Income Taxes (Text Block)

3 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate was 31.9% of income before income taxes for the quarter ended September 30, 2016, compared to 36.1% for the same quarter in fiscal 2016. The decrease in the effective tax rate was primarily due to the adoption of ASU 2016-09 during the quarter (see Note 3), as well as the recognition of a tax benefit from the federal Research and Experimentation Credit ("R&E Credit"), which was not available during the first quarter of fiscal 2016.

The Company paid income taxes, net of refunds, of $1,446 and $11,666 in the three months endedSeptember 30, 2016 and 2015, respectively.

At September 30, 2016, the Company had $7,789 of gross unrecognized tax benefits, $6,283 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,304 and $1,233 related to uncertain tax positions at September 30, 2016 and 2015, respectively.

During the period ended June 30, 2016, the Internal Revenue Service commenced an examination of the Company’s U.S. federal income tax returns for the fiscal years ended June 30, 2014 and 2015. The examination is ongoing. At this time, it is anticipated that the examination will not result in a material change to the Company’s financial statements. 

The U.S. federal and state income tax returns for fiscal 2013 and all subsequent years remain subject to examination as of September 30, 2016 under statute of limitations rules. We anticipate potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $1,500 - $3,000 within twelve months of September 30, 2016.