The exhibit index is located on pages 58-59. & Mine Safety Disclosures 13 & & & & & & PART II & & & & & & ITEM 5. Exhibits, Financial Statement Schedules 57 ITEM 16. These products encompass a breadth of uses. The headcount change included a decrease of 114 domestically and 4 internationally.& 3 & & None of the Company's operations are subject to collective bargaining agreements. The cost of producing the Company's products is also sensitive to the price of energy. As a result, our business is subject to risks associated with international operations. Gross margins increased $5.3 million or 8% from $69.6 million to $74.9 million. The income tax rate for fiscal 2018 was 174.7% on pre-tax income of $4.9 million. Proper management of these risks helps reduce the likelihood of earnings volatility. & When that is the case, revenue is deferred until each performance obligation is met. No performance obligation related amounts were deferred as of June 30, 2020. Purchase orders are of durations less than one year. Bytewise is tested in October and the software reporting unit is tested in February.& The Company believes this approach yields the most appropriate evidence of fair value.& See also Note 12 "Employee Benefit Plans" to the Consolidated Financial Statements). & We conducted our audits in accordance with the standards of the PCAOB. Minimum lease payments include only the fixed lease component of the agreement. & As a result, the balance sheet presentation was adjusted beginning in fiscal 2019. The Company also has defined contribution plans.& The U.K. Plan was closed to new entrants in fiscal 2009. & In February 2018, the FASB issued ASU No. Vested restricted stock units will be settled in A shares of common stock. The related expense is included in selling, general and administrative expenses. No additional options will be granted under the previous 2012 plan. As of June 30, 2020, the Company's financing leases are de minimis. The COVID-19 pandemic has had a negative impact on global sales. The Term Loan had a balance of $3.5 million at December 31, 2019. The unpaid amount of the restructuring charge at June 30, 2020 is $1.1 million. Emerson joined the Company in 2004 as the General Manager of Starrett China. These portions of the 2020 Proxy Statement are hereby incorporated by reference. & ( 333-184934) filed on November 14, 2012, is hereby incorporated by reference. & c)& & & & Modification of Interest Rate Margin. g)& & & & & Mandatory Principal Repayments.
