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INCOME TAXES
3 Months Ended
Jan. 31, 2022
INCOME TAXES  
INCOME TAXES

12.  INCOME TAXES

Our provision for income taxes and effective tax rate are affected by the geographical composition of pre-tax income that includes jurisdictions with differing tax rates, conditional reduced tax rates, and other events that are not consistent from period to period, such as changes in income tax laws.

We recorded an income tax expense for the first three months of fiscal 2022 of $1.6 million compared to $0.5 million for the same period in 2021. Our effective tax rate for the first three months of fiscal 2022 was 32%, compared to 45% in the corresponding prior year period. The decrease in the effective tax rate was primarily due to changes in geographic mix of income and loss that includes jurisdictions with differing tax rates, various discrete tax items, and changes in income tax laws to address the unfavorable impact of the COVID-19 pandemic.

Our unrecognized tax benefits were $202,000 as of January 31, 2022, and $198,000 as of October 31, 2021, and in each case included accrued interest.

We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. As of January 31, 2022, the gross amount of interest accrued, reported in Accrued expenses, was approximately $32,000, which did not include the federal tax benefit of interest deductions.

We file U.S. federal and state income tax returns, as well as tax returns in several foreign jurisdictions. The statutes of limitations with respect to unrecognized tax benefits will expire between August 2022 and August 2025.

   

Currently, our subsidiary in Taiwan is under tax audit for fiscal year 2018.