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Note 14 - Income Taxes | 9 Months Ended
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Mar. 31, 2019
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 14 – INCOME TAXES The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions. The Company has announced that it has entered into a definitive agreement to sell its New Windsor, New York facility. The closing of the sale is expected in the fourth quarter and is expected to generate a gain. This gain will be offset by a capital loss carryforward resulting in a tax benefit. This event was part of the calculation of the estimated annual income tax rate. In the second quarter of fiscal 2019, a deferred tax asset of $4.8 million was created as a result of the impairment of goodwill in the Lighting reporting unit. In the first quarter of fiscal 2018, a deferred tax asset of $10.7 million was created as a result of the impairment of goodwill in the Lighting reporting unit. The Tax Cuts and Jobs Act (the “Act”) was signed into law in December 2017 and makes numerous changes to the Internal Revenue Code. Among other changes, the Act reduces the U.S. corporate income tax rate to 21% effective January 1, 2018. Because the Act became effective mid-way through the Company’s fiscal 2018 tax year, the Company had a U.S. statutory income tax rate of 34% in the first quarter of fiscal 2018, before the new tax law was enacted, and will have a 21% U.S statutory income tax rate for fiscal years 2019 and after.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | March 31 |  |  | March 31 |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Reconciliation to effective tax rate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Provision for income taxes at the anticipated annual tax rate |  |  | (0.7 | )% |  |  | 28.9 | % |  |  | 13.6 | % |  |  | 28.9 | %
Enactment of tax law changes |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (22.8 | )
Uncertain tax positions |  |  | (0.1 | ) |  |  | 5.4 |  |  |  | 0.6 |  |  |  | 0.7 |
Difference between deferred and current tax rate related to the impairment of goodwill |  |  | -- |  |  |  | -- |  |  |  | 6.7 |  |  |  | 12.3 |
Other |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |
Tax impact related to share based compensation |  |  | (3.6 | ) |  |  | 1.6 |  |  |  | (0.9 | ) |  |  | (0.5 | )
Effective tax rate |  |  | (4.4 | )% |  |  | 35.9 | % |  |  | 20.0 | % |  |  | 18.6 | %

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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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