Note 9 - Income Taxes

3 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9

.

Income Taxes

Income taxes are accounted for in accordance with the provisions of ASC

740.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bas

is. Deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in fiscal year

2018

at the blended federal rate of approximately 

24.3%;

those expected to reverse in future years, are remeasured at the new federal statutory rate of

21.0%.

Additionally, in calculating our annual effective tax rate,

the Company has used assumptions and estimates that

may

change as a result of future guidance, interpretation, and rule-making from the Internal Revenue Service, the SEC, and the FASB and/or various other taxing jurisdictions. For example, the Company anticipates that state jurisdictions will continue to determine and announce their conformity to the Tax Reform Act, which could have an impact on its annual effective tax rate.

The remeasurement of

the Company’s deferred tax balance resulted in a non-cash tax benefit of approximately

$4.3

million for the

three

months ended

December 31, 2017.