XML 56 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Income Taxes
6 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes

Note 11. Income Taxes

The components of income (loss) before income taxes are as follows (dollars in thousands):

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Domestic

 

$

2,060

 

 

$

(4,280

)

 

$

(5,068

)

 

$

(6,349

)

Foreign

 

 

3,717

 

 

 

4,714

 

 

 

2,085

 

 

 

9,576

 

Income (loss) before income taxes

 

$

5,777

 

 

$

434

 

 

$

(2,983

)

 

$

3,227

 

 

The components of (benefit from) provision for income taxes are as follows (dollars in thousands):

 

 

 

Three Months Ended March 31,

 

 

Six Months Ended March 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Domestic

 

$

2,427

 

 

$

(1,323

)

 

$

(791

)

 

$

(1,814

)

Foreign

 

 

(9,145

)

 

 

1,303

 

 

 

(2,925

)

 

 

2,332

 

(Benefit from) provision for income taxes

 

$

(6,718

)

 

$

(20

)

 

$

(3,716

)

 

$

518

 

Effective income tax rate

 

 

(116.3

)%

 

 

(4.6

)%

 

 

124.6

%

 

 

16.1

%

 

The effective tax rates were estimated based upon estimated income for the year, and the composition of the income in different countries. Our aggregate income tax rate in foreign jurisdictions is lower than our income tax rate in the United States. Our effective tax rate may be adversely affected by earnings being lower than anticipated in countries where we have lower statutory tax rates and higher than anticipated in countries where we have higher statutory tax rates.

Our effective income tax rate was (116.3)% for the three months ended March 31, 2020, compared to (4.6)% for the three months ended March 31, 2019. The effective rate for the three months ended March 31, 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to our composition of jurisdiction earnings and U.S. inclusions of foreign taxable income as a result of 2017 tax laws changes. The effective tax rate for the three months ended March 31, 2019 differed from the U.S. federal statutory rate of 21.0% primarily due to our earnings in foreign jurisdictions.

Our effective income tax rate was 124.6% for the six months ended March 31, 2020, compared to 16.1% for the six months ended March 31, 2019. The effective tax rate for the six months ended March 31, 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to our composition of jurisdictional earnings, U.S. inclusions of foreign taxable income as a result of 2017 tax laws changes, and an income tax benefit of approximately $5.0 million related to an increase in tax rates in the Netherlands enacted in the first quarter. The effective tax rate for the six months ended March 31, 2019 differed from the U.S. federal statutory rate of 21.0% primarily due to our earnings in foreign jurisdictions.