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INCOME TAXES
6 Months Ended
Mar. 31, 2016
Income Taxes [Abstract]  
Income Taxes

NOTE 8. INCOME TAXES



During the three and six  months ended March 31, 2016, the Company recorded a tax benefit of $0.1 million and $0.2 million, respectively, primarily related to the change in the deferred tax asset in Sweden as a result of generating losses, estimated state taxes, and accruing interest on uncertain tax positions.  During the three months ended March 31, 2015, the Company recorded a tax expense of $32,000, primarily related to the change in the deferred tax asset in Sweden as a result of generating losses, estimated state taxes, and accrued interest on uncertain tax positions.  During the six months ended March 31, 2015, the Company recorded a tax benefit of $2.5 million, primarily related to the change in the deferred tax liability in Sweden as a result of impairing non-goodwill intangibles and amortization, estimated state taxes, and accrued interest on uncertain tax positions.     

 

The Company’s deferred tax assets include net operating loss carry forwards and tax credits that expire at different times through and until 2035. Significant judgment is required in determining the Company’s provision for income taxes, the carrying value of deferred tax assets and liabilities and the valuation allowance recorded against net deferred tax assets. Factors such as future reversals of deferred tax assets and liabilities, projected future taxable income, changes in enacted tax rates and the period over which the Company’s deferred tax assets will be recoverable are considered in making these determinations. With the exception of the deferred tax asset in Sweden, management does not believe the deferred tax assets are more likely than not to be realized and a full valuation allowance has been provided against the deferred tax assets in the U.S., U.K., Australia, Germany, and Singapore at March 31, 2016 and September 30, 2015.  

At September 30, 2015, the Company had a cumulative tax liability of $0.3 million related to uncertain tax positions for Federal, state, and foreign tax exposure that could result in cash payments.  There were no significant changes to the Company’s uncertain tax positions during the three and six months ended March 31, 2016.  The Company does not expect its tax liability to change significantly during the next twelve months.