Income Taxes	9 Months Ended
Mar. 31, 2016
Income Taxes
Income Taxes	Note 20. Income Taxes The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities. The federal, state and local income tax benefit for the three months ended March 31, 2016 was $2.7 million compared to income tax expense of $18.0 million for the three months ended March 31, 2015. During the three months ended March 31, 2016 and March 31, 2015, the effective rate was 33.4% and 33.1%, respectively. The federal, state and local income tax expense for the nine months ended March 31, 2016 and 2015 was $20.3 million and $60.2 million, respectively. The effective tax rate for the nine months ended March 31, 2016 was 32.9% compared to 34.2% for the nine months ended March 31, 2015. The effective tax rate for the nine months ended March 31, 2016 was lower compared to the nine months ended March 31, 2015 due primarily to higher benefits related to research and experimentation credits recorded as a result of a tax law extension passed in late 2015, with a retroactive January 1, 2015 effective date, the effect of changes in the Company’s state tax profile as result of the KUPI acquisition, partially offset by a lower domestic manufacturing deduction. The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. As of March 31, 2016 and June 30, 2015, the Company reported total unrecognized tax benefits of $5.8 million and $578 thousand, respectively. The increase was related to the acquisition of KUPI. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended March 31, 2016 in the statement of operations and no cumulative interest and penalties have been recorded in the Company’s statement of financial position as of March 31, 2016 and June 30, 2015. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The Company does not believe that the total unrecognized tax benefits will significantly increase or decrease in the next twelve months. The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2012 and prior generally are no longer subject to review as such years generally are closed. The Company believes that an unfavorable resolution for open tax years would not be material to the financial position of the Company.

Note 20. Income Taxes

The Company uses the liability method to account for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates which will be in effect when these differences reverse. Deferred tax expense (benefit) is the result of changes in deferred tax assets and liabilities.

The federal, state and local income tax benefit for the three months ended March 31, 2016 was $2.7 million compared to income tax expense of $18.0 million for the three months ended March 31, 2015. During the three months ended March 31, 2016 and March 31, 2015, the effective rate was 33.4% and 33.1%, respectively. The federal, state and local income tax expense for the nine months ended March 31, 2016 and 2015 was $20.3 million and $60.2 million, respectively. The effective tax rate for the nine months ended March 31, 2016 was 32.9% compared to 34.2% for the nine months ended March 31, 2015. The effective tax rate for the nine months ended March 31, 2016 was lower compared to the nine months ended March 31, 2015 due primarily to higher benefits related to research and experimentation credits recorded as a result of a tax law extension passed in late 2015, with a retroactive January 1, 2015 effective date, the effect of changes in the Company’s state tax profile as result of the KUPI acquisition, partially offset by a lower domestic manufacturing deduction.

The Company may recognize the tax benefit from an uncertain tax position claimed on a tax return only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

As of March 31, 2016 and June 30, 2015, the Company reported total unrecognized tax benefits of $5.8 million and $578 thousand, respectively. The increase was related to the acquisition of KUPI. As a result of the positions taken during the period, the Company has not recorded any interest and penalties for the period ended March 31, 2016 in the statement of operations and no cumulative interest and penalties have been recorded in the Company’s statement of financial position as of March 31, 2016 and June 30, 2015. The Company will recognize interest accrued on unrecognized tax benefits in interest expense and any related penalties in operating expenses. The Company does not believe that the total unrecognized tax benefits will significantly increase or decrease in the next twelve months.

The Company files income tax returns in the United States federal jurisdiction and various states. The Company’s tax returns for Fiscal Year 2012 and prior generally are no longer subject to review as such years generally are closed. The Company believes that an unfavorable resolution for open tax years would not be material to the financial position of the Company.