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Income Taxes | 9 Months Ended
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Jun. 30, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Note 14. Income Taxes The components of income (loss) before income taxes are as follows (dollars in thousands):
|  | Three Months Ended June 30, |  |  | Nine Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 4,895 |  |  | $ | (37,511 | ) |  | $ | 19,139 |  |  | $ | (42,187 | )
Foreign |  |  | 6,967 |  |  |  | 7,248 |  |  |  | 21,628 |  |  |  | 9,515 |
Income (loss) before income taxes |  | $ | 11,862 |  |  | $ | (30,263 | ) |  | $ | 40,767 |  |  | $ | (32,672 | )
The components of the provision for (benefit from) income taxes are as follows (dollars in thousands):
|  | Three Months Ended June 30, |  |  | Nine Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 2,661 |  |  | $ | (5,899 | ) |  | $ | 6,414 |  |  | $ | (6,841 | )
Foreign |  |  | 3,403 |  |  |  | 3,688 |  |  |  | (3,549 | ) |  |  | 692 |
Provision for (benefit from) income taxes |  | $ | 6,064 |  |  | $ | (2,211 | ) |  | $ | 2,865 |  |  | $ | (6,149 | )
Effective income tax rate |  |  | 51.1 | % |  |  | 7.3 | % |  |  | 7.0 | % |  |  | 18.8 | %
The effective tax rates for the periods presented are based upon estimated income for the fiscal year and the statutory tax rates enacted in the jurisdictions in which we operate. For all periods presented, the effective tax rate differs from the 21.0% statutory U.S. tax rate due to the impact of the nondeductible stock-based compensation, U.S. inclusions of global intangible low-taxed income (GILTI), and our mix of jurisdictional earnings and related differences in foreign statutory tax rates. Our effective tax rate for the three months ended June 30, 2021 was 51.1% compared to 7.3% for the three months ended June 30, 2020. Consequently, our provision for income taxes for the three months ended June 30, 2021 was $6.1 million, a net change of $8.3 million from a benefit from income taxes of $2.2 million for the three months ended June 30, 2020. This difference was attributable to our composition of jurisdiction earnings, U.S. inclusions of foreign taxable income as a result of 2017 tax law changes, non-deductible compensation expenses. Our effective tax rate for the nine months ended June 30, 2021 was 7.0% compared to 18.8% for the nine months ended June 30, 2020. Consequently, our provision for income taxes for the nine months ended June 30, 2021 was $2.9 million, a net change of $9.0 million from a benefit from income taxes of $6.1 million for the nine months ended June 30, 2020. This difference was attributable to a $15.8 million tax benefit recorded as a result of an increase to the enacted Netherlands tax rate in the first quarter of fiscal 2021 and the realization of a $3.9 million tax benefit related to stock-based compensation in the period. This compares to a $5.0 million tax benefit realized during the nine months ended June 30, 2020, which was the result of a previous change to the Netherlands enacted tax rate. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment.

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- 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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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