Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign income components

The following table presents the components of our income from continuing operations before income taxes, including inter-segment amounts:

	Fiscal Year Ended September 30,
(in thousands)	2021		2020		2019
Domestic*	$	2,320	$	(31,989)	$	(9,609)
Foreign	13,742		(38,106)		13,783
	$	16,062	$	(70,095)	$	4,174

*    Includes the majority of our corporate administrative costs. See Note 14: Segment Information for information pertaining to segment contribution.

Components of income tax provision

The following table presents the significant components of the income tax provision:

	Fiscal Year Ended September 30,
(in thousands)	2021		2020		2019
Current:
Federal	$	(479)	$	(6,631)	$	431
State and foreign	4,646		10,544		704
	4,167		3,913		1,135
Deferred:
Federal	3,202		(1,561)		(4,264)
State and foreign	81		(3,984)		5,535
	3,283		(5,545)		1,271
Total income tax (benefit) expense	$	7,450	$	(1,632)	$	2,406

Reconciliation of income taxes calculated at the statutory rate and the provision for income taxes

The following table presents a reconciliation of income taxes calculated at the statutory rate and the provision for income taxes:

	Fiscal Year Ended September 30,
(in thousands)	2021			2020			2019
Income tax expense (benefit) at the federal statutory rate	$	3,374		$	(14,720)		$	878
State taxes, net of federal benefit	931			951			184
Mexico inflation adjustment	(1,217)			(1,120)			(801)
Non-deductible items	2,087			772			2,088
Tax credits	—			—			(551)
Foreign rate differential	1,111			(1,671)			1,080
Change in valuation allowance	(137)			962			1,601
Stock compensation	293			598			(711)
Uncertain tax positions	208			2,849			(1,596)
Non-deductible impairment	—			9,093			—
Deferred tax true-up	896			—			—
Other	(96)			654			234
Total income tax expense (benefit)	$	7,450		$	(1,632)		$	2,406
Effective tax rate	46		%	2		%	58		%

Significant components of deferred tax assets and liabilities

The following table shows significant components of our deferred tax assets and liabilities:

	September 30,
(in thousands)	2021		2020
Deferred tax assets:
Cash Converters	$	13,848	$	15,049
Tax over book inventory	7,595		9,737
Accrued liabilities	7,731		8,924
Pawn service charges receivable	1,195		1,019
Stock compensation	643		1,565
Foreign tax credit	2,484		1,696
State and foreign net operating loss carryforwards	19,414		15,990
Book over tax depreciation	7,250		4,651
Other	3,562		4,350
Total deferred tax assets before valuation allowance	63,722		62,981
Valuation allowance	(19,135)		(18,524)
Total deferred tax assets, net	44,587		44,457
Deferred tax liabilities:
Tax over book amortization	23,674		22,444
Note receivable discount	13,483		12,257
Prepaid expenses	1,368		1,349
Total deferred tax liabilities	38,525		36,050
Net deferred tax asset	$	6,062	$	8,407

Schedule of unrecognized tax benefits

The following table presents a roll-forward of unrecognized tax benefits:

	Fiscal Year Ended September 30,
(in thousands)	2021		2020		2019
Beginning balance	$	3,085	$	1,435	$	3,091
Increase for tax positions taken during a prior period	2,135		1,401		—
Increase for tax positions taken during the current period	—		249		—
Decrease for tax positions as a result of the lapse of the statute of limitations	(457)		—		(1,656)
Ending balance	$	4,763	$	3,085	$	1,435