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Note 10 - Income Taxes
9 Months Ended
Jul. 31, 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. We continue to evaluate the impact the CARES Act will have on our tax obligations, but have concluded it did
not
materially impact our income taxes for the
three
and
nine
months ended
July 31, 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 or benefit for income taxes was
63%
and
21%
of (loss) income before income taxes for the
three
months ended
July 31, 2020 (
the “fiscal
2020
quarter”) and
2019
(the “fiscal
2019
quarter”), respectively, and
38%
and
22%
of (loss) income before income taxes for the
nine
months ended
July 31, 2020 (
the “fiscal
2020
period”) and
2019
(the “fiscal
2019
period”), 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 our forecasted book income or loss in each period.
 
We had
$101,000
and
$80,000
of unrecognized tax benefits, inclusive of interest and penalties, as of
July 31, 2020
and
October 31, 2019,
respectively. The unrecognized tax benefits, if recognized, would result in a net tax benefit of
$26,000
as of
July 31, 2020.