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Income Taxes
9 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company's effective tax rate was approximately 32.6% and 42.6% for the nine months ended March 31, 2017 and March 25, 2016 respectively. The primary reconciling items between the federal statutory rate of 35.0% and the Company's overall effective tax rate for the nine months ended March 31, 2017 were the effect of state income taxes offset by tax benefits related to the U.S. Research and Development credit, U.S. Domestic Production Activities deduction and the effective settlement of uncertain tax positions. The primary reconciling items between the federal statutory rate of 35.0% and the Company's overall effective tax rate for the nine months ended March 25, 2016 were the effect of state income taxes offset by discrete tax benefits related to research and development tax credits and U.S. Domestic Production Activities.

As of March 31, 2017, the recorded liability for uncertain tax positions under the measurement criteria of Accounting Standards Codification ("ASC") Topic 740, Income Taxes, was $939. The effective settlement of uncertain tax positions resulted in a decrease in the recorded liability of $1,344 during the nine months ended March 31, 2017, which resulted in a net decrease to the provision for income taxes of $294. The Company does not expect the amount of unrecognized tax benefits to materially change within the next twelve months.
As a result of the acquisition of Caltrop Corporation in the nine months ended March 31, 2017, the Company recorded a deferred tax liability of $2,577, primarily related to differences in the U.S. financial reporting and historical tax basis in intangible assets. In addition, the Company recorded an uncertain tax position liability of $62 for tax filings prior to the acquisition, this uncertain tax position liability was offset by an indemnity receivable.
As a result of the early adoption of ASU 2016-09 in the first quarter of fiscal 2017, excess tax benefits and tax deficiencies will be prospectively classified to the statement of operations instead of additional paid-in capital. The Company's effective tax rate for the nine months ended March 31, 2017 was not materially impacted by the adoption of ASU 2016-09. The Company recorded a net tax benefit of $21 during the nine months ended March 31, 2017 which decreased the provision for income taxes.
In the first quarter of fiscal year 2017, the IRS concluded its income tax examination for fiscal year 2014. No adjustments were proposed.