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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2019
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,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Domestic* | $ | (9,609 | ) |  | $ | 28,645 |  |  | $ | 29,598 |
Foreign | 13,783 |  |  | 26,894 |  |  | 13,080 |
| $ | 4,174 |  |  | $ | 55,539 |  |  | $ | 42,678 |
* Includes the majority of our corporate administrative costs. See Note 15 for information pertaining to segment contribution.
Components of income tax provision | The following table presents the significant components of the income tax provision from continuing operations:
| Fiscal Year Ended September 30,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 431 |  |  | $ | (26 | ) |  | $ | 1,043 |
State and foreign | 704 |  |  | 9,288 |  |  | 6,233 |
| 1,135 |  |  | 9,262 |  |  | 7,276 |
Deferred: |  |  |  |  |
Federal* | (4,264 | ) |  | 9,498 |  |  | 4,082 |
State and foreign | 5,535 |  |  | (371 | ) |  | (265 | )
| 1,271 |  |  | 9,127 |  |  | 3,817 |
Total income tax expense | $ | 2,406 |  |  | $ | 18,389 |  |  | $ | 11,093 |
* The year ended September 30, 2018 includes a $2.1 million charge resulting from the remeasurement of our domestic net deferred tax assets based on the new corporate income tax rate as a result of the Act, as well as $2.6 million charge resulting from recording a valuation allowance against foreign tax credit carryforwards that do not meet the “more likely than not” threshold to be utilized as a result of tax law changes included in the Act.
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 attributable to continuing operations:
| Fiscal Year Ended September 30,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Income tax expense at the federal statutory rate | $ | 878 |  |  | $ | 13,623 |  |  | $ | 14,937 |
State taxes, net of federal benefit | 184 |  |  | 1,265 |  |  | (242 | )
Mexico inflation adjustment | (801 | ) |  | (936 | ) |  | (1,286 | )
Non-deductible items | 2,088 |  |  | 2,214 |  |  | 1,114 |
Tax credits | (551 | ) |  | (615 | ) |  | (536 | )
Foreign rate differential | 1,080 |  |  | 1,405 |  |  | (151 | )
Change in valuation allowance | 1,601 |  |  | 3,986 |  |  | (2,030 | )
Stock compensation | (711 | ) |  | — |  |  | (386 | )
Uncertain tax positions | (1,596 | ) |  | (4,808 | ) |  | 202 |
Change in tax rate resulting from enactment of the Act | — |  |  | 2,558 |  |  | — |
Other | 234 |  |  | (303 | ) |  | (529 | )
Total income tax expense | $ | 2,406 |  |  | $ | 18,389 |  |  | $ | 11,093 |
Effective tax rate | 58 | % |  | 33 | % |  | 26 | %
Significant components of deferred tax assets and liabilities | The following table shows significant components of our deferred tax assets and liabilities:
| September 30,
| 2019 |  | 2018
| (in thousands)
Deferred tax assets: |  |  |
Cash Converters International | $ | 14,616 |  |  | $ | 9,782 |
Tax over book inventory | 6,858 |  |  | 11,963 |
Accrued liabilities | 4,518 |  |  | 4,664 |
Pawn service charges receivable | 1,699 |  |  | 2,171 |
Stock compensation | 2,758 |  |  | 3,328 |
Foreign tax credit | 2,638 |  |  | 2,638 |
Capital loss carryforward | — |  |  | 3,006 |
State and foreign net operating loss carryforwards | 15,806 |  |  | 15,223 |
Book over tax depreciation | 2,659 |  |  | 972 |
Other | 2,159 |  |  | 134 |
Total deferred tax assets before valuation allowance | 53,711 |  |  | 53,881 |
Valuation allowance | (18,094 | ) |  | (20,254 | )
Net deferred tax assets | 35,617 |  |  | 33,627 |
Deferred tax liabilities: |  |  |
Tax over book amortization | 19,042 |  |  | 15,700 |
Note receivable discount | 15,416 |  |  | 17,396 |
Prepaid expenses | 1,146 |  |  | 1,362 |
Total deferred tax liabilities | 35,604 |  |  | 34,458 |
Net deferred tax asset (liability) | $ | 13 |  |  | $ | (831 | )
Schedule of unrecognized tax benefits | The following table presents a rollforward of unrecognized tax benefits:
| Fiscal Year Ended September 30,
| 2019 |  | 2018 |  | 2017
| (in thousands)
Beginning balance | $ | 3,091 |  |  | $ | 6,530 |  |  | $ | 6,058 |
Increase for tax positions taken during a prior period | — |  |  | 963 |  |  | — |
Increase for tax positions taken during the current period | — |  |  | — |  |  | 472 |
Decrease for tax positions as a result of the lapse of the statute of limitations | (1,656 | ) |  | (4,402 | ) |  | — |
Ending balance | $ | 1,435 |  |  | $ | 3,091 |  |  | $ | 6,530 |

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