9.	Income Taxes

The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Tax statutes and regulations within each jurisdiction are subject to interpretation and require the application of significant judgment. The Company is currently under examination by two state jurisdictions for the years 2010 through 2017. The Company does not expect resolution of these examinations to have a material impact on its results of operations, financial condition or cash flows.

The Company’s total liability for unrecognized tax benefits as of September 30, 2017 and June 30, 2017 was $1.7 million for both periods. The $1.7 million unrecognized tax benefit at September 30, 2017, if recognized, would impact the Company’s effective tax rate.

The effective tax rate was 25.0 percent and 35.9 percent during the three months ended September 30, 2017 and 2016, respectively. Excess tax benefits under ASU 2016-09 reduced the effective tax rate during the three months ended September 30, 2017 and 2016 by 11.8 percent and 1.5 percent, respectively. We do not expect any other tax rate changes due to vesting of stock compensation in FY18. The effective tax rate for both periods was also reduced by gains from the change in value of assets invested in corporate owned life insurance (COLI) policies. If gains or losses on the COLI investments throughout the rest of the current fiscal year vary from our estimates, our effective tax rate will fluctuate in future quarters for the year ending June 30, 2018. The tax rate for the three months ended September 30, 2017 was also favorably effected by the research and development tax credit