v3.25.2
Income Taxes (Text Block)
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes [Text Block] INCOME TAXES
The provision for income taxes consists of the following:
 Year Ended June 30,
 202520242023
Current:   
Federal$109,633 $93,890 $125,622 
State24,151 23,222 30,505 
Deferred: 
Federal(5,159)(1,615)(40,218)
State1,663 706 (7,981)
 $130,288 $116,203 $107,928 
The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were:
 June 30,
 20252024
Deferred tax assets:  
Contract and service revenues$25,489 $21,985 
Expense reserves and accruals (bad debts and compensation)
17,022 16,123 
Leasing liabilities12,590 14,755 
Software development and research and development tax amortization
14,244 — 
Net operating loss and tax credit carryforwards212 2,155 
Other, net2,503 3,369 
Total gross deferred tax assets72,060 58,387 
Valuation allowance(182)(108)
Net deferred tax assets71,878 58,279 
Deferred tax liabilities:  
Property and equipment depreciation(24,232)(26,689)
Intangibles, software development, and research and development tax amortization(107,083)(113,623)
Contract and service costs(169,579)(148,126)
Leasing right-of-use assets(11,010)(13,363)
Total gross deferred liabilities(311,904)(301,801)
Net deferred tax liability$(240,026)$(243,522)
The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:
 Year Ended June 30,
202520242023
Computed "expected" tax expense21.0 %21.0 %21.0 %
Increase (reduction) in taxes resulting from:   
State income taxes, net of federal income tax benefits3.5 %3.8 %3.7 %
Research and development credit(2.2)%(2.6)%(2.3)%
Changes to prior year uncertain tax positions
(0.3)%0.6 %— %
Other (net)0.2 %0.5 %0.3 %
 22.2 %23.3 %22.7 %
As of June 30, 2025, the Company has state NOL and tax credit carryforwards with a tax-effected value of $78 and $134, respectively. The state net operating loss and tax credit carryover have varying expiration dates, ranging from fiscal 2026 to 2045. Based on state tax rules which restrict utilization of these losses and tax credits, the Company believes it is more likely than not that $182 of these losses and tax credits will expire unutilized. Accordingly, valuation allowances of $182 and $108 have been recorded against the state net operating losses and tax credit carryforwards as of June 30, 2025, and 2024, respectively.
The Company paid income taxes, net of refunds, of $117,581, $106,966, and $145,862 in fiscal 2025, 2024, and 2023, respectively.
On July 4, 2025, the President of the United States signed into law legislation referred to as “One Big Beautiful Bill Act” (H.R. 1), which enacts substantial changes to the federal income tax law. The legislation includes several business-focused provisions, such as the restoration of immediate expensing for domestic research and development expenditures and the reinstatement of 100% bonus depreciation for qualified property placed in service after January 19, 2025. The Act also permanently extends key provisions from the Tax Cuts and Jobs Act (TCJA). As the legislation was enacted after the June 30, 2025, balance sheet date, the financial implications are not included in the current fiscal year's financial statements. The Company is in the process of assessing the impacts of the new law and plans to incorporate updates in the financial results next fiscal year beginning in the quarter ending September 30, 2025.
At June 30, 2025, the Company had $21,723 of gross unrecognized tax benefits, $19,526 of which, if recognized, would affect its effective tax rate. At June 30, 2024, the Company had $19,077 of gross unrecognized tax benefits, $17,222 of which, if recognized, would affect its effective tax rate. The Company had accrued interest and penalties of $4,375 and $3,351 related to uncertain tax positions at June 30, 2025, and 2024, respectively. The gross unrecognized tax benefits and accrued interest and penalties are recorded as other long-term liabilities in the Company’s consolidated balance sheets, except for $3,449 recorded as deferred income tax liability at June 30, 2025. The income tax provision included interest expense and penalties (or benefits) on unrecognized tax benefits of $796, $1,132, and $529 in the fiscal years ended June 30, 2025, 2024, and 2023, respectively.
A reconciliation of the unrecognized tax benefits for the fiscal years ended June 30, 2025, 2024, and 2023, follows:
 Unrecognized Tax Benefits
Balance at July 1, 2022$8,990 
Additions for current year tax positions2,570 
Additions for prior year tax positions2,433 
Reductions for prior year tax positions(350)
Reductions related to expirations of statute of limitations(1,638)
Balance at June 30, 202312,005 
Additions for current year tax positions3,924 
Additions for prior year tax positions4,672 
Reductions related to expirations of statute of limitations(1,524)
Balance at June 30, 202419,077 
Additions for current year tax positions4,480 
Additions for prior year tax positions834 
Reductions for prior year tax positions(27)
Reductions related to expirations of statute of limitations(2,641)
Balance at June 30, 2025$21,723 

The U.S. federal and state income tax returns for fiscal 2022 and all subsequent years remain subject to examination as of June 30, 2025, under statute of limitations rules. In addition, certain U.S. state income tax returns remain subject to examination as of June 30, 2025, under the statute of limitation rules for fiscal 2016 through 2022. The Company anticipates that potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,000 — $9,000 within twelve months of June 30, 2025.