Note 12 - Income Taxes |
9 Months Ended |
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Mar. 31, 2020 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
Note 12. Income Taxes:
The Company’s effective income tax rate for the third quarter of fiscal 2020 and 2019 was 22.2% and 10.5% of consolidated earnings before income taxes, and 20.7% and 10.8% for the first nine months of fiscal 2020 and 2019, respectively. The change in the company’s tax rate for the quarter and nine months ended March 31, 2020 compared to the quarter and nine months ended March 31, 2019 were driven by changes in the composition and amount of the Company’s taxable income in fiscal 2020 resulting from the gain on our CCXI investment and discrete tax items.
The Company recognized total net benefits related to discrete tax items of $1.4 million and $8.1 million during the quarter and nine months ended March 31, 2020, respectively, compared to $6.2 million and $11.4 million during the quarter and nine months ended March 31, 2019, respectively. Share-based compensation excess tax benefit contributed $1.5 million and $8.5 million in the quarter and nine months ended March 31, 2020, respectively, compared to $1.1 million and $4.8 million in the quarter and nine months, ended March 31, 2019, respectively. The Company recognized total other immaterial net discrete tax expense of $0.1 million and $0.4 million in the quarter and nine months ended March 31, 2020, respectively, compared to other net discrete tax benefits of $5.1 million and $6.7 million in the quarter and nine months ended March 31, 2019, respectively.
The Company continues to monitor changes in interpretations, assumptions guidance, and additional regulations regarding the Tax Cuts and Jobs Act (the “Tax Act”), which was enacted on December 22, 2017. The Company recognizes potential changes to these items could have a material impact on our effective tax rate in future periods.
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