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3/25/22, 9:42 AM
<br />Table of Contents
<br />road -20210930
<br />The U.S. statutory federal income tax rate applicable to the Company was 21% during the fiscal years ended September 30, 2021, 2020
<br />and 2019. The following table reconciles income taxes based on the U.S. federal statutory tax rate to the Company's income before
<br />provision for income taxes for the fiscal years ended September 30, 2021, 2020 and 2019 (in thousands):
<br />Provision for income tax at federal statutory rate
<br />State income taxes
<br />Permanent differences
<br />Other
<br />For the Fiscal Year Ended
<br />September 30,
<br />2021 2020 2019
<br />5,990 $ 11,142 $ 11,976
<br />1,351 1,272 1,521
<br />961 330 319
<br />47 16 93
<br />Provision for income taxes $ 8,349 $ 12,760 $ 13,909
<br />Uncertain Tax Positions
<br />ASC Topic 740, Income Taxes ("ASC 740"), prescribes a recognition threshold and measurement model for the financial statement
<br />recognition and measurement of a tax position taken, or expected to be taken, in a tax return and provides guidance on derecognition
<br />classification, interest and penalties, accounting in interim periods, disclosure and transition.
<br />The Company is subject to tax audits in various jurisdictions in the United States. Tax audits, by their nature, are often complex. In the
<br />normal course of business, the Company is subject to challenges from the Internal Revenue Service C RS') and other tax authorities
<br />regarding amounts of taxes due. These challenges may alter the timing or amount of taxable income or deductions, or the allocation of
<br />income among tax jurisdictions. As part of the calculation of the provision for income taxes on earnings, management determines
<br />whether the benefits of the Company's tax positions are at least more likely than not to be sustained upon audit based on the technical
<br />merits of the tax position. For tax positions that are more likely than not to be sustained upon audit, management accrues the largest
<br />amount of the benefit that is more likely than not to be sustained. Such accruals require management to make estimates and judgments
<br />with respect to the ultimate outcome of a tax audit. Actual results could vary materially from these estimates. The Company performed
<br />an analysis of its tax positions and determined that no uncertain tax positions existed at September 30, 2021 or 2020. Accordingly,
<br />there was no liability for uncertain tax positions at September 30, 2021 or 2020. Based on the provisions of ASC 740, the Company
<br />had no material unrecognized tax benefits at September 30, 2021 or 2020. Due to the utilization of net operating loss carryforwards, the
<br />Company's federal income tax returns for fiscal years ended September 30, 2015 through September 30, 2021 are subject to
<br />examination. Various state income tax returns for fiscal years ended September 30, 2012 through September 30, 2021 are also subject
<br />to examination.
<br />Note 16 - Employee Benefit Plans
<br />The Company offers a 401(k) retirement plan covering substantially all employees who are at least 18 years old and have more than
<br />one year of service. The Company makes discretionary employer contributions, subject to IRS safe harbor rules. Employer
<br />contributions charged to earnings during the fiscal years ended September 30, 2021, 2020 and 2019 were $3.9 million, $3.4 million,
<br />and $2.9 million, respectively.
<br />Note 17 - Related Parties
<br />On December 31, 2017, the Company sold an indirect wholly owned subsidiary to an immediate family member of an executive officer
<br />of the Company ("Purchaser of Subsidiary") in consideration for an interest-bearing note receivable in the amount of $1.0 million,
<br />which approximated the net book value of the disposed entity. At September 30, 2021, $0.1 million and $0.4 million was reflected on
<br />the Company's Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining
<br />balances on this note receivable. In connection with this transaction, the Company also received an interest-bearing note receivable
<br />from the disposed entity ("Disposed Entity") on December 31, 2017 in the amount of $1.0 million representing certain accounts
<br />payable of the disposed entity that were paid by the Company. At September 30, 2021, $0.1 million and $0.2 million was reflected on
<br />the Company's Consolidated Balance Sheets within other current assets and other assets, respectively, representing the remaining
<br />balances on this note receivable. Remaining principal and interest payments are scheduled to be made in periodic installments during
<br />fiscal year 2022 through fiscal year 2026.
<br />httpsJ/www.sec.govIArchivesledgarldata/00017182271000171822721000107/road-2021 O930.htm 117/144
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