Note 11 - Income Taxes

3 Months Ended

Sep. 29, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

11

– Income Taxes

At the end of each interim reporting period, the Company estimates its effective income tax rate expected to be applicable for the full year. This estimate is used in providing for income taxes on a year-to-date basis and

may

change in subsequent interim periods. The Company’s effective tax rate for the

three

months ended

September 29, 2019

was

28.4%

compared to

27.1%

in the same period of the prior year. The effective rate for fiscal

2020

differed from the U.S. federal statutory rate of

21%

due to state income taxes and nondeductible expenses for executive compensation, which were partially offset by various permanent differences and tax credits, including excess tax benefits from stock-based compensation. The effective rate for the

three

months ended

September 30, 2018

differed from the U.S. federal statutory rate of

21%,

primarily due to state income taxes and nondeductible expenses for executive compensation, which were partially offset by various tax credits, including excess tax benefits from stock-based compensation, and other permanent differences.

The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and various foreign countries. The Company is currently undergoing its U.S. federal examination for fiscal

2017,

however, fiscal year

2018

remains subject to U.S. federal examination. Due to ongoing state examinations and nonconformity with the U.S. federal statute of limitations for assessment, certain states remain open from fiscal

2015.

The Company's foreign income tax filings from fiscal

2014

are open for examination by its respective foreign tax authorities, mainly Canada, Brazil, and the United Kingdom.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. At

September 29, 2019,

the Company has an unrecognized tax benefit, including interest and penalties, of approximately

$0.9

million. The Company believes that

$0.2

million of unrecognized tax positions will be resolved over the next

twelve

months.