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Income Taxes | 12 Months Ended
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Jun. 30, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The current and deferred components of the provision for income taxes consist of the following:
|  | For the Years Ended June 30,
(In thousands) |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Federal |  | $ | (1,774 | ) |  | $ | 101 |  |  | $ | 132 |
State |  | 231 |  |  | 56 |  |  | 340 |
Total current income tax (benefit) expense |  | (1,543 | ) |  | 157 |  |  | 472 |
Deferred: |  |  |  |  |  |
Federal |  | 30,618 |  |  | 17,090 |  |  | 12,120 |
State |  | 11,036 |  |  | 65 |  |  | 2,223 |
Total deferred income tax expense |  | 41,654 |  |  | 17,155 |  |  | 14,343 |
Income tax expense |  | $ | 40,111 |  |  | $ | 17,312 |  |  | $ | 14,815 |
A reconciliation of income tax expense to the federal statutory tax rate is as follows:
|  | For the Years Ended June 30,
(In thousands) |  | 2019 |  | 2018 |  |  | 2017
Statutory tax rate |  | 21 | % |  | 28 | % |  | 35 | %
Income tax (benefit) expense at statutory rate |  | $ | (7,032 | ) |  | $ | (272 | ) |  | $ | 13,078 |
State income tax (benefit) expense, net of federal tax benefit |  | (1,295 | ) |  | 12 |  |  | 1,707 |
Dividend income exclusion |  | — |  |  | — |  |  | (134 | )
Valuation allowance |  | 50,123 |  |  | 283 |  |  | (14 | )
Change in tax rate |  | 124 |  |  | 18,022 |  |  | (54 | )
Retiree life insurance |  | — |  |  | 19 |  |  | 1 |
Other (net) |  | (1,809 | ) |  | (752 | ) |  | 231 |
Income tax expense |  | $ | 40,111 |  |  | $ | 17,312 |  |  | $ | 14,815 |
On December 22, 2017, the President of the United States signed into law the Tax Act. The SEC subsequently issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. Under SAB 118, companies are able to record a reasonable estimate of the impacts of the Tax Act if one is able to be determined and report it as a provisional amount during the measurement period. The measurement period is not to extend beyond one year from the enactment date. Impacts of the Tax Act that a company is not able to make a reasonable estimate for should not be recorded until a reasonable estimate can be made during the measurement period. The incremental net tax impact recorded upon completion of the analysis of the income tax effects of the U.S. tax law changes was not material to our Consolidated Condensed Financial Statements. Pursuant to the Tax Act, the federal corporate tax rate was reduced to 21.0%, effective for the tax years beginning on or after January 1, 2018. Deferred tax amounts are calculated based on the rates at which they are expected to reverse in the future. The provisional amount recorded in fiscal 2018 relating to the re-measurement of the Company’s deferred tax balances as a result of the reduction in the corporate tax rate was $18.0 million. The Company finalized its assessment of the income tax effects of the Tax Act in the second quarter of fiscal years ended June 30, 2019. The primary components of the temporary differences which give rise to the Company’s net deferred tax assets (liabilities) are as follows:
|  | As of June 30,
(In thousands) |  | 2019 |  | 2018 |
Deferred tax assets: |  |  |  |  |
Postretirement benefits |  | $ | 20,775 |  |  | $ | 18,862 |  |
Accrued liabilities |  | 5,042 |  |  | 4,754 |  |
Net operating loss carryforwards |  | 37,768 |  |  | 32,552 |  |
Other |  | 5,950 |  |  | 6,728 |  |
Total deferred tax assets |  | 69,535 |  |  | 62,896 |  |
Deferred tax liabilities: |  |  |  |  |
Fixed assets |  | (15,562 | ) |  | (16,156 | ) |
Other |  | (3,749 | ) |  | (5,536 | ) |
Total deferred tax liabilities |  | (19,311 | ) |  | (21,692 | ) |
Valuation allowance |  | (52,019 | ) |  | (1,896 | ) |
Net deferred tax assets (liabilities) |  | $ | (1,795 | ) |  | $ | 39,308 |  |
As a result of adopting ASU 2016-09 in fiscal 2018 on a modified retrospective basis, with a cumulative effect adjustment to opening retained earnings, the table of deferred tax assets and liabilities shown above includes deferred tax assets at June 30, 2017 that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. At June 30, 2019, the Company had approximately $146.8 million in federal and $113.4 million in state net operating loss carryforwards that will expire from June 30, 2020 to June 30, 2030. Additionally, at June 30, 2019, the Company had $0.8 million of federal business tax credits that will expire from June 30, 2025 to June 30, 2038 and approximately $1.7 million of federal alternative minimum tax credits that do not expire, and of which $0.8 million is currently refundable. At June 30, 2019, the Company had total deferred tax assets of $69.5 million and net deferred tax assets of $50.2 million before valuation allowance of $52.0 million. In assessing if the deferred tax assets will be realized, the Company considers whether it is probable that some or all of the deferred tax assets will not be realized. In determining whether the deferred taxes are realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, and tax liabilities for the tax jurisdiction in which the tax asset is located. Valuation allowances are provided to reduce the amounts of deferred tax assets to an amount that is more likely than not to be realized based on an assessment of positive and negative evidence, including estimates of future taxable income necessary to realize future deductible amounts. For the years ended June 30, 2019, 2018 and 2017, due to recent cumulative losses, the Company conclude that certain federal and state net operating loss carry forwards and tax credit carryovers will not be utilized before expiration. The amounts of valuation allowance recorded in the Consolidated Balance Sheets were $52.0 million, $1.9 million and $1.6 million to reduce deferred tax assets in fiscal 2019, 2018 and 2017, respectively. The Company's valuation allowance increased in fiscal 2019 and 2018 by $50.1 million and $0.3 million, respectively. As of, and for the three years ended June 30, 2019, 2018 and 2017, the Company had no significant uncertain tax positions. 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, 2016. Although the outcome of tax audits is always uncertain, the Company does not believe the outcome of any future audit will have a material adverse effect on the Company’s consolidated financial statements. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. There were no amount of interest and penalties recognized in the Consolidated Balance Sheets in the fiscal years ended June 30, 2019 and 2018, associated with uncertain tax positions. Additionally, the Company did not record any income tax expense related to interest and penalties on uncertain tax positions in the fiscal years ended June 30, 2019, 2018 and 2017, 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://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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