Income Taxes Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) is comprised of the following components:

	Years Ended June 30,
	2020			2019		2018
Current expense:
Federal	$	49,971		$	48,769	$	64,021
State and other	27,451			31,791		30,651
	77,422			80,560		94,672
Deferred expense (benefit):
Federal	(532		)	134		(109,145		)
State and other	(3,027		)	2,021		(1,851		)
	(3,559		)	2,155		(110,996		)
Tax benefit relating to uncertain tax positions	—			—		(14		)
Income tax expense (benefit)	$	73,863		$	82,715	$	(16,338	)

Schedule of Effective Income Tax Rate Reconciliation

The income tax expense (benefit) differs from the amount derived by applying the statutory federal rate to pre-tax income principally due to the effect of the following items:

	Years Ended June 30,
	2020			2019			2018
Federal tax expense at statutory federal rate(a)	$	54,408		$	56,468		$	76,470
State and local income taxes, net of federal benefit	21,312			23,910			21,372
Change in the estimated applicable tax rate used to determine deferred taxes	(1,899		)	1,398			(497		)
Impact of Tax Cuts and Jobs Act on deferred taxes	—			—			(106,446		)
Domestic production activities tax deduction	—			—			(3,585		)
Tax benefit relating to uncertain tax positions	—			—			(14		)
Tax return to GAAP provision adjustments	(420		)	(1,770		)	(3,411		)
Impact of nondeductible officers’ compensation(b)	2,046			2,989			—
Excess tax benefit related to share-based payment awards	(1,576		)	(515		)	(312		)
Nondeductible expenses and other	(8		)	235			85
Income tax expense (benefit)	$	73,863		$	82,715		$	(16,338	)

^(a) On December 22, 2017, the enactment of the Tax Cuts and Jobs Act (“TCJA”) significantly changed the U.S. tax laws and included a reduction in the corporate federal tax rate from 35% to 21% effective January 1, 2018. For the year ended June 30, 2018, the Company used a blended statutory federal rate of 28% (based upon the number of days for the fiscal year ended 2018 that it will be taxed at the former rate of 35% and the number of days it will be taxed at the new rate of 21%).

^(b) The TCJA included changes to Internal Revenue Code Section 162(m), including elimination of the exception for qualified performance-based compensation over the $1 million annual limit. Accordingly, effective January 1, 2018, all compensation for certain officers in excess of $1 million is nondeductible.

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences which give rise to significant portions of the deferred tax assets and liabilities included in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 are as follows:

	June 30,
	2020			2019
Deferred tax asset (liability)
Investment in MSGN L.P.	$	(247,786	)	$	(249,143	)
Compensation and benefit plans	8,244			5,747
Net noncurrent deferred tax liability	$	(239,542	)	$	(243,396	)