Income Taxes	9 Months Ended
Jun. 30, 2020
Income Taxes
Income Taxes	Note 5. Income Taxes Income tax expense for the three and six months ended June 30, 2019 and 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. The effective tax rate for the three months ended June 30, 2020 was 20.3% on $(10,158) of loss before income taxes compared to 28.1% on income before income taxes of $5,288 for the three months ended June 30, 2019. Income tax expense in the three months ended June 30, 2020 was unfavorably impacted by a valuation allowance in the amount of $980 on deferred tax assets related to tax credits that are not expected to be realized before expiration. The effective tax rate for the nine months ended June 30, 2020 was 211.9% on $(244) of loss before income taxes compared to 34.1% on income before income taxes of $5,623 for the nine months ended June 30, 2019. Income tax expense in the first nine months of fiscal 2019 was unfavorably impacted by the forfeiture of unexercised stock options, which resulted in approximately $300 of additional tax expense. On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (NOLs), expensing of qualified improvement property (OIP) and business interest in IRC Sections 172(a) and 163(j), respectively. The effects of the new legislation are recognized upon enactment, which (for U.S. federal legislation) is the date the President signs a bill into law. There was not significant impact to income tax expense for the three and nine months ended June 30, 2020 relating to the CARES Act.

Income Taxes

9 Months Ended

Jun. 30, 2020

Note 5. Income Taxes

Income tax expense for the three and six months ended June 30, 2019 and 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to state income taxes, differing tax rates on foreign earnings and discrete tax items that impacted income tax expense in these periods. The effective tax rate for the three months ended June 30, 2020 was 20.3% on $(10,158) of loss before income taxes compared to 28.1% on income before income taxes of $5,288 for the three months ended June 30, 2019. Income tax expense in the three months ended June 30, 2020 was unfavorably impacted by a valuation allowance in the amount of $980 on deferred tax assets related to tax credits that are not expected to be realized before expiration. The effective tax rate for the nine months ended June 30, 2020 was 211.9% on $(244) of loss before income taxes compared to 34.1% on income before income taxes of $5,623 for the nine months ended June 30, 2019. Income tax expense in the first nine months of fiscal 2019 was unfavorably impacted by the forfeiture of unexercised stock options, which resulted in approximately $300 of additional tax expense.

On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act contains significant business tax provisions, including modifications to the rules limiting the deductibility of net operating losses (NOLs), expensing of qualified improvement property (OIP) and business interest in IRC Sections 172(a) and 163(j), respectively. The effects of the new legislation are recognized upon enactment, which (for U.S. federal legislation) is the date the President signs a bill into law. There was not significant impact to income tax expense for the three and nine months ended June 30, 2020 relating to the CARES Act.