XML 55 R35.htm IDEA: XBRL DOCUMENT
v3.21.2

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 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration