NOTE

– 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 on a periodic basis 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.

The Act was signed into law on

December 22, 2017

and makes numerous changes to the Internal Revenue Code. Among other changes, the Act reduces the U.S. statutory income tax rate to

21%

effective

January 1, 2018.

Because the Act became effective mid-way through the Company’s tax year, the Company will have a U.S. statutory income tax rate of

27.6%

before discrete items for fiscal

2018,

and will have a

21%

U.S. statutory income tax rate before discrete items for fiscal years thereafter. During the quarter ended

December 31, 2017,

the Company re-valued the deferred tax balances because of the change in U.S. tax rate resulting in a

one

-time deferred tax expense of

$4,676,578.

The Company revised its full year projected effective tax rate to incorporate the fiscal

2018

statutory rate of

27.6%.

The Company completed its accounting for the income tax effects of the Act during the quarter ended

December 31, 2017.

	Three Months Ended						Nine Months Ended
	March 31						March 31
	2018			2017			2018			2017
Reconciliation to effective tax rate:

Provision for income taxes at the anticipated annual tax rate		28.9	%		32.0	%		28.9	%		30.4	%
Enactment of tax law changes		--			--			(22.8	)		--
Uncertain tax positions		5.4			4.2			0.7			(2.4	)
Difference between deferred and current tax rate related to the impairment of goodwill		--			--			12.3			--
Other		--			(2.2	)		--			(1.7	)
Tax impact related to share based compensation		1.6			9.3			(0.5	)		(3.6	)
Effective tax rate		35.9	%		43.3	%		18.6	%		22.7	%