Income Taxes	9 Months Ended
Mar. 31, 2018
Income Taxes
Income Taxes	Note 19. Income Taxes The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. The federal, state and local income tax benefit for the three months ended March 31, 2018 was $2.3 million compared to income tax expense of $7.3 million for the three months ended March 31, 2017. The effective tax rates for the three months ended March 31, 2018 and 2017 were (21.7)% and 33.0%, respectively. The federal, state and local income tax expense for the nine months ended March 31, 2018 was $23.3 million compared to income tax benefit of $2.0 million for the nine months ended March 31, 2017. The effective tax rates were 36.8% and 24.2%, respectively. The effective tax rate for the nine months ended March 31, 2018 was higher compared to the same prior-year period primarily due to 2017 Tax Reform which was signed into law on December 22, 2017. Among numerous provisions included in the new law was the reduction of the statutory corporate federal income tax rate from 35% to 21%. In the second quarter of Fiscal 2018, the Company applied the newly enacted corporate federal income tax rate of 21% resulting in an approximately $11.1 million revaluation of the Company’s net long term deferred tax assets which are expected to reverse in future periods. During the third quarter of Fiscal 2018, the Company revised its provisional calculation for timing items related to the filing of its Fiscal 2017 tax return. As a result, the Company reduced the previously recorded revaluation amount to $8.1 million in the third quarter of Fiscal 2018. The increase in the effective tax rate as a result of the revaluation was partially offset by a lower blended federal statutory tax rate of approximately 28.0% as compared to 35.0% in the same prior-year period. This resulted in an approximately $4.6 million income tax benefit for the nine months ended March 31, 2018. The effective tax rate for the three months ended March 31, 2018 was lower compared to the same prior-year period primarily due to the impact for timing items related to the filing of the Company’s Fiscal 2017 tax return discussed above. The lower blended federal statutory tax rate of approximately 28.0% due to 2017 Tax Reform also contributed to a lower effective tax rate. This resulted in an approximately $763 thousand income tax benefit for the three months ended March 31, 2018. Overall, the Company anticipates the decrease in the U.S. federal statutory rate resulting from the enactment of the 2017 Tax Reform will have a favorable impact on future U.S. tax expense and operating cash flows. The Company initially recorded the impact of 2017 Tax Reform in the second quarter of Fiscal 2018, inclusive of provisional amounts based on reasonable estimates. However, the final impact of 2017 Tax Reform may differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions the Company may take as a result of 2017 Tax Reform. Adjustments, if any, will be made in accordance with SAB 118. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2018 and June 30, 2017, the Company has total unrecognized tax benefits of $1.7 million and $5.9 million, respectively. The decrease was primarily the result of an expiration in the statute of limitations related to several state-related unrecognized tax benefits. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended March 31, 2018 in the statement of operations and no cumulative interest and penalties have been recorded in the Company’s statement of financial position as of March 31, 2018 and June 30, 2017. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2014 and prior generally are no longer subject to review as such years generally are closed. The Company’s Fiscal Year 2016 federal return is currently under examination by the Internal Revenue Service (“IRS”). The Company cannot reasonably predict the outcome of the examination at this time.

Note 19. Income Taxes

The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities.

The federal, state and local income tax benefit for the three months ended March 31, 2018 was $2.3 million compared to income tax expense of $7.3 million for the three months ended March 31, 2017. The effective tax rates for the three months ended March 31, 2018 and 2017 were (21.7)% and 33.0%, respectively. The federal, state and local income tax expense for the nine months ended March 31, 2018 was $23.3 million compared to income tax benefit of $2.0 million for the nine months ended March 31, 2017. The effective tax rates were 36.8% and 24.2%, respectively.

The effective tax rate for the nine months ended March 31, 2018 was higher compared to the same prior-year period primarily due to 2017 Tax Reform which was signed into law on December 22, 2017. Among numerous provisions included in the new law was the reduction of the statutory corporate federal income tax rate from 35% to 21%. In the second quarter of Fiscal 2018, the Company applied the newly enacted corporate federal income tax rate of 21% resulting in an approximately $11.1 million revaluation of the Company’s net long term deferred tax assets which are expected to reverse in future periods. During the third quarter of Fiscal 2018, the Company revised its provisional calculation for timing items related to the filing of its Fiscal 2017 tax return. As a result, the Company reduced the previously recorded revaluation amount to $8.1 million in the third quarter of Fiscal 2018. The increase in the effective tax rate as a result of the revaluation was partially offset by a lower blended federal statutory tax rate of approximately 28.0% as compared to 35.0% in the same prior-year period. This resulted in an approximately $4.6 million income tax benefit for the nine months ended March 31, 2018.

The effective tax rate for the three months ended March 31, 2018 was lower compared to the same prior-year period primarily due to the impact for timing items related to the filing of the Company’s Fiscal 2017 tax return discussed above. The lower blended federal statutory tax rate of approximately 28.0% due to 2017 Tax Reform also contributed to a lower effective tax rate. This resulted in an approximately $763 thousand income tax benefit for the three months ended March 31, 2018.

Overall, the Company anticipates the decrease in the U.S. federal statutory rate resulting from the enactment of the 2017 Tax Reform will have a favorable impact on future U.S. tax expense and operating cash flows. The Company initially recorded the impact of 2017 Tax Reform in the second quarter of Fiscal 2018, inclusive of provisional amounts based on reasonable estimates. However, the final impact of 2017 Tax Reform may differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions the Company may take as a result of 2017 Tax Reform. Adjustments, if any, will be made in accordance with SAB 118.

The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

As of March 31, 2018 and June 30, 2017, the Company has total unrecognized tax benefits of $1.7 million and $5.9 million, respectively. The decrease was primarily the result of an expiration in the statute of limitations related to several state-related unrecognized tax benefits. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended March 31, 2018 in the statement of operations and no cumulative interest and penalties have been recorded in the Company’s statement of financial position as of March 31, 2018 and June 30, 2017. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses.

The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2014 and prior generally are no longer subject to review as such years generally are closed. The Company’s Fiscal Year 2016 federal return is currently under examination by the Internal Revenue Service (“IRS”). The Company cannot reasonably predict the outcome of the examination at this time.