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Income Taxes
12 Months Ended
Jun. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
11. INCOME TAXES

The provision (benefit) for income taxes on continuing operations are as follows:

 

     Year ended June 30,  
     2015      2014      2013  

Current

   $ (497    $ 935       $ (4,302

Deferred

     1,517         (283      2,781   
  

 

 

    

 

 

    

 

 

 

Total income tax expense (benefit)

   $ 1,020       $ 652       $ (1,521
  

 

 

    

 

 

    

 

 

 

Net deferred income tax assets recorded in the consolidated balance sheets are as follows:

 

     June 30,  
     2015      2014  

Net operating loss carryforward

   $ 4,096       $ 4,288   

Depreciation expense

     (556      (2,099

Allowances for receivables

     1,365         2,341   

Accrued expenses

     1,365         1,549   

Intangible assets

     2,627         3,223   

Pension liabilities

     238         218   

Other

     281         467   
  

 

 

    

 

 

 
     9,416         9,987   

Less valuation allowance

     (2,564      (2,577
  

 

 

    

 

 

 

Net deferred income tax assets

   $ 6,852       $ 7,410   
  

 

 

    

 

 

 

The differences between income taxes on continuing operations at the Federal statutory rate and the effective tax rate were as follows:

 

     Year ended June 30,  
     2015      2014      2013  

Income tax at Federal statutory rate

   $ 576       $ 108       $ (1,152

Changes in valuation allowance—continuing operations

     216         427         106   

U.S. state income taxes, net of federal benefit

     129         8         (558

Share option expense

     12         16         29   

Other

     87         93         54   
  

 

 

    

 

 

    

 

 

 

Total income tax expense (benefit)—continuing operations

   $ 1,020       $ 652       $ (1,521
  

 

 

    

 

 

    

 

 

 

 

The Company provided a $2,564 deferred tax valuation allowance as of June 30, 2015 so that the net deferred income tax assets were $6,852 as of June 30, 2015. Based upon management’s assessment, the Company determined that it was more likely than not that a portion of its deferred tax asset would not be recovered. The increase in the valuation allowance during the fiscal year ended June 30, 2014 resulted from reserving for certain state net operating loss carryforwards. It is more likely than not that these net operating loss carryforwards will not be realized in future years. The Company provided a $2,577 deferred tax valuation allowance as of June 30, 2014 so that the net deferred tax assets were $7,410 as June 30, 2014. The net operating loss carryforwards expire in 2023. The Company’s tax returns for periods prior to the fiscal year ended June 30, 2012 are no longer subject to potential federal and state income tax examination.