Income Taxes (Text Block)

9 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate was 32.1% of income before income taxes for the quarter ended March 31, 2016, compared to 33.8% for the same quarter in fiscal 2015. The decrease in effective tax rate was primarily due to the recognition of additional federal Research and Experimentation Credit ("R&E Credit") tax benefits in the current period compared to the prior year quarter.

The Company paid income taxes of $65,064 and $60,164 in the nine months endedMarch 31, 2016 and 2015, respectively.

At March 31, 2016, the Company had $7,644 of gross unrecognized tax benefits, $6,147 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,249 and $1,388 related to uncertain tax positions at March 31, 2016 and 2015, respectively.

During the period ended March 31, 2016, the Internal Revenue Service commenced an examination of the Company’s U.S. federal income tax returns for fiscal year ended June 30, 2014. The examination is expected to be completed in December 2016. At this time, it is anticipated that the examination will not result in a material change to the Company’s consolidated financial statements. 

The U.S. federal and state income tax returns for fiscal 2012 and all subsequent years remain subject to examination as of March 31, 2016 under statute of limitations rules. We anticipate potential changes due to expiring statutes could reduce the unrecognized tax benefits balance by $1,500 - $3,000 within twelve months of March 31, 2016.