XML 79 R17.htm IDEA: XBRL DOCUMENT v3.20.1
Note 10 - Income Taxes
6 Months Ended
Apr. 30, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
Note
1
0
Income tax
es
  
On
March 27, 2020,
the United States enacted the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effects of the COVID-
19
pandemic. The CARES Act includes several provisions that provide economic relief for individuals and businesses. The Company continues to evaluate the impact the CARES Act will have on the Company’s tax obligations, but has concluded it will
not
materially impact the Company’s income taxes for the
three
and
six
months ended
April 30, 2020.
 
We use an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate, to determine its quarterly provision (benefit) for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.
 
The provision (benefit) for income taxes was
1%
and
23%
of income before income taxes for the
three
months ended
April 30, 2020 (
the “fiscal
2020
quarter”) and
2019
(the “fiscal
2019
quarter”), respectively, and (
7%
) and
22%
of income before income taxes for the
six
months ended
April 30, 2020
and
2019,
respectively. The change in the effective tax rate from the fiscal
2019
period to fiscal
2020
period was primarily driven by the disproportionate impact of various permanent book-tax differences with respect to the Company’s forecasted book income in each period.
 
We had
$118,000
and
$80,000
of unrecognized tax benefits, inclusive of interest and penalties, as of
April 30, 2020
and
October 31, 2019,
respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of
$30,000
as of
April 30, 2020.