Income Taxes

6 Months Ended

Mar. 31, 2022

Income Taxes

Income Taxes

Note 5.  Income Taxes

Income tax (benefit) expense for the three and six months ended March 31, 2021 and 2022 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 (benefit) in these periods.  The effective tax rate for the three months ended March 31, 2022 was 24.7% on $11,267 of income before income taxes compared to 17.3% on loss before income taxes of $(4,392) for the three months ended March 31, 2021.  The effective tax rate for the six months ended March 31, 2022 was 25.2% on $17,573 of income before income taxes compared to 20.1% on loss before income taxes of $(14,584) for the six months ended March 31, 2021.  Income tax expense in the first six months of fiscal 2021 was unfavorably impacted by the lower stock price at the time of vesting of restricted stock as compared to the price when the stock was granted, which resulted in the Company not being able to fully utilize the deferred tax assets attributable to those shares.  The unfavorable tax expense resulted in a lower effective tax in a period in which the Company incurred a loss before income taxes.