XML 44 R25.htm IDEA: XBRL DOCUMENT
v3.23.2

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2023
Income Tax Disclosure [Abstract] |
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) |  | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | (22) |
State |  | 142 |  |  | 124 |  |  | 213 |
Total current income tax expense |  | 142 |  |  | 124 |  |  | 191 |
Deferred: |  |  |  |  |  |
Federal |  | (373) |  |  | — |  |  | 11,011 |
State |  | (94) |  |  | — |  |  | 2,726 |
Total deferred income tax (benefit) expense |  | (467) |  |  | — |  |  | 13,737 |
Income tax (benefit) expense |  | $ | (325) |  |  | $ | 124 |  |  | $ | 13,928 |
A reconciliation of income tax expense to the federal statutory tax rate is as follows:
|  | For the Years Ended June 30,
(In thousands) |  | 2023 |  | 2022 |  | 2021
Statutory tax rate |  | 21% |  | 21% |  | 21%
Income tax benefit at statutory rate |  | $ | (7,216) |  |  | $ | (389) |  |  | $ | (3,420) |
State income tax expense (benefit) (net of federal tax benefit) |  | 2,407 |  |  | (754) |  |  | (206) |
Valuation allowance |  | 3,788 |  |  | 1,767 |  |  | 1,835 |
Change in tax rate |  | (111) |  |  | (210) |  |  | 1,055 |
Post-retirement medical plan and other offset in OCI |  | (467) |  |  | — |  |  | 13,738 |
Other (net) |  | 1,274 |  |  | (290) |  |  | 926 |
Income tax (benefit) expense |  | $ | (325) |  |  | $ | 124 |  |  | $ | 13,928 |
Our federal corporate tax rate is 21%, 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. For the years ended June 30, 2023, 2022 and 2021, the Company’s income tax expense includes an increase in the valuation allowance related to the Company’s operating losses. 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) |  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Postretirement benefits |  | $ | 5,349 |  |  | $ | 7,284 |
Accrued liabilities |  | 2,642 |  |  | 4,759 |
163(j) Interest Limitation |  | 7,772 |  |  | 4,040 |
Net operating loss carryforward |  | 55,566 |  |  | 51,413 |
Intangible assets |  | 6,481 |  |  | 6,936 |
Right-of-use operating lease liabilities |  | 6,346 |  |  | 7,041 |
Other |  | 5,436 |  |  | 7,650 |
Total deferred tax assets |  | 89,592 |  |  | 89,123 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | (725) |  |  | (15,726) |
Right-of-use operating lease assets |  | (6,194) |  |  | (7,174) |
Other |  | (2,238) |  |  | (79) |
Total deferred tax liabilities |  | (9,157) |  |  | (22,979) |
Valuation allowance |  | (80,435) |  |  | (66,879) |
Net deferred tax liability |  | $ | — |  |  | $ | (735) |
At June 30, 2023, the Company had approximately $133.9 million of federal and $173.1 million of state net operating loss carryforwards that will begin to expire in the years ending June 30, 2027 and June 30, 2024, respectively. Net operating losses of $78.9 million in federal and $10.3 million of state are indefinite lived and will not expire. Additionally, at June 30, 2023, the Company had $0.9 million of federal and state tax credits. 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, 2023, 2022 and 2021, due to recent cumulative losses, the Company concluded 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 $80.4 million and $66.9 million to reduce deferred tax assets as of June 30, 2023 and 2022, respectively. As of, and for the three years ended June 30, 2023, 2022 and 2021, the Company had no significant uncertain tax positions. On August 16, 2022 the Inflation Reduction Act of 2022 was signed into law. The Company does not anticipate any material impact to our consolidated financial statements. 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, 2019. 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, 2023 and 2022, 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, 2023, 2022 and 2021.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration