2,242 | )
Fixed assets |  | (17,096 | ) |  | (5,370 | ) |  | (2,647 | )
Other |  | (2,181 | ) |  | (1,789 | ) |  | (1,943 | )
Total deferred tax liabilities |  | (19,277 | ) |  | (7,768 | ) |  | (6,832 | )
Valuation allowance |  | (1,615 | ) |  | (1,627 | ) |  | (84,857 | )
Net deferred tax assets (liabilities) |  | $ | 63,055 |  |  | $ | 80,786 |  |  | $ | (1,566 | )
At June 30, 2017, the Company had approximately $101.8 million in federal and $97.7 million in state net operating loss carryforwards that will begin to expire in the years ending June 30, 2030 and June 30, 2017, respectively. Additionally, at June 30, 2017, the Company had $0.8 million of federal business tax credits that begin to expire in June 30, 2025 and approximately $1.7 million of federal alternative minimum tax credits that do not expire. The Company recognizes windfall tax benefits associated with the exercise of share-based compensation directly to stockholders' equity only when realized. Accordingly deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits occurring from July 1, 2006 onward. At June 30, 2017, deferred tax assets do not include $1.6 million in excess tax benefits from stock compensation. As discussed in Note 2, the Company will adopt ASU 2016-09 beginning July 1, 2017. Upon adoption the excess tax benefits of $1.6 million will be recorded as an increase to deferred tax assets and a corresponding increase to retained earnings. At June 30, 2017, the Company had total deferred tax assets of $83.9 million and net deferred tax assets before valuation allowance of $64.7 million. The Company considered whether a valuation allowance should be recorded against deferred tax assets based on the likelihood that the benefits of the deferred tax assets would or would not ultimately be realized in future periods. In making such assessment, significant weight was given to evidence that could be objectively verified such as recent operating results and less consideration was given to less objective indicators such as future income projections. After consideration of positive and negative evidence, including the recent history of income, the Company concluded that it is more likely than not that the Company will generate future income sufficient to realize the majority of the Company’s deferred tax assets as of June 30, 2017. As of June 30, 2017, the Company cannot conclude that certain state net operating loss carry forwards and tax credit carryovers will be utilized before expiration. Accordingly, the Company will maintain a valuation allowance of $1.6 million to offset this deferred tax asset. There was no change to the valuation allowance in fiscal 2017. The valuation allowance decreased $83.2 million and increased $12.3 million, in fiscal 2016 and 2015, respectively. Total unrecognized tax benefits attributable to uncertain tax positions taken in tax returns in each of fiscal 2017, 2016 and 2015 were zero and at June 30, 2017 and 2016, the Company had no unrecognized tax benefits. The Company files income tax returns in the U.S. and in various state jurisdictions with varying statutes of limitations. The Company is no longer subject to U.S. income tax examinations for the fiscal years prior to June 30, 2013. The Internal Revenue Service completed its examination of the Company's tax years ended June 30, 2013 and 2014 and accepted the returns as filed. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. In each of the fiscal years ended June 30, 2017 and 2016, the Company recorded $0 in accrued interest and penalties associated with uncertain tax positions. Additionally, the Company recorded income of $0 related to interest and penalties on uncertain tax positions in the fiscal years ended June 30, 2017, 2016 and 2015, respectively.

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