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INCOME TAXES
9 Months Ended
Jun. 30, 2017
INCOME TAXES [Abstract]  
INCOME TAXES

14. INCOME TAXES

Our effective income tax rate was 22.4% and 21.1% for the three and nine months ended June 30, 2017, respectively, compared to a 9.6% and 14.2% effective income tax rate for the three and nine months ended June 30, 2016.  The increase in the effective tax rate during the first nine months of fiscal 2017 was primarily due to changes in the jurisdictional mix of income, and the absence of the retroactive reinstatement of the research and experimentation tax credit in December 2015, and the benefit of $0.9 million in domestic production deductions recorded in fiscal 2016.

The Company is currently operating under a tax holiday in South Korea in conjunction with our investment in research, development and manufacturing facilities there.  This arrangement allows for a tax at 50% of the local statutory rate in effect for fiscal years 2016 and 2017, following a 0% tax rate in fiscal years 2013, 2014 and 2015.  This tax holiday reduced our income tax provision by approximately $3,094 and $2,717 in the first nine months of fiscal 2017 and 2016, respectively.  This tax holiday increased our diluted earnings per share by approximately $0.12 and $0.11 during the nine month ended June 30, 2017 and 2016, respectively.