INCOME TAXES

6 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

In general, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability on the effective tax rates from quarter to quarter. The Company’s effective tax rate may change from period-to-period based on recurring and non-recurring factors including the geographical mix of earnings, enacted tax legislation, state and local income taxes and tax audit settlements.

The effective income tax rate from continuing operations was an expense of 18.6% and 72.3% for the three months ended December 31, 2021 and 2020, respectively. The effective income tax rate from continuing operations was an expense of 18.6% and 154.3% for the six months ended December 31, 2021 and 2020, respectively. The effective income tax rate from continuing operations for the six months ended December 31, 2021 was impacted by the reversal of uncertain tax position accruals based on filing and approval of certain elections by taxing authorities, deductions related to stock based compensation, non-deductible transaction costs related to the acquisition of THWR (see Note 4, Acquisitions and Dispositions), and the reversal of a valuation allowance due to the utilization of a capital loss carryover. The effective income tax rate from continuing operations for the six months ended December 31, 2020 was negatively impacted by various discrete items including the tax impact of the United Kingdom Fruit business reserve, the legal entity reorganization, and the UK rate change. The effective income tax rates in each period were also impacted by the geographical mix of earnings and state valuation allowance.

The income tax expense (benefit) from discontinued operations was nil for the three and six months ended December 31, 2021, while the income tax from discontinued operations was a benefit of $11 and a benefit of $11,320 for the three and six months ended December 31, 2020, respectively. The benefit for income tax for the six months ended December 31, 2020 was impacted by a legal entity reorganization.