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Note 11 - Income Taxes | 6 Months Ended
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Dec. 31, 2018
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 1 1 . Income Taxes: The Company’s effective income tax rate for the second quarter of fiscal 2019 and 2018 was 19.3% and ( 124.8 )% of consolidated earnings before income taxes, and ( 11.2 )% and ( 44.8 )% for the first six months of fiscal 2019 and 2018, respectively. The change in the Company’s tax rate for the second quarter and first six months of fiscal 2019 compared to second quarter and first six months of fiscal 2018 was driven by discrete tax items. The Company recognized total net benefits related to discrete tax items of $1.1 million during the second quarter and $5.3 million during the first six months of fiscal 2019. U.S. tax reform (as described further below) resulted in $0.6 million tax benefit for the second quarter and first six months of fiscal 2019. Share-based compensation excess tax benefit contributed $0.3 million and $3.7 million in the second quarter and first six months of 2019, respectively. The Company recognized total net benefits related to discrete tax items of $31.0 million during the second quarter and $31.5 million during the first six months of fiscal 2018. U.S. tax reform (as described further below) resulted in $33.5 million tax benefit for the second quarter and first six months of fiscal 2018. This tax benefit was partially offset by a net discrete tax expense of $2.9 million and $3.8 million for the second quarter and first six months of fiscal 2018 related to the revaluation of contingent consideration, which is not tax deductible. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted, which reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one -time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. The Tax Act added many new provisions including changes the deduction for executive compensation, a tax on global intangible low taxed income (“GILTI”), the base erosion anti abuse tax (“BEAT”) and a deduction for foreign derived intangible income (“FDII”). The SEC staff issued Staff A ccounting Bulletin (“SAB 118” ) later codified as ASU 2018 - 05 Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 , which provides a measurement period of up to one year from the Tax Act’s enactment date to complete the accounting for the effects of the Tax Act. During the quarter, the Company recorded a net discrete benefit of $0.6 million related to the mandatory deemed repatriation tax calculation which is inclusive of a benefit for a dividends received deduction for certain foreign tax credits offset by an increased expense due to the Company’s refinement of the calculation as the tax return is being prepared as well as increased expense due to interpretation of guidance issued within the quarter. The additional dividends received deduction is based on our assessment of the treatment under the applicable provisions of the Tax Act as currently written and enacted. If, in the future, Congress or the Department of the Treasury provides legislative or regulatory updates, this could change our assessment of the benefit associated with the dividends received deduction, and we may be required to recognize additional tax expense up to the full amount of the $4.3 million in the period such updates are issued. Measurement period adjustments recorded during the second quarter and first six months of fiscal 2019 related to the mandatory repatriation inclusion and were approximately $ 2.1 million, all of which had an impact on the effective rate. The Company is at the end of the measurement period allowed under ASU 2018 - 05, but anticipates additional interpretations and clarifications to be issued by the U.S. Treasury Department, which may affect future period tax estimates. The Company made the accounting policy election to treat taxes due on U.S. inclusions in taxable income related to GILTI as a current period expense when incurred.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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