Income Taxes

6 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

16. Income Taxes

The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment.  The Company is currently under examination by the Internal Revenue Service for year 2016.  The Company does not expect resolution of this examination to have a material impact on its results of operations, financial condition or cash flows.

The Company’s total liability for unrecognized tax benefits as of December 31, 2020 and June 30, 2020 was $9.5 million and $8.8 million, respectively. The $9.5 million unrecognized tax benefit at December 31, 2020, if recognized, would positively impact the Company’s effective tax rate.

The Company’s effective tax rate for the three and six months ended December 31, 2020 and 2019 are reflected below (in thousands):

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
Income tax expense	$	25,974		$	16,278		$	56,774		$	31,647
Effective income tax rate		19.6	%		17.1	%		22.1	%		17.7	%

The effective income tax rate was 19.6 percent and 22.1 percent for the three and six months ended December 31, 2020, respectively, compared with 17.1 percent and 17.7 percent, respectively, for the same periods last year.  For both comparative reporting periods, the increase in the effective tax rate was primarily due to a decrease in excess tax benefits related to employee stock-based compensation, partially offset by favorable changes related to the value of assets invested in COLI policies