Note 13 - Income Taxes:

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Text Block]

Note 13 – Income Taxes:

The Company accounts for its income taxes under ASC 740, “Income Taxes.”  Among other provisions, this standard requires deferred tax balances to be determined using the enacted income tax rate for the years in which taxes will be paid or refunds received.  From time to time, various governmental taxing authorities audit the Company.  The Company believes that its accrual for income taxes is adequate for adjustments, if any, which may result from these examinations.

The provision for income taxes is summarized as follows:

	Years ended June 30,
	2012			2011			2010
	(in thousands)
Current tax (benefit) expense:
Federal	$	4,145		$	(159	)	$	934
State		1,399			1,270			1,435
		5,544			1,111			2,369
Deferred tax (benefit) expense:
Federal		528			5,375			5,007
State		(700	)		(458	)		(483	)
		(172	)		4,917			4,524
	$	5,372		$	6,028		$	6,893

At June 30, 2012 and 2011, the Company had an income taxes receivable balance of $880,000 and $1,378,000 respectively.

Deferred taxes result principally from the method of recording lease income on capital leases and depreciation methods for tax reporting, which differ from financial statement reporting.  Deferred income tax liabilities (assets) are comprised of the following:

	June 30,
	2012			2011
	(in thousands)
Deferred income tax liabilities:
Tax operating leases	$	24,511		$	24,563
Deferred selling expenses		1,483			1,682
Other investments		218			659
Depreciation, other		550			118
Total liabilities		26,762			27,022
Deferred income tax assets:
Allowances and reserves		(2,149	)		(2,083	)
State income taxes		(516	)		(445	)
Stock-based compensation		(37	)		(53	)
Total assets		(2,702	)		(2,581	)
Net deferred income tax liabilities	$	24,060		$	24,441

The differences between the Federal statutory income tax rate and the Company's effective tax rate are as follows:

	Years ended June 30,
	2012			2011			2010
Federal statutory rate		35.00	%		35.00	%		35.00	%
State tax, net of Federal benefit		4.77			4.83			5.36
Other, mainly tax exempt leases		(2.17	)		(4.23	)		(2.11	)
Effective rate		37.60	%		35.60	%		38.25	%

As of June 30, 2012, there was $239,000 of unrecognized tax benefits, all of which, if recognized, would affect the effective tax rate.  The Company’s policy is to include interest and penalties related to unrecognized tax benefits in income tax expense.  As of June 30, 2012, accrued penalties and interest on unrecognized tax benefits are estimated to be $52,000.

The following table sets forth the change in unrecognized tax benefits:

	Years ended June 30,
	2012			2011
	(dollars in thousands)
Balance, beginning of period	$	709		$	715
Increase for tax positions in current year		78			153
Decreases for tax positions taken in prior years		(200	)		(14	)
Lapse of statute of limitations		(250	)		(140	)
Decrease for interest and penalties		(98	)		(5	)
Balance, end of period	$	239		$	709

At June 30, 2012, there were significant changes in the liability for uncertain tax positions and unrecognized tax benefits due to the settlement of and the lapse of statute of limitations for several state tax positions and a change in the estimate of certain state tax liabilities.  The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including additions related to current year tax positions, the expiration of the statute of limitations on open tax years, status of examinations and changes in management’s judgment.  The Company is subject to U.S. Federal income tax jurisdiction as well as multiple state and local jurisdictions as a result of doing business in most states.  The Company’s Federal tax returns are subject to examination from 2009 to the present, while state income tax returns are generally open from 2008 forward, and vary by individual state statutes of limitation.