v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax (expense) benefit is comprised of the following components:
Years Ended June 30,
202620252024
Current (expense):
Federal$(18,528)$(2,327)$(97)
State and local(22,124)(11,969)(91)
(40,652)(14,296)(188)
Deferred (expense) benefit:
Federal(1,368)(10,861)47,607 
State and local1,230 (2,973)44,590 
(138)(13,834)92,197 
Income tax (expense) benefit$(40,790)$(28,130)$92,009 
The Company’s income from operations before income taxes in Fiscal Year 2026 was fully derived from domestic operations. The income tax expense differed from the amount derived by applying the statutory federal rate to income from operations before income taxes principally due to the effect of the following items:
Year Ended June 30, 2026
TotalPercentage
Income from operations before income taxes$106,976 
Federal tax expense at statutory federal rate (22,465)21 %
State and local income taxes, net of federal tax benefit (a)
(16,706)16 %
Nontaxable or nondeductible items
Executive officers’ compensation(4,536)4 %
Other nondeductible expenses(592)— %
Tax credits
Federal Insurance Contributions Act credit1,255 (1)%
Excess tax benefit related to share-based payment awards2,147 (2)%
Other, net107 — %
Income tax expense$(40,790)38 %
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(a)     State and local taxes in New York State and New York City, respectively, made up the majority (greater than 50 percent) of the tax effect in this category.
As previously disclosed for Fiscal Years 2025 and 2024, prior to the adoption of ASU 2023-09, the income tax (expense) benefit differs from the amount derived by applying the statutory federal rate to income from operations before income taxes principally due to the effect of the following items:
Years Ended June 30,
20252024
Federal tax expense at statutory federal rate $(13,768)$(10,981)
State income taxes, net of federal tax expense(11,686)(9,039)
Change in valuation allowance— 108,506 
Return to provision(142)4,487 
Federal tax credits
1,172 1,139 
Change in the estimated applicable tax rate used to determine deferred taxes233 280 
Nondeductible executive officers’ compensation (3,590)(2,385)
Other nondeductible expenses(343)(413)
Excess tax benefit related to share-based payment awards12 412 
Other, net(18)3 
Income tax (expense) benefit$(28,130)$92,009 
The tax effects of temporary differences which gave rise to significant portions of the deferred tax assets and liabilities at June 30, 2026 and 2025 were as follows:
June 30,
20262025
Deferred tax assets:
Accrued employee benefits$18,693 $15,311 
Restricted stock units and stock options6,859 6,434 
Deferred revenue2,462 2,929 
Right-of-use lease assets and lease liabilities, net53,815 40,461 
Deferred interest12,918 23,371 
Property and equipment43,861 41,441 
Investments1,666 1,372 
Other, net7,190 9,930 
Total deferred tax assets$147,464 $141,249 
Deferred tax liabilities:
Intangibles and other assets$(38,482)$(40,395)
Prepaid expenses(7,330)(6,460)
Straight-line rent(48,167)(40,322)
Total deferred tax liabilities$(93,979)$(87,177)
Deferred tax assets, net$53,485 $54,072 
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax asset will not be realized. The Company’s ability to realize its deferred tax assets depends upon the generation of sufficient future taxable income to allow for the utilization of its NOLs and future deductible temporary differences. In determining the likelihood of future realization of the deferred tax assets as of June 30, 2026, the Company considered both positive and negative evidence and weighted the effect of such evidence based upon its objectivity. This included consideration of both cumulative pretax income, including permanent items, for current fiscal year and the two preceding years; and projected future pretax income. Based on current facts and circumstances, management believes that it is more likely than not that the Company will realize its deferred tax assets. The Company will continue to assess the realizability of its deferred tax assets on a quarterly basis.
Income tax payments for Fiscal Year 2026 are comprised of the following components:
Year Ended June 30, 2026
Federal$15,400 
State and local:
New York State9,606
New York City9,842
Other261
19,709
Total income tax payments$35,109 
As previously disclosed for Fiscal Years 2025 and 2024, prior to the adoption of ASU 2023-09, income tax payments, net of refunds, were $17,788 and $58, respectively.
On Friday, July 4, 2025, President Trump signed into law the Reconciliation Bill commonly known as the “One Big Beautiful Bill Act” (the “OBBBA”). OBBBA includes a broad range of tax reform provisions affecting businesses, including extending and modifying certain key Tax Cuts & Jobs Act provisions (both domestic and international), expanding certain Inflation Reduction Act incentives, and accelerating the phase-out of others. The Company evaluated these provisions and concluded that they did not have a material impact in the consolidated financial statements.