Income Taxes (Text Block)

6 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate was 33.5% of income before income taxes for the quarter ended December 31, 2016, compared to 29.9% for the same quarter in fiscal 2016. The increase in the effective tax rate was primarily due to the recognition of a tax benefit included in the second quarter of fiscal 2016 from the retroactive extension of the federal Research and Experimentation Credit ("R&E Credit").

The Company paid income taxes, net of refunds, of $44,539 and $52,254 in the six months endedDecember 31, 2016 and 2015, respectively.

At December 31, 2016, the Company had $6,334 of gross unrecognized tax benefits, $4,781 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,284 and $1,415 related to uncertain tax positions at December 31, 2016 and 2015, respectively.

During the period ended June 30, 2016, the Internal Revenue Service commenced an examination of the Company’s U.S. federal income tax returns for the fiscal years ended June 30, 2014 and 2015. The examination was completed during the quarter ending December 31, 2016. The closing of the examination did not result in a material change to the Company’s financial statements. 

The U.S. federal and state income tax returns for fiscal 2013 and all subsequent years remain subject to examination as of December 31, 2016 under statute of limitations rules. We anticipate potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $1,000 - $2,000 within twelve months of December 31, 2016.