Income Taxes (Text Block)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

INCOME TAXES

The provision for income taxes consists of the following:

	Year Ended June 30,
	2022		2021		2020
Current:
Federal	$	59,390	$	55,598	$	46,137
State	18,089		13,897		13,690
Deferred:
Federal	24,391		14,401		21,130
State	7,481		2,360		3,451
	$	109,351	$	86,256	$	84,408

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

	June 30,
	2022		2021
Deferred tax assets:
Contract and service revenues	$	15,340	$	13,428
Expense reserves and accruals (bad debts, compensation, and payroll tax)	15,382		17,566
Leasing liabilities	12,868		15,182
Net operating loss and tax credit carryforwards	2,107		3,242
Other, net	3,311		2,634
Total gross deferred tax assets	49,008		52,052
Valuation allowance	(200)		(270)
Net deferred tax assets	48,808		51,782
Deferred tax liabilities:
Accelerated tax depreciation	(33,390)		(37,066)
Accelerated tax amortization	(192,187)		(175,804)
Contract and service costs	(104,139)		(85,696)
Leasing right-of-use assets	(11,722)		(13,974)
Total gross deferred liabilities	(341,438)		(312,540)
Net deferred tax liability	$	(292,630)	$	(260,758)

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

	Year Ended June 30,
	2022		2021		2020
Computed "expected" tax expense	21.0	%	21.0	%	21.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	4.3	%	3.2	%	3.6	%
Research and development credit	(2.0)	%	(2.4)	%	(2.4)	%
Other (net)	(0.1)	%	(0.1)	%	(0.1)	%
	23.2	%	21.7	%	22.1	%

As of June 30, 2022, the Company has $918 of gross federal net operating loss (“NOL”) pertaining to the acquisition of Goldleaf Financial Solutions, Inc. which is expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2022, the Company has state NOL and tax credit carryforwards with a tax-effected value of $215 and $1,700, respectively. The federal and state loss and credit carryover have varying expiration dates, ranging from fiscal 2023 to 2042. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $200 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $200 and $270 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2022 and 2021, respectively.

The Company paid income taxes, net of refunds, of $60,553, $80,220, and $63,692 in fiscal 2022, 2021, and 2020, respectively.

At June 30, 2022, the Company had $8,990 of gross unrecognized tax benefits, $8,066 of which, if recognized, would affect its effective tax rate. At June 30, 2021, the Company had $8,762 of unrecognized tax benefits, $8,119 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $1,234 and $1,180 related to uncertain tax positions at June 30, 2022 and 2021, respectively. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $73, $(310), and $38 in the fiscal years ended June 30, 2022, 2021, and 2020, respectively.

A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2022, 2021, and 2020 follows:

	Unrecognized Tax Benefits
Balance at July 1, 2019	$	10,495
Additions for current year tax positions	1,451
Additions for prior year tax positions	867
Additions related to business combinations	192
Reductions related to expirations of statute of limitations	(2,893)
Balance at June 30, 2020	10,112
Additions for current year tax positions	1,598
Additions for prior year tax positions	490
Reductions for prior year tax positions	(30)
Reductions related to expirations of statute of limitations	(3,408)
Balance at June 30, 2021	8,762
Additions for current year tax positions	1,863
Additions for prior year tax positions	1,642
Reductions for prior year tax positions	(36)
Reductions related to expirations of statute of limitations	(3,241)
Balance at June 30, 2022	$	8,990

The U.S. federal income tax returns for fiscal 2019 and all subsequent years remain subject to examination as of June 30, 2022 under statute of limitations rules. The U.S. state income tax returns that remain subject to examination as of June 30,2022 under the statute of limitation rules varies by state jurisdiction from fiscal 2016 through 2019 and all subsequent years. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $1,500 - $4,000 within twelve months of June 30, 2022.