Note 7 - Income Taxes

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note

7

- Income Taxes

       For the

three

months ended

December 31, 2019,

the Company recorded a provision for income taxes of

$5,280,000

on pretax income of

$19,490,000.

   This was the net result of applying the

19%

effective tax rate anticipated for fiscal

2020

to the pretax loss, before the unrealized gains on investments, for the

three

months ended

December 31, 2019.

The effective tax rate was less than the statutory rate primarily due to the dividends received deduction and state tax benefits.  In addition, the Company recorded taxes on its unrealized gains on investments of

$19,531,000

during the

three

months ended

December 31, 2019. 

The effective tax rate for the

three

months ended

December 31, 2019

was

27%,

after including the taxes on the unrealized gains on investments.

 For the

three

months ended

December 31, 2018,

the Company recorded an income tax benefit of

$8,317,000

on a pretax loss of

$29,850,000.

   This was the net result of applying the effective tax rate anticipated for fiscal

2019

to the pretax loss for the

three

months ended

December 31, 2018.

The effective tax rate was greater than the statutory rate primarily due to state tax benefits. 

      The Company’s effective tax rate was

27%

for the

three

months ended

December 31, 2019

as compared with

28%

in the prior year period. 

      The Company files consolidated federal income tax returns in the United States and with various state jurisdictions and is

no

longer subject to examinations for fiscal years before fiscal

2016

with regard to federal income taxes and fiscal

2015

for state income taxes.