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Income Taxes
 12 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We file a consolidated federal income tax return. Taxes based on income for the years ended June 30 have been provided as follows:
202220212020
Currently payable:
Federal$19,751 $32,655 $23,392 
State and local1,974 7,460 6,808 
Total current provision21,725 40,115 30,200 
Deferred federal, state and local provision1,077 3,298 11,894 
Total taxes based on income$22,802 $43,413 $42,094 
For the years ended June 30, our effective tax rate varied from the statutory federal income tax rate as a result of the following factors:
202220212020
Statutory rate21.0 %21.0 %21.0 %
State and local income taxes0.7 3.2 3.1 
Research and development tax credit(1.7)(0.8)— 
Net windfall tax benefits - stock-based compensation(0.1)(0.6)(0.8)
Other0.4 0.6 0.2 
Effective rate20.3 %23.4 %23.5 %
Our net deferred tax liability for all periods presented has been classified as noncurrent. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 were comprised of:
20222021
Deferred tax assets:
Employee medical and other benefits$6,638 $6,853 
Operating lease liabilities6,553 5,181 
Receivables2,756 2,175 
Inventories1,668 3,003 
Other accrued liabilities1,443 1,719 
Total deferred tax assets19,058 18,931 
Deferred tax liabilities:
Property, plant and equipment(33,738)(31,052)
Goodwill(15,930)(14,174)
Operating lease right-of-use assets(6,726)(5,298)
Intangible assets(1,494)(7,076)
Other(59)(33)
Total deferred tax liabilities(57,947)(57,633)
Net deferred tax liability$(38,889)$(38,702)
Prepaid federal income taxes of $5.1 million were included in Other Current Assets at June 30, 2021. Prepaid state and local income taxes of $1.9 million and $1.1 million were included in Other Current Assets at June 30, 2022 and 2021, respectively.
Net cash payments for income taxes for each of the years ended June 30 were as follows:
202220212020
Net cash payments for income taxes$17,827 $40,735 $30,958 
The gross tax contingency reserve at June 30, 2022 was $0.9 million and consisted of estimated tax liabilities of $0.4 million and interest and penalties of $0.5 million. The unrecognized tax benefits recorded as the gross tax contingency reserve noted in the following table for June 30, 2022 and 2021 would affect our effective tax rate, if recognized.
The following table sets forth changes in our total gross tax contingency reserve (including interest and penalties):
20222021
Balance, beginning of year$1,253 $968 
Tax positions related to the current year:
Additions— — 
Reductions— — 
Tax positions related to prior years:
Additions45 311 
Reductions(373)(26)
Settlements— — 
Balance, end of year$925 $1,253 
We have not classified any of the gross tax contingency reserve at June 30, 2022 in Accrued Liabilities as none of these amounts are expected to be resolved within the next 12 months. Consequently, the entire liability of $0.9 million was included in Other Noncurrent Liabilities. We expect that the amount of these liabilities will change within the next 12 months; however, we do not expect the change to have a significant effect on our financial position or results of operations.
We recognize interest and penalties related to these tax liabilities in income tax expense. For each of the years ended June 30, we recognized the change in the accrual for net tax-related interest and penalties as follows:
20222021
(Benefit) expense recognized for net tax-related interest and penalties$(22)$48 
We had accrued interest and penalties at June 30 as follows:
20222021
Accrued interest and penalties included in the gross tax contingency reserve$507 $529 
We file federal and various state and local income tax returns in the United States. With limited exceptions, we are no longer subject to examination of U.S. federal or state and local income taxes for years prior to 2019.