Note 13 - Income Taxes

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

1

3

)     Income Taxes

The Company's effective tax rate from continuing operations for the

first

quarter of

2019

was

28.9%

compared to

25.1%

for the prior year quarter.  The tax rate was impacted in the current period by the following items: (i) a benefit from the federal rate decrease to

21

percent under the Tax Cuts and Jobs Act, (ii) estimated withholding taxes on expected distributions of current year earnings in foreign jurisdictions, and (iii) executive compensation deduction limitations as well as income from foreign jurisdictions being taxed in the US under Sec.

951A.

Discontinued operations had an adverse impact on the effective tax rate of

0.9%

for the quarter ending

September 30, 2018.

This adverse impact is a result of income taxed in a lower jurisdiction (United States) being moved to discontinued operations which put upward pressure on the tax rate from continuing operations.