Income Taxes (Text Block)

6 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate of 35.2% of income before income taxes for the quarter ended December 31, 2011 is higher than 31.4% for the same quarter in fiscal 2011 primarily due to the effect of the Research and Experimentation Credit (“R&E Credit”) which was retroactively extended from January 1, 2010 to December 31, 2011 during the quarter ended December 31, 2010. The rate of income taxes for the six month period of 35.3% of income before income taxes compared to 33.8% as reported in fiscal 2011 also fluctuated due to the effect of the R&E Credit retroactive extension.

At December 31, 2011, the Company had $8,717 of gross unrecognized tax benefits, $6,989 of which, if recognized would affect our effective tax rate. Our policy is to include interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2011, we had accrued interest and penalties of $1,217 related to uncertain tax positions.

During the fiscal year ended June 30, 2010, the Internal Revenue Service commenced an examination of the Company’s U.S. federal income tax returns for fiscal years ended June 2008 through 2009. Audit field work for these periods was completed during the current quarter. Additionally, the internal Revenue Service commenced an examination of the Company's U.S. federal income tax returns for the fiscal year ended June 30, 2010 during the current quarter. 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 June 30, 2008 and all subsequent years remain subject to examination as of December 31, 2011 under statute of limitations rules. We anticipate potential changes resulting from the expiration of statutes of limitations could reduce the unrecognized tax benefits balance by $2,500 - $3,500 within twelve months of December 31, 2011