INCOME TAXES

The calculation of the effective tax rate is as follows (in thousands):



	Three months ended June 30,						Nine months ended June 30,
	2019			2018			2019			2018
Income (loss) before income taxes	$	5,886		$	689		$	4,315		$	(11,134	)

Income tax expense (benefit)	797			388			963			(2,443		)

Net income (loss)	$	5,089		$	301		$	3,352		$	(8,691	)

Effective tax rate	14		%	56		%	22		%	22		%

On December 22, 2017, the new tax law lowered the corporate tax rate from 35% to 21% effective January 1, 2018. As a result, the U.S. federal statutory rate for Fiscal 2019 is 21%, compared to the blended statutory rate of 24.5% effective for Fiscal 2018. The effective tax rate of 14% for the third quarter of Fiscal 2019 was positively impacted by the relative amounts of income recognized in various foreign jurisdictions that were reserved with a valuation allowance. Conversely, losses recognized in foreign jurisdictions reserved with a valuation allowance negatively impacted the effective tax rate of 56% in the third quarter of Fiscal 2018.

For the nine months ended June 30, 2019, the effective tax rate of 22% approximated the U.S. federal statutory rate as the immaterial losses incurred by foreign operations that were reserved with a valuation allowance had a minimal impact on the effective tax rate. The effective tax rate of 22% for the nine months ended June 30, 2018 was negatively impacted by foreign tax losses reserved with a valuation allowance, as well as $0.7 million of tax expense related to the re-measurement of U.S. deferred tax assets as a result of tax reform.