Note 7 - Income Taxes
|9 Months Ended|
Mar. 31, 2019
|Notes to Financial Statements|
|Income Tax Disclosure [Text Block]||
The Company reviews its 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 pre-tax 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 changes in judgment as to the realizability of deferred tax assets. The Company identifies 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, the Company's consolidated effective income tax rate can change significantly quarter over quarter.
The Company conducts business globally and, as a result, the Company and its subsidiaries file income tax returns in the U.S. and in various state and foreign jurisdictions. In the normal course of business, the Company is subject to periodic examination in such domestic and foreign jurisdictions by tax authorities. The Company and certain subsidiaries are currently under audit in the U.S. for fiscal
2016.While the amount of uncertain tax impacts with respect to the entities and years under audit
maychange within the next
twelvemonths, it is
notanticipated that any of the changes will be significant. It is reasonably possible that some of these audits
maybe completed during the next
twelvemonths and that various issues relating to uncertain tax positions will be resolved within the next
twelvemonths as exams are completed or as statutes expire and will impact the effective tax rate.
The Company is subject to a U.S. federal statutory tax rate of
21%for the fiscal year ending
June 30, 2019and thereafter, and a blended federal tax rate of
2018,due to changes made to the U.S. Internal Revenue Code. The Company’s consolidated effective tax rate was
March 31, 2019and
March 31, 2018,respectively. The current period’s effective tax rate primarily includes a provision for income tax on the taxable year’s income, including federal, state and local taxes, tax expense on the establishment and maintenance of a valuation allowance on Canadian deferred tax assets, and tax and interest expense on uncertain tax positions, partially offset by the reversal of various uncertain tax positions. The prior period’s effective tax rate primarily includes a provision for income tax on the taxable year’s net income, remeasurement of deferred tax assets and liabilities as a result of the Tax Cuts and Jobs Act of
2017(the “Tax Act”), which was enacted in
December 2017,and tax and interest expense on uncertain tax positions, partially offset by the reversal of various uncertain tax positions.
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://fasb.org/us-gaap/role/ref/legacyRef