Note 13 - Income Taxes

12 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

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. 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 remain subject to examination from 2013 forward, while state income tax returns are generally open from 2011 forward, and vary by individual state statute of limitation. 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,
	2015			2014			2013
	(in thousands)
Current tax (benefit) expense:
Federal	$	8,652		$	6,299		$	8,890
State		1,067			912			721
		9,719			7,211			9,611
Deferred tax (benefit) expense:
Federal		(3,678	)		(2,792	)		(5,083	)
State		(281	)		(397	)		(197	)
		(3,959	)		(3,189	)		(5,280	)
	$	5,760		$	4,022		$	4,331

At June 30, 2015 and 2014, the Company had an income taxes receivable balance of $231,000 and $1,658,000 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,
	2015			2014
	(in thousands)
Deferred income tax liabilities:
Tax operating leases	$	14,003		$	16,729
Deferred selling expenses		965			1,011
Depreciation		77			-
Other investments		19			134
Total liabilities		15,064			17,874
Deferred income tax assets:
Allowances and reserves		(2,741	)		(2,255	)
Other		-			(13	)
State income taxes		(374	)		(319	)
Stock-based compensation		(5	)		(3	)
Total assets		(3,120	)		(2,590	)
Net deferred income tax liabilities	$	11,944		$	15,284

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

	Years ended June 30,
	2015			2014			2013
Federal statutory rate		35.00	%		35.00	%		35.00	%
State tax, net of Federal benefit		5.31			4.65			4.41
Other, mainly tax exempt leases		(1.41	)		(2.25	)		(2.31	)
Derecognition of uncertain tax positions		-			(1.10	)		-
Effective rate		38.90	%		36.30	%		37.10	%

As of June 30, 2015, there was $188,000 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, 2015, accrued penalties and interest on unrecognized tax benefits are estimated to be $33,000.

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

	Years ended June 30,
	2015			2014
	(in thousands)
Balance, beginning of period	$	188		$	310
Increase for tax positions in current year		47			57
Increase (decrease)  for tax positions taken in prior years		(48	)		(146	)
Lapse of statute of limitations		-			(8	)
Increase (decrease) for interest and penalties		1			(25	)
Balance, end of period	$	188		$	188

At June 30, 2015, there were no material changes to the liability for uncertain tax positions and unrecognized tax benefits. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons; including additions related to current year tax provisions, the expiration of the statute of limitations on open tax years, the status of examinations and changes in management judgment.