Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Income Taxes

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Note 8 - Income Taxes
9 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
(
8
)
Income Taxes
 
We review our expected annual effective income tax rates and makes changes on a quarterly basis as necessary based on certain factors such as changes in forecasted annual operating income; changes to actual or forecasted permanent book to tax differences; impacts from future tax audits with state, federal or foreign tax authorities; impacts from tax law changes; or change in judgment as to the realizability of deferred tax assets. We identify items which are non-recurring in nature and treats these as discrete events. The tax effect of such items is recorded in the quarter in which the related events occur. Due to the volatility of these factors, our consolidated effective income tax rate can change significantly quarter over quarter.
 
We conduct business globally and, as a result, we file income tax returns in the United States and in various state and foreign jurisdictions. In the normal course of business, we are subject to periodic examination in such domestic and foreign jurisdictions by tax authorities. We are currently under audit in the United States for fiscal
2016
through fiscal
2018.
While the amount of uncertain tax impacts with respect to the entities and years under audit
may
change within the next
twelve
months, it is
not
anticipated that any of the changes will be significant. It is reasonably possible that some of these audits
may
be completed during the next
twelve
months and that various issues relating to uncertain tax impacts will be resolved within the next
twelve
months as exams are completed or as statutes expire and will impact the effective tax rate.
 
Our consolidated effective tax rate was
58.8%
and
23.4%
respectively, for the
three
and
nine
months ended
March 31, 2020
compared with
24.8%
and
25.0%
in the prior year periods. Our effective tax rate varies from the
21%
federal statutory rate due to state taxes and other nonrecurring events that
may
not
be predictable.