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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Schedule of Domestic and Foreign Income Components | The following table presents the components of our income before income taxes, including inter-segment amounts:
| Fiscal Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2020
Domestic* | $ | 49,937 |  |  | $ | 2,320 |  |  | $ | (31,989) |
Foreign | 17,776 |  |  | 13,742 |  |  | (38,106) |
| $ | 67,713 |  |  | $ | 16,062 |  |  | $ | (70,095) |
* Includes the majority of our corporate administrative costs. See Note 14: Segment Information for information pertaining to segment contribution.
Schedule of Components of Income Tax Provision | The following table presents the significant components of the income tax provision:
| Fiscal Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 9,465 |  |  | $ | (479) |  |  | $ | (6,631) |
State and foreign | 3,143 |  |  | 4,646 |  |  | 10,544 |
| 12,608 |  |  | 4,167 |  |  | 3,913 |
Deferred: |  |  |  |  |
Federal | 983 |  |  | 3,202 |  |  | (1,561) |
State and foreign | 3,962 |  |  | 81 |  |  | (3,984) |
| 4,945 |  |  | 3,283 |  |  | (5,545) |
Total income tax (benefit) expense | $ | 17,553 |  |  | $ | 7,450 |  |  | $ | (1,632) |
Schedule of 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) | 2022 |  | 2021 |  | 2020
Income tax expense (benefit) at the federal statutory rate | $ | 14,223 |  |  | $ | 3,374 |  |  | $ | (14,720) |
State taxes, net of federal benefit | 1,728 |  |  | 931 |  |  | 951 |
Mexico inflation adjustment | (2,089) |  |  | (1,217) |  |  | (1,120) |
Non-deductible items | 1,705 |  |  | 2,087 |  |  | 772 |
Foreign rate differential | 1,306 |  |  | 1,111 |  |  | (1,671) |
Change in valuation allowance | 660 |  |  | (137) |  |  | 962 |
Stock compensation | (161) |  |  | 293 |  |  | 598 |
Uncertain tax positions | (2,025) |  |  | 208 |  |  | 2,849 |
Non-deductible impairment | — |  |  | — |  |  | 9,093 |
Deferred tax true-up | 3,811 |  |  | 896 |  |  | — |
Other | (1,605) |  |  | (96) |  |  | 654 |
Total income tax expense (benefit) | $ | 17,553 |  |  | $ | 7,450 |  |  | $ | (1,632) |
Effective tax rate | 26 | % |  | 46 | % |  | 2 | %
Schedule of 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) | 2022 |  | 2021
Deferred tax assets: |  |  |
Cash Converters | $ | 14,299 |  |  | $ | 13,848 |
Tax over book inventory | 7,942 |  |  | 7,595 |
Accrued liabilities | 8,384 |  |  | 7,731 |
Pawn service charges receivable | 2,507 |  |  | 1,195 |
Stock compensation | 887 |  |  | 643 |
Foreign tax credit | 1,696 |  |  | 2,484 |
State and foreign net operating loss carryforwards | 16,220 |  |  | 19,414 |
Book over tax depreciation | 5,574 |  |  | 7,250 |
Other | 3,943 |  |  | 3,562 |
Total deferred tax assets before valuation allowance | 61,452 |  |  | 63,722 |
Valuation allowance | (17,966) |  |  | (19,135) |
Total deferred tax assets, net | 43,486 |  |  | 44,587 |
Deferred tax liabilities: |  |  |
Tax over book amortization | 29,663 |  |  | 23,674 |
Note receivable discount | — |  |  | 13,483 |
Prepaid expenses | 2,051 |  |  | 1,368 |
Total deferred tax liabilities | 31,714 |  |  | 38,525 |
Net deferred tax asset | $ | 11,772 |  |  | $ | 6,062 |
Schedule of Unrecognized Tax Benefits | The following table presents a roll-forward of unrecognized tax benefits:
| Fiscal Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2020
Beginning balance | $ | 4,763 |  |  | $ | 3,085 |  |  | $ | 1,435 |
Increase for tax positions taken during a prior period | 547 |  |  | 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 | (1,742) |  |  | (457) |  |  | — |
Ending balance | $ | 3,568 |  |  | $ | 4,763 |  |  | $ | 3,085 |

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