XML 18 R9.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Note 3 - Income Taxes | 12 Months Ended
--- | ---
Sep. 30, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] |
3. | INCOME TAXES
The (benefit) provision from income taxes consists of the following:
|  | 2022 |  |  | 2021 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | 2,688,000 |  |  | $ | 5,420,000 |
State |  |  | 1,208,000 |  |  |  | 2,835,000 |
|  |  | 3,896,000 |  |  |  | 8,255,000 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | (23,200,000 | ) |  |  | 24,385,000 |
State |  |  | (7,621,000 | ) |  |  | 7,510,000 |
|  |  | (30,821,000 | ) |  |  | 31,895,000 |
|  | $ | (26,925,000 | ) |  | $ | 40,150,000 |
The difference between the statutory federal income tax rate and the Company’s effective rate is summarized below:
|  | 2022 |  |  | 2021 |
Statutory federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
State franchise taxes (net of federal tax benefit) |  |  | 5.7 |  |  |  | 5.2 |
Effect of state rate change on beginning balance of deferred tax liabilities |  |  | (0.7 | ) |  |  | 0.1 |
Dividends received deduction |  |  | 0.4 |  |  |  | (0.2 | )
Others |  |  | (0.1 | ) |  |  | 0.1 |
Effective tax rate |  |  | 26.3 | % |  |  | 26.2 | %
The Company’s deferred income tax assets and liabilities were comprised of the following:
|  | 2022 |  |  | 2021 |
Deferred tax assets attributable to: |  |  |  |  |  |  |  |
Accrued liabilities, including supplemental compensation and vacation pay accrual |  | $ | 1,792,000 |  |  | $ | 1,603,000 |
Impairment losses on marketable securities |  |  | (182,000 | ) |  |  | 113,000 |
Bad debt reserves not yet deductible |  |  | 56,000 |  |  |  | 55,000 |
Depreciation and amortization |  |  | 2,686,000 |  |  |  | 3,065,000 |
Deferred revenues |  |  | 1,316,000 |  |  |  | 1,836,000 |
Goodwill |  |  | 451,000 |  |  |  | 520,000 |
Net operating losses |  |  | 657,000 |  |  |  | 561,000 |
Credits and other |  |  | 71,000 |  |  |  | 268,000 |
Total deferred tax assets |  |  | 6,847,000 |  |  |  | 8,021,000 |
Deferred tax liabilities attributable to: |  |  |  |  |  |  |  |
Unrealized gains on marketable securities |  |  | (32,120,000 | ) |  |  | (64,115,000 | )
Net deferred income taxes |  | $ | (25,273,000 | ) |  | $ | (56,094,000 | )
During fiscal 2022, the Company recorded an income tax benefit of $26,925,000 on the pretax loss of $102,549,000. The income tax benefit consisted of a tax benefit of $32,840,000 on the unrealized losses on marketable securities and a benefit of $340,000 for the dividends received deduction and other permanent book and tax differences, offset by tax provisions of $3,790,000 on the realized gains on marketable securities, $1,735,000 on income from operations, and $730,000 for the effect of a change in state apportionment on the beginning of the year’s deferred tax liability. Consequently, the overall effective tax rate for fiscal 2022 was 26.3%, after including the taxes on the realized gains and unrealized losses on marketable securities. For fiscal 2021, the Company recorded a provision for income taxes of $40,150,000 on pretax income of $153,050,000. The effective rate of 26.2% was higher than the statutory rate of 21% primarily due to the recording of (i) state taxes, which were offset by the dividends received deduction, resulting in a tax provision of $1,260,000 on pretax income before the unrealized and realized gains on marketable securities, (ii) a tax provision of $27,938,000 on the unrealized gains on marketable securities and (iii) a tax provision of $10,952,000 on the realized gains on marketable securities. The Company files consolidated federal income tax returns in the United States and with various state jurisdictions and is no longer subject to examinations for fiscal years before fiscal 2019 with regard to federal income taxes and fiscal 2018 for state income taxes. * * * * * * * * * * * * During fiscal 2021, the Company utilized all of its federal and certain state net operating losses (NOL). California has suspended the use of NOLs for fiscal years beginning in 2020, 2021 and 2022. As a result, the Company has $5.5 million of California NOLs expiring in fiscal years 2038 and 2039. The Company also has NOLs in other states, expiring as follows:
Fiscal Year ended |  | California NOLs |  |  | Other State NOLs |
September 30, 2032 |  | $ | --- |  |  | $ | .1 |
September 30, 2037 |  |  | --- |  |  |  | .1 |
September 30, 2038 |  |  | 4.8 |  |  |  | .2 |
September 30, 2039 |  |  | .7 |  |  |  | .1 |
No expiration |  |  | --- |  |  |  | 2.1 |
Total |  | $ | 5.5 |  |  | $ | 2.6 |

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

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration