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Note 11 - Income Taxes | 9 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 1 1 ) Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act was passed which, among other things, reduces the federal corporate tax rate to 21.0% effective for taxable years starting on or after January 1, 2018. The Company is using a blended federal rate of 28.0% for the year ending June 30, 2018. During the quarter ended December 31, 2017, the Company reported provisional amounts for toll/transition tax and the change in the U.S. deferred tax. Pursuant to SEC guidance provided in Staff Accounting Bulletin No. 118, the Company is utilizing the measurement period approach for the income tax effects of tax reform for which the accounting is incomplete. During the current quarter ending March 31, 2018, the Company updated the impact of the tax law as follows:
| ● | The Company has discretely recorded an additional charge of approximately $178 thousand to its provision for income taxes for the quarter ending March 31, 2018 due to a revaluation of the Company's estimated deferred tax assets as of December 31, 2017. The increase was a result of a change in the estimated current year activity from the prior quarter for a total year-to date impact of approximately $1.4 million. As in the prior quarter, the impact is based on estimated amounts for the current quarter.
| ● | The Company has discretely recorded a tax benefit of approximately $633 thousand to its provision for income taxes for the quarter ending March 31, 2018 related to a mandatory deemed repatriation of foreign earnings. The benefit was the result of updating the calculation based on the federal tax return filed in the quarter that was partially offset by an estimated tax provision for state taxes on the impact of the deemed repatriation for a total year-to date impact of approximately $13.1 million. The Company is still using an estimate because the calculation involves data from a future period ( June 30, 2018) and the Company is awaiting further guidance from the tax authorities regarding the technical application of the rules. Under the Act, the Company is permitted to pay this tax over an eight -year period commencing with the due date of the 2018 tax return.
Since these provisions during the quarter are still based on estimates, the Company will continue to measure the impact of these areas and record any changes in subsequent quarters when information and guidance become available. Other law changes implemented by the Act such as the repeal of the Section 199 manufacturing deduction, changes to the calculation for Section 162 (m) executive compensation deduction, interest deduction limitation and Global Intangible Low Taxed Income (GILTI), and others will not have any impact on the Company until the fiscal year ending June 30, 2019. The Company will continue to monitor guidance regarding these changes for how it will impact the financial statements in later periods. The Company's effective tax rate from continuing operations for the third quarter of 2018 was 23.4% compared with 27.3% for the prior year quarter. The effective tax rate in 2018 was higher due to both an approximately $0.5 million discrete tax benefit related to the US tax reform and a higher benefit related to a true-up for the filed tax return recorded in the period and not in the prior year quarter. The Company's effective tax rate from continuing operations for the nine months ended March 31, 2018 was 54.4% compared with 24.1% for the prior year. The effective tax rate for the year to date was higher due to net discrete tax reform charges of $14.6 million recorded in the current year and not in the prior year.

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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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