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Income Taxes
6 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

NOTE 13 – INCOME TAXES

For the three and six months ended December 31, 2020 and 2019, respectively, the Company’s income tax expense is composed of the following:

 

 

Three Months Ended December 31,

 

 

Six Months Ended December 31,

 

(In thousands)

2020

 

 

2019

 

 

2020

 

 

2019

 

Current income tax expense

$

1,743

 

 

$

1,448

 

 

$

2,905

 

 

$

2,465

 

Deferred income tax benefit

 

(341

)

 

 

(487

)

 

 

(426

)

 

 

(717

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

$

1,402

 

 

$

961

 

 

$

2,479

 

 

$

1,748

 

 

The Company’s effective tax rates prior to discrete items for the three and six months ended December 31, 2020 and 2019 are higher than the U.S. federal statutory rates primarily due to earnings in foreign operations and state taxes. The effective tax rate was 26.5% and 25.8% for the three and six months ended December 31, 2020, respectively. The three and six months’ effective tax rates were higher than the U.S. federal statutory rate due to earnings in foreign operations, state taxes, and share-based compensation expenses, which are discretely recognized in the quarter and is not a component of the Company’s annualized forecasted effective tax rate for fiscal year 2021. The Company does not have any uncertain tax positions.

The Company and its wholly-owned U.S. subsidiaries file a consolidated Federal income tax return. The Company also files unitary or separate returns in various state, local, and non-U.S. jurisdictions based on state, local and non-U.S. filing requirements. The tax years which remain subject to examination by U.S. authorities are the years ended June 30, 2018 through June 30, 2020. Tax years which remain subject to examination by state authorities are the years ended June 30, 2016 through June 30, 2020. Tax years which remain subject to examination by non-U.S. authorities are the periods ended June 30, 2016 through June 30, 2020. Occasionally acquired entities have tax years that differ from the Company and are still open under the relevant statute of limitations and therefore are subject to potential adjustment.

The Company is no longer under examination by the US Internal Revenue Service for the fiscal year 2018. During the quarter ended December 31, 2020, the Company was formally notified that the audit had been closed with the Internal Revenue Service and that no adjustments were assessed.