Note 15 - Income Taxes

3 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

15

– INCOME TAXES

The Company's effective income tax rate is based on expected income, statutory rates and tax planning opportunities available in the various jurisdictions in which it operates. For interim financial reporting, the Company estimates the annual income tax rate based on projected taxable income for the full year and records a quarterly income tax provision or benefit in accordance with the anticipated annual rate. The Company refines the estimates of the year's taxable income as new information becomes available, including actual year-to-date financial results. This continual estimation process often results in a change to the expected effective income tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected income tax rate. Significant judgment is required in determining the effective tax rate and in evaluating tax positions.

In the

first

quarter of fiscal

2018,

a deferred tax asset of

$10.7

million was created as a result of the impairment of goodwill in the Lighting reporting unit. (See footnote

7

)

	Three Months Ended
	September 30
	201 7			201 6
Reconciliation to effective tax rate:
Provision for income taxes at the anticipated annual tax rate		33.7	%		32.0	%
Uncertain tax positions		(0.2	)		(1.3	)
Difference betwe en deferred and current tax rate related to the impairment of goodwill		4.8			--
Deferred tax asset adjustment		--			(6.7	)
Other		(0.3	)		(0.8	)
Effective tax rate		38.0	%		23.2	%