Income Taxes (Text Block)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The provision for income taxes from continuing operations consists of the following:

	Year Ended June 30,
	2014		2013		2012
Current:
Federal	$	77,938	$	54,574	$	48,053
State	10,166		4,540		6,022
Deferred:
Federal	18,400		19,553		20,649
State	3,631		4,538		1,960
	$	110,135	$	83,205	$	76,684

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	June 30,
	2014			2013
Deferred tax assets:
Deferred revenue	$	4,996		$	5,846
Expense reserves (bad debts, insurance, franchise tax and vacation)	14,776			12,515
Net operating loss carryforwards	4,218			6,363
Other, net	1,122			1,383
	25,112			26,107
Deferred tax liabilities:
Accelerated tax depreciation	(29,247		)	(35,046		)
Accelerated tax amortization	(125,054		)	(106,147		)
Prepaid expenses	(29,264		)	(25,779		)
Other, net	(13,357		)	(9,714		)
	(196,922		)	(176,686		)
Net deferred tax liability before valuation allowance	(171,810		)	(150,579		)
Valuation allowance	(700		)	(700		)
Net deferred tax liability	$	(172,510	)	$	(151,279	)

The deferred taxes are classified on the balance sheets as follows:

	2014			2013
Deferred income taxes (current)	$	(37,592	)	$	(30,845	)
Deferred income taxes (long-term)	(134,918		)	(120,434		)
	$	(172,510	)	$	(151,279	)

The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:

	Year Ended June 30,
	2014		2013		2012
Computed "expected" tax expense	35.0	%	35.0	%	35.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	2.9	%	2.3	%	2.2	%
Research and development credit	(0.7	)%	(3.3	)%	(1.8	)%
Domestic production activities deduction	(2.1	)%	(2.2	)%	(2.1	)%
Other (net)	0.3	%	0.2	%	(0.2	)%
	35.4	%	32.0	%	33.1	%

As of June 30, 2014, we have $8,761 of net operating loss (“NOL”) carryforwards pertaining to the acquisition of Goldleaf Financial Solutions, Inc., which are expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2014, we had state NOL carryforwards of $1,705. The federal and state losses have varying expiration dates, ranging from 2014 to 2034. Based on state tax rules which restrict our utilization of these losses, we believe it is more likely than not that $700 of these losses will expire unutilized. Accordingly, a valuation allowance of $700 and $700 has been recorded against these assets as of June 30, 2014 and 2013, respectively.

The Company paid income taxes of $83,014, $54,815, and $44,962 in 2014, 2013, and 2012 respectively.

At June 30, 2013, the Company had $4,890 of unrecognized tax benefits. At June 30, 2014, the Company had $7,834 of gross unrecognized tax benefits, $5,366 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,315 and $597 related to uncertain tax positions at June 30, 2014 and 2013, respectively.

A reconciliation of the unrecognized tax benefits for the years ended June 30, 2014 and 2013 follows:

	Unrecognized Tax Benefits
Balance at July 1, 2012	$	6,202
Additions for current year tax positions	1,087
Reductions for current year tax positions	—
Additions for prior year tax positions	510
Reductions for prior year tax positions	(2,720		)
Settlements	—
Reductions related to expirations of statute of limitations	(189		)
Balance at June 30, 2013	4,890
Additions for current year tax positions	1,380
Reductions for current year tax positions	—
Additions for prior year tax positions	1,662
Reductions for prior year tax positions	(1		)
Settlements	—
Reductions related to expirations of statute of limitations	(97		)
Balance at June 30, 2014	$	7,834

The U.S. federal and state income tax returns for June 30, 2011 and all subsequent years remain subject to examination as of June 30, 2014 under statute of limitations rules. We anticipate potential changes could reduce the unrecognized tax benefits balance by $1,700 - $2,300 within twelve months of June 30, 2014.