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Note 4 - Income Taxes
 6 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

4.

Income Taxes

 

The effective tax rate for the three month and six month periods ended March 31, 2022 reflected in the table below are higher than the corresponding periods in fiscal 2021 and the combined federal and state statutory rate of 25.74%.  The increase in the effective tax rate corresponds to the recognition of a deferred tax asset associated with the impairment of the Company's investment in the LLC.

 

Excluding the effect of the impairment, the effective tax rate for the three and six month periods ended March 31, 2022 would have been 24.0% and 23.7%, respectively, reflecting the impact of additional tax deductions from the amortization of R&D tax credits deferred as a regulatory liability and the exercise of stock options.  The recognition of the impairment resulted in a net loss position for both periods thereby generating a higher effective tax rate as compared to the effective tax rate on the income positions from the corresponding periods in fiscal 2021.

 

  

Three Months Ended March 31,

  

Six Months Ended March 31,

 
  

2022

  

2021

  

2022

  

2021

 

Effective tax rate

  26.1%  25.2%  26.6%  24.8%

Effective tax rate - LLC impairment

  25.7%  -   25.7%  - 

Effective tax rate excluding LLC impairment

  24.0%  25.2%  23.7%  24.8%