Note 9 - Income Taxes
|3 Months Ended|
Sep. 30, 2020
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
We recorded income tax expense of $1.9 million and $4.6 million in the three months ended September 30, 2020 and 2019, respectively. Our consolidated effective tax rate was 16.8% for the three months ended September 30, 2020 compared with 24.4% in the prior year period. Our effective tax rate varies from the 21% federal statutory rate due to state taxes and other nonrecurring events that may not be predictable. The decrease in the effective tax rate during the first quarter of fiscal 2021 compared with the first quarter a year ago was due to a $0.9 million reduction in our valuation allowance on deferred tax assets.
As of September 30, 2020, we had $2.0 million of unrecognized tax benefits, of which $1.9 million would reduce our income tax expense and the effective tax rate, if recognized. As of September 30, 2020, we had $0.4 million of unrecognized tax benefits that are expected to decrease in the next 12 months.
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.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef