Income Taxes |
3 Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||
| Income Taxes | Income Taxes
Income tax provisions for the Company's interim periods are based on the effective income tax rate expected to be applicable for the full year. The Company's consolidated income taxes for the three months ended December 31, 2019 were a benefit of $5,397, compared to an expense of $605 for the first three months of fiscal 2019. The differences between the Company’s consolidated income taxes for the first three months of fiscal 2020 versus the same period for fiscal 2019 primarily resulted from the fiscal 2020 consolidated loss before income taxes and higher fiscal 2020 discrete benefits resulting from the closure of several tax audits during the current quarter. The Company’s fiscal 2020 three month effective tax rate varied from the U.S. statutory tax rate of 21.0% primarily due to state taxes, foreign statutory rate differentials, tax credits, and discrete tax benefits recognized in the quarter.
The Company had unrecognized tax benefits (excluding penalties and interest) of $12,579 and $15,526 on December 31, 2019 and September 30, 2019, respectively, of which $9,365 and $11,417 would impact the annual effective rate. It is reasonably possible that the amount of unrecognized tax benefits could decrease by approximately $3,340 in the next 12 months primarily due to the completion of audits and the expiration of the statute of limitations.
The Company classifies interest and penalties on tax uncertainties as a component of the provision for income taxes. Total penalties and interest accrued were $2,730 and $2,880 at December 31, 2019 and September 30, 2019, respectively. These accruals may potentially be applicable in the event of an unfavorable outcome of uncertain tax positions.
Note 13. Income Taxes (continued)
The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitations expires for those tax jurisdictions. As of December 31, 2019, the tax years that remain subject to examination by major jurisdiction generally are:
|
||||||||||||||||||