Income Taxes (Tables)
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12 Months Ended |
Jun. 30, 2023 |
Income Taxes |
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Schedule of deferred tax assets and liabilities |
| | | | | | | | | June 30, | | | 2023 | | 2022 | | | | (In thousands) | Deferred tax assets | | | | | | | Net operating loss carryforward | | $ | 17,628 | | $ | 19,613 | Reserves | | | 7,850 | | | 8,306 | Accrued expenses | | | 10,868 | | | 11,524 | Stock compensation expense | | | 4,548 | | | 5,166 | Other assets | | | 3,212 | | | 5,218 | Convertible debt | | | 8,632 | | | 11,005 | Deferred revenue | | | 680 | | | 591 | Lease liability | | | 17,900 | | | 21,680 | Total deferred tax assets | | | 71,318 | | | 83,103 | Deferred tax liabilities | | | | | | | Capitalized curriculum development | | | (9,038) | | | (9,269) | Capitalized software and website development costs | | | (2,987) | | | (17,789) | Property and equipment | | | (8,438) | | | (10,547) | Right-of-use assets | | | (16,837) | | | (21,062) | Returned materials | | | (2,980) | | | (3,503) | Purchased intangibles | | | (15,471) | | | (17,461) | Total deferred tax liabilities | | | (55,751) | | | (79,631) | Net deferred tax asset (liability) before valuation allowance | | | 15,567 | | | 3,472 | Valuation allowance | | | (6,791) | | | (6,677) | Net deferred tax asset (liability) | | $ | 8,776 | | $ | (3,205) | Reported as: | | | | | | | Long-term deferred tax assets (liabilities) | | $ | 8,776 | | $ | (3,205) |
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Schedule of components of income before income taxes |
| | | | | | | | | | | | Year Ended June 30, | | | 2023 | | 2022 | | 2021 | | | | (In thousands) | Domestic | | $ | 161,270 | | $ | 131,967 | | $ | 81,068 | Foreign | | | 10,943 | | | 15,251 | | | 14,922 | Total income before income taxes | | $ | 172,213 | | $ | 147,218 | | $ | 95,990 |
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Schedule of related components of the income tax expense |
| | | | | | | | | | | | Year Ended June 30, | | | 2023 | | 2022 | | 2021 | | | | (In thousands) | Current: | | | | | | | | | | Federal | | $ | 41,360 | | $ | 27,969 | | $ | 12,290 | State | | | 12,032 | | | 7,550 | | | 6,643 | Foreign | | | 2,327 | | | 3,379 | | | 3,057 | Total current | | | 55,719 | | | 38,898 | | | 21,990 | Deferred: | | | | | | | | | | Federal | | | (9,033) | | | 1,743 | | | 2,287 | State | | | (1,340) | | | (553) | | | 262 | Total deferred | | | (10,373) | | | 1,190 | | | 2,549 | Total income tax expense (benefit) | | $ | 45,346 | | $ | 40,088 | | $ | 24,539 |
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Schedule of reconciliation of provision for income taxes to the income tax from applying the statutory rate |
| | | | | | | | | | Year Ended June 30, | | | | 2023 | | 2022 | | 2021 | | U.S. federal tax at statutory rates | | 21.0 | % | 21.0 | % | 21.0 | % | Permanent items | | - | | 0.4 | | (0.4) | | Lobbying | | 0.1 | | 0.1 | | 0.2 | | Non-deductible compensation | | 1.6 | | 9.3 | | 4.9 | | State taxes, net of federal benefit | | 4.4 | | 3.5 | | 5.8 | | Research and development tax credits | | (1.4) | | (0.8) | | (0.9) | | Change in valuation allowance | | (0.4) | | 0.8 | | (0.1) | | Effects of foreign operations | | 0.9 | | 0.3 | | 0.4 | | Reserve for unrecognized tax benefits | | 0.9 | | 0.5 | | 0.2 | | Other | | (0.5) | | (1.2) | | (0.5) | | Stock-based compensation | | (0.3) | | (6.7) | | (5.0) | | Provision for (benefit from) income taxes | | 26.3 | % | 27.2 | % | 25.6 | % |
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Schedule of unrecognized tax benefits |
| | | | | | | | | | | | Year Ended June 30, | | | 2023 | | 2022 | | 2021 | | | | (In thousands) | Balance at beginning of the year | | $ | 1,729 | | $ | 1,057 | | $ | 850 | Additions for prior year tax positions | | | 568 | | | 364 | | | 196 | Additions for current year tax positions | | | 1,106 | | | 482 | | | 261 | Reductions for prior year tax positions | | | (247) | | | (173) | | | (250) | Balance at end of the year | | $ | 3,156 | | $ | 1,729 | | $ | 1,057 |
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