Income Taxes

3 Months Ended

Dec. 31, 2020

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


	Three months ended December 31,
	2020			2019
Income (loss) before income taxes	$	(259)		$	3,333

Income tax provision	105			558

Net income (loss)	$	(364)		$	2,775

Effective tax rate	(41)		%	17		%

Our income tax provision reflects an effective tax rate on pre-tax income (loss) of negative 41% for the first quarter of Fiscal 2021 compared to 17% in the first quarter of Fiscal 2020. For the three months ended December 31, 2020, the income tax provision was negatively impacted by losses recognized in various foreign jurisdictions that were reserved with a valuation allowance as well as discrete items in the amount of $0.1 million primarily related to the vesting of restricted stock units. The income tax provision was partially offset by the estimated Research and Development Tax Credit and the projected utilization of net operating loss carryforwards in Canada that were fully reserved with a valuation allowance for the three months ended December 31, 2020 and 2019. There were no material discrete items recognized in the first quarter of Fiscal 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details