Note 9 - Income Taxes	9 Months Ended
Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 9 : Income Tax es The Company is subject to U.S. federal income tax and various state, local, and foreign income taxes in numerous jurisdictions. The Company’s domestic and foreign tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses. Additionally, the amount of income taxes paid is subject to the Company’s interpretation of applicable tax laws in the jurisdictions in which it files. The Company provides for income taxes on an interim basis based on an estimate of the effective tax rate for the year. This estimate is reassessed on a quarterly basis. Discrete tax items are accounted for in the quarterly period in which they occur. On December 22, 2017, the Tax Cuts and Jobs Act was signed into law in the United States. This law made numerous changes to federal taxation in the U.S., including a reduction in the federal corporate tax rate to 21% and a one -time tax on historical foreign earnings that had not yet been repatriated. The effect of the tax rate change is that the Company’s federal tax rate is reduced to a blended rate of 28% from the previous rate of 34% for fiscal 2018, and then will further reduce to the enacted 21% in Fiscal 2019 and beyond. In addition, there are also a number of other changes primarily related to U.S. taxation of income earned by foreign subsidiaries and on transactions with those subsidiaries. As a result of this legislation, in the quarter ended December 31, 2017, the Company performed an initial assessment of the impact of tax reform and has taken a charge to tax expense of $7.3 million to reflect the estimated impact of the tax rate reduction on its deferred tax assets. The Company has estimated the overall federal tax impact for the one time transition tax to be zero. Further guidance from the Department of Treasury and various state taxing authorities as well as year-end financial data is required, however, before the various tax calculations can be considered complete. The Company is reviewing all aspects of the tax law change and, other than the reduced tax rate on earnings going forward, which will provide a favorable benefit, the Company does not believe the other provisions will have a significant impact to tax expense. The Company will continue to measure the impact of these provisions and will record any changes in subsequent quarters when information and guidance becomes available. The tax expense for the third quarter of fiscal 2018 was $0.7 million on profit before tax of $2.3 million for an effective tax rate of 30.0%. The effective tax rate for the third quarter of fiscal 2017 was 36.8%. For the first nine months of fiscal 2018, tax expense was $8.5 million on profit before tax of $4.1 million for an effective tax rate of 209%. Before the tax charge related to new tax legislation, tax expense was $1.3 million or 31.5% of pre-tax income. For the first nine months of fiscal 2017, the effective tax rate was 40.8%. The tax expense in the third quarter of fiscal 2018 was increased by a nominal amount of discrete items primarily related to interest charges on tax liabilities and an increase in the valuation allowance for state tax loss carryforwards which were mostly offset by the benefit from a reduced liability for uncertain tax positions net of the reduction in the receivable for a competent authority review. In prior quarters, there were net discrete charges of $7.2 million including discrete charges for the impact of the tax law change referred to above, the impact of tax deductions on stock grants which were less than the book deductions, and interest on tax liabilities; these were partly offset by discrete tax benefits for research credits in the U.K., the use of carryforward tax losses in the U.K. and the impact of provision to return adjustments. The tax expense in the third quarter of fiscal 2017 was increased by less than $0.1 million for interest expense on uncertain tax positions and for the first nine months of fiscal 2017, it was increased by $0.3 million primarily for the impact of a tax rate change in the U.K. applied to the deferred tax asset balance. U.S. Federal tax returns through fiscal 2014 are generally no longer subject to review by tax authorities; however, tax loss carryforwards from years before fiscal 2015 are still subject to adjustment. As of March 31, 2018, the Company has substantially resolved all open income tax audits and there were no other local or federal income tax audits in progress. In international jurisdictions including Australia, Brazil, Canada, China, Germany, Mexico, New Zealand, Singapore and the UK, which comprise a significant portion of the Company’s operations, the years that may be examined vary by country. The Company’s most significant foreign subsidiary in Brazil is subject to audit for the calendar years 2012 - 2017. During the next twelve months, it is possible there will be a reduction of $0.2 million in long term tax obligations due to the expiration of the statute of limitations on prior year tax returns. Accounting for income taxes requires estimates of future benefits and tax liabilities. Due to the temporary differences in the timing of recognition of items included in income for accounting and tax purposes, deferred tax assets or liabilities are recorded to reflect the impact arising from these differences on future tax payments. With respect to recorded tax assets, the Company assesses the likelihood that the asset will be realized by addressing the positive and negative evidence to determine whether realization is more likely than not to occur. If realization is in doubt because of uncertainty regarding future profitability, the Company provides a valuation allowance related to the asset to the extent that it is more likely than not that the deferred tax asset will not be realized. Should any significant changes in the tax law or the estimate of the necessary valuation allowance occur, the Company would record the impact of the change, which could have a material effect on the Company’s financial position. No valuation allowance has been recorded for the Company’s domestic deferred tax assets related to temporary differences in items included in taxable income. The Company continues to believe that due to forecasted future taxable income and certain tax planning strategies available, it is more likely than not that it will be able to utilize the tax benefit provided by those differences. In the U.S., a partial valuation allowance has been provided for foreign tax credit carryforwards due to the uncertainty of generating sufficient foreign source income to utilize those credits in the future. In certain other countries where Company operations are in a loss position, the deferred tax assets for tax loss carryforwards and other temporary differences are fully offset by a valuation allowance.

Note

: Income Tax

The Company is subject to U.S. federal income tax and various state, local, and foreign income taxes in numerous jurisdictions. The Company’s domestic and foreign tax liabilities are subject to the allocation of revenues and expenses in different jurisdictions and the timing of recognizing revenues and expenses. Additionally, the amount of income taxes paid is subject to the Company’s interpretation of applicable tax laws in the jurisdictions in which it files.

The Company provides for income taxes on an interim basis based on an estimate of the effective tax rate for the year. This estimate is reassessed on a quarterly basis. Discrete tax items are accounted for in the quarterly period in which they occur.

December 22, 2017,

the Tax Cuts and Jobs Act was signed into law in the United States. This law made numerous changes to federal taxation in the U.S., including a reduction in the federal corporate tax rate to

21%

and a

one

-time tax on historical foreign earnings that had

not

yet been repatriated. The effect of the tax rate change is that the Company’s federal tax rate is reduced to a blended rate of

28%

from the previous rate of

34%

for fiscal

2018,

and then will further reduce to the enacted

21%

in Fiscal

2019

and beyond. In addition, there are also a number of other changes primarily related to U.S. taxation of income earned by foreign subsidiaries and on transactions with those subsidiaries. As a result of this legislation, in the quarter ended

December 31, 2017,

the Company performed an initial assessment of the impact of tax reform and has taken a charge to tax expense of

$7.3

million to reflect the estimated impact of the tax rate reduction on its deferred tax assets. The Company has estimated the overall federal tax impact for the

one

time transition tax to be zero. Further guidance from the Department of Treasury and various state taxing authorities as well as year-end financial data is required, however, before the various tax calculations can be considered complete.

The Company is reviewing all aspects of the tax law change and, other than the reduced tax rate on earnings going forward, which will provide a favorable benefit, the Company does

not

believe the other provisions will have a significant impact to tax expense. The Company will continue to measure the impact of these provisions and will record any changes in subsequent quarters when information and guidance becomes available.

The tax expense for the

third

quarter of fiscal

2018

was

$0.7

million on profit before tax of

$2.3

million for an effective tax rate of

30.0%.

The effective tax rate for the

third

quarter of fiscal

2017

was

36.8%.

For the

first

nine

months of fiscal

2018,

tax expense was

$8.5

million on profit before tax of

$4.1

million for an effective tax rate of

209%.

Before the tax charge related to new tax legislation, tax expense was

$1.3

million or

31.5%

of pre-tax income. For the

first

nine

months of fiscal

2017,

the effective tax rate was

40.8%.

The tax expense in the

third

quarter of fiscal

2018

was increased by a nominal amount of discrete items primarily related to interest charges on tax liabilities and an increase in the valuation allowance for state tax loss carryforwards which were mostly offset by the benefit from a reduced liability for uncertain tax positions net of the reduction in the receivable for a competent authority review. In prior quarters, there were net discrete charges of

$7.2

million including discrete charges for the impact of the tax law change referred to above, the impact of tax deductions on stock grants which were less than the book deductions, and interest on tax liabilities; these were partly offset by discrete tax benefits for research credits in the U.K., the use of carryforward tax losses in the U.K. and the impact of provision to return adjustments. The tax expense in the

third

quarter of fiscal

2017

was increased by less than

$0.1

million for interest expense on uncertain tax positions and for the

first

nine

months of fiscal

2017,

it was increased by

$0.3

million primarily for the impact of a tax rate change in the U.K. applied to the deferred tax asset balance.

U.S. Federal tax returns through fiscal

2014

are generally

longer subject to review by tax authorities; however, tax loss carryforwards from years before fiscal

2015

are still subject to adjustment. As of

March 31, 2018,

the Company has substantially resolved all open income tax audits and there were

other local or federal income tax audits in progress. In international jurisdictions including Australia, Brazil, Canada, China, Germany, Mexico, New Zealand, Singapore and the UK, which comprise a significant portion of the Company’s operations, the years that

may

be examined vary by country. The Company’s most significant foreign subsidiary in Brazil is subject to audit for the calendar years

2012

2017.

During the next

twelve

months, it is possible there will be a reduction of

$0.2

million in long term tax obligations due to the expiration of the statute of limitations on prior year tax returns.

Accounting for income taxes requires estimates of future benefits and tax liabilities. Due to the temporary differences in the timing of recognition of items included in income for accounting and tax purposes, deferred tax assets or liabilities are recorded to reflect the impact arising from these differences on future tax payments. With respect to recorded tax assets, the Company assesses the likelihood that the asset will be realized by addressing the positive and negative evidence to determine whether realization is more likely than

not

to occur. If realization is in doubt because of uncertainty regarding future profitability, the Company provides a valuation allowance related to the asset to the extent that it is more likely than

not

that the deferred tax asset will

not

be realized. Should any significant changes in the tax law or the estimate of the necessary valuation allowance occur, the Company would record the impact of the change, which could have a material effect on the Company’s financial position.

valuation allowance has been recorded for the Company’s domestic deferred tax assets related to temporary differences in items included in taxable income. The Company continues to believe that due to forecasted future taxable income and certain tax planning strategies available, it is more likely than

not

that it will be able to utilize the tax benefit provided by those differences. In the U.S., a partial valuation allowance has been provided for foreign tax credit carryforwards due to the uncertainty of generating sufficient foreign source income to utilize those credits in the future. In certain other countries where Company operations are in a loss position, the deferred tax assets for tax loss carryforwards and other temporary differences are fully offset by a valuation allowance.