
		Year ended		Year ended		Year ended
		September 30,		September 30,		September 30,
		2013		2012		2011
		$'000s

Current
Domestic (U.S.)	$	(9,050)	$	(8,628)	$	(14,638)
Foreign		(55,493)		(46,570)		(39,473)
Total Current		(64,543)		(55,198)		(54,111)

Deferred
Domestic (U.S.)		4,765		4,452		8,571
Foreign		10,756		8,028		9,796
Total Deferred		15,521		12,480		18,367

Total	$	(49,022)	$	(42,718)	$	(35,744)

The significant components of our net asset (liability) representing deferred income tax balances are as follows:

		September 30,		September 30,
		2013		2012
		$'000s


Employee share-based compensation	$	16,764	$	16,288
Receivables		2,443		3,011
Inventory reserve		1,527		1,339
Property, plant and equipment		(13,718)		(11,264)
Intangible assets and goodwill		(122,079)		(115,405)
Debt issuance costs		(1,628)		(2,044)
Employee benefit accruals		7,997		7,072
Deferred income		2,234		(353)
Valuation allowances		(3,249)		(876)
IC profit elimination		8,638		6,736
Other		2,603		1,521
Tax loss carryforward		10,812		8,386

Net deferred income tax asset (liability)	$	(87,656)	$	(85,589)

In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon sufficient taxable income within the carry-back years and the generation of future taxable income during the periods in which those temporary differences and tax loss carry-forwards become deductible. Management considers taxable income in the carry-back years, if carry back is permitted in the tax law, the projected future taxable income (including the realization of future taxable temporary differences), and tax planning strategies in making this assessment.

As of September 30, 2013, the Company had $35,082 of gross tax loss carry-forwards subject to expiration as follows:

The Company recognized a valuation allowance of $ 3,249 at September 30, 2013, ($ 876 at September 30, 2012) on deferred tax assets of $10,812 ($8,386 at September 30, 2012) predominantly relating to tax loss carry-forwards, as management believes that it is more likely than not that the benefits of those existing tax loss carry-forwards will not be realized within the period those tax losses are deductible.

The difference between the U.S. federal income tax rate and the Company's income tax provision included in the consolidated statements of income consisted of the following:

		Year ended		Year ended		Year ended
		September 30,		September 30,		September 30,
		2013		2012		2011
		$'000s

Income before income taxes	$	197,571	$	178,323	$	159,529

Reconciliation of provision for income taxes:
Computed tax provision		(69,782)		(66,559)		(55,801)
Foreign tax differential		26,524		25,821		23,863
Nondeductible expenses		(236)		(1,298)		(1,826)
Permanent differences relating
to German trade taxes		(1,421)		(1,220)		(1,143)
Subpart F income net of tax credit		-		-		(113)
Share-based compensation		667		(72)		(3,007)
Tax income (expense) from prior periods		157		(1,241)		44
Tax free income and tax credits		645		2,174		1,684
Additional state taxes		(1,133)		(511)		(909)
Change in tax rate		(2,236)		-		-
Change in valuation allowance		(2,259)		(91)		1,493
Other		52		279		(29)

Provision for income taxes	$	(49,022)	$	(42,718)	$	(35,744)

The change in tax rate from prior periods of $2,236 at September 30, 2013, predominantly relates to a non-cash remeasurement of deferred tax assets and liabilities resulting from an increase in the local trade tax rate at our principal German operations. The income tax provision at September 30, 2012 includes expenses of $1,733 related to a tax audit in Germany covering fiscal years 2005 until 2009.

In August 2007, a tax law was enacted that may limit the Company's deductibility of interest in Germany (“Zinsschranke”). For the fiscal years ended September 30, 2013 and 2012, the Company's deductibility of interest was not limited as a result of this German tax law.

		Year ended		Year ended		Year ended
		September 30,		September 30,		September 30,
		2013		2012		2011
		$'000s
Germany	$	125,262	$	112,963	$	102,693
United States		23,230		16,590		16,236
Other Foreign		49,079		48,770		40,600

	$	197,571	$	178,323	$	159,529

None of the goodwill recognized in the Exchange or in the business combinations completed in any of the periods presented is tax deductible.

The development of the valuation allowance on deferred tax assets over the last three fiscal years is presented below:

				Additions
		Balance		Charged/						Balance
		at		(credited) to		Charged to				at
		Beginning		Cost and		Other				End of
		of Period		Expenses		Accounts		Deductions		Period
		$'000s
Valuation allowance deferred tax asset
For the year ended September 30, 2013	$	876	$	-	$	2,373	$	-	$	3,249
For the year ended September 30, 2012		1,031		-		116		271		876
For the year ended September 30, 2011		2,208		-		-		1,177		1,031

The company makes no provision for deferred U.S. income taxes on undistributed foreign earnings and profits because as of September 30, 2013, it remained management's intention to continue to indefinitely reinvest these amounts in foreign operations. These earnings relate to ongoing operations and, as of September 30, 2013, the approximate amount of undistributed foreign earnings amounted to $409 million. Because of the availability of U.S. foreign tax credits as well as other factors, it is not practicable to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely.

As of September 30, 2013 and 2012, the Company had no unrecognized tax benefits.

With limited exception, the Company and its subsidiaries are no longer subject to U.S. federal, state and local or non-U.S. income tax audits (including Germany) by taxing authorities for tax returns filed with respect to periods prior to fiscal year 2009.

The Company classifies interest and penalties associated with income taxes as interest and other operating expense, respectively. Amounts of interest or penalties have not been material in any period.