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Note 5 - Income Taxes
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6 Months Ended |
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Dec. 31, 2012
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| Income Tax Disclosure [Text Block] |
5.
Income Taxes
During
the three months ended December 31, 2012 and 2011, our
effective tax rates were 37.1% and 36.2%,
respectively. During the six months ended December
31, 2012 and 2011, our effective tax rates were 38.3% and
38.9%, respectively. Income tax expense varies
from the amount computed by applying the statutory federal
tax rate to income before income taxes primarily due to state
income taxes, net of federal income tax effect, adjusted for
permanent differences, the most significant of which is the
effect of the per diem pay structure for
drivers. Drivers may elect to receive non-taxable
per diem pay in lieu of a portion of their taxable
wages. This per diem program increases our
drivers’ net pay per mile, after taxes, while
decreasing gross pay, before taxes. As a result,
salaries, wages and employee benefits are slightly lower, and
our effective income tax rate is higher than the statutory
rate. Generally, as pre-tax income increases, the
impact of the driver per diem program on our effective tax
rate decreases because aggregate per diem pay becomes smaller
in relation to pre-tax income. Due to the
partially nondeductible effect of per diem pay, our tax rate
will fluctuate in future periods based on fluctuations in
earnings and in the number of drivers who elect to receive
this pay structure.
We
account for any uncertainty in income taxes by determining
whether it is more likely than not that a tax position taken
or expected to be taken in a tax return will be sustained
upon examination by the appropriate taxing authority based on
the technical merits of the position. In that regard,
we have analyzed filing positions in our federal and
applicable state tax returns as well as in all open tax
years. The only periods subject to examination for our
federal returns are the 2009 through 2012 tax years. We
believe that our income tax filing positions and deductions
will be sustained on audit and do not anticipate any
adjustments that will result in a material change to our
consolidated financial position, results of operations and
cash flows. As of December 31, 2012, we
recorded a $0.4 million liability for unrecognized tax
benefits, a portion of which represents penalties and
interest.
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