Income Taxes	6 Months Ended
Dec. 31, 2019
Income Taxes
Income Taxes	Note 17. 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 December 31, 2019 was $5.3 million compared to an income tax expense of $2.6 million for the three months ended December 31, 2018. The effective tax rates for the three months ended December 31, 2019 and 2018 were 2369.6% and 17.6%, respectively. The effective tax rate for the three months ended December 31, 2019 was higher compared to the three months ended December 31, 2018 primarily due to tax credits and deductions relative to a lower pre-tax loss in the three months ended December 31, 2019. The federal, state and local income tax benefit for the six months ended December 31, 2019 was $3.5 million compared to $73.0 million for the six months ended December 31, 2018. The effective tax rates for the six months ended December 31, 2019 and 2018 were 33.2% and 21.0%, respectively. The effective tax rate for the six months ended December 31, 2019 was higher compared to the six months ended December 31, 2018 primarily due to research and development credits relative to expected pre-tax loss, partially offset by the impact of excess tax shortfalls related to stock compensation. 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 December 31, 2019 and June 30, 2019, the Company has total unrecognized tax benefits of $2.4 million and $2.2 million, respectively, of which $2.1 million would impact the Company’s effective tax rate for each period, if recognized. As a result of the positions taken during the period, the Company has not recorded any material interest and penalties for the period ended December 31, 2019 in the statement of operations and no cumulative interest and penalties have been recorded either in the Company’s statement of financial position as of December 31, 2019 and June 30, 2019. 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 2014 - 2016 federal returns are currently under examination by the Internal Revenue Service (“IRS”). In October 2018, the Company was notified that the Commonwealth of Pennsylvania will conduct a routine field audit of the Company’s Fiscal 2016 and Fiscal 2017 corporate tax returns. The Company cannot reasonably predict the outcome of the examinations at this time. In December 2019, the Company was notified that the Florida Department of Revenue will conduct a routine field audit of the Company’s Fiscal 2016, 2017 and 2018 corporate tax returns.

Note 17. 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 December 31, 2019 was $5.3 million compared to an income tax expense of $2.6 million for the three months ended December 31, 2018. The effective tax rates for the three months ended December 31, 2019 and 2018 were 2369.6% and 17.6%, respectively. The effective tax rate for the three months ended December 31, 2019 was higher compared to the three months ended December 31, 2018 primarily due to tax credits and deductions relative to a lower pre-tax loss in the three months ended December 31, 2019.

The federal, state and local income tax benefit for the six months ended December 31, 2019 was $3.5 million compared to $73.0 million for the six months ended December 31, 2018. The effective tax rates for the six months ended December 31, 2019 and 2018 were 33.2% and 21.0%, respectively. The effective tax rate for the six months ended December 31, 2019 was higher compared to the six months ended December 31, 2018 primarily due to research and development credits relative to expected pre-tax loss, partially offset by the impact of excess tax shortfalls related to stock compensation.

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 December 31, 2019 and June 30, 2019, the Company has total unrecognized tax benefits of $2.4 million and $2.2 million, respectively, of which $2.1 million would impact the Company’s effective tax rate for each period, if recognized. As a result of the positions taken during the period, the Company has not recorded any material interest and penalties for the period ended December 31, 2019 in the statement of operations and no cumulative interest and penalties have been recorded either in the Company’s statement of financial position as of December 31, 2019 and June 30, 2019. 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 2014 - 2016 federal returns are currently under examination by the Internal Revenue Service (“IRS”). In October 2018, the Company was notified that the Commonwealth of Pennsylvania will conduct a routine field audit of the Company’s Fiscal 2016 and Fiscal 2017 corporate tax returns. The Company cannot reasonably predict the outcome of the examinations at this time. In December 2019, the Company was notified that the Florida Department of Revenue will conduct a routine field audit of the Company’s Fiscal 2016, 2017 and 2018 corporate tax returns.