INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2018

INCOME TAXES [Abstract]

Income Before Income Taxes

Income before income taxes was as follows:

	Year Ended September 30,
		2018	2017			2016
Domestic	$	46,254		$	33,272		$	7,130
Foreign		115,457			76,100			63,308
Total	$	161,711		$	109,372		$	70,438

Taxes on Income

Taxes on income consisted of the following:

	Year Ended September 30,
	2018		2017			2016
U.S. federal and state:
Current	$	14,698	$	8,606		$	609
Deferred		10,347		1,550			(1,465	)
Total	$	25,045	$	10,156		$	(856	)
Foreign:
Current	$	26,135	$	13,422		$	11,737
Deferred		488		(1,158	)		(292	)
Total		26,623		12,264			11,445
Total U.S. and foreign	$	51,668	$	22,420		$	10,589

Income Tax Rate Reconciliation

The provision for income taxes at our effective tax rate differed from the statutory rate as follows:

	Year Ended September 30,
	2018		2017		2016
Federal statutory rate		24.5%		35.0%		35.0%
U.S. benefits from research and experimentation activities		(0.8)		(1.0)		(3.5)
State taxes, net of federal effect		0.1		0.4		(0.1)
Foreign income at other than U.S. rates		1.2		(14.7)		(16.9)
Executive compensation		0.4		0.3		0.0
Share-based compensation		(4.3)		0.1		0.7
U.S. tax reform		11.2		0.0		0.0
Domestic production deduction		(0.2)		0.0		(1.3)
Other, net		(0.1)		0.4		1.1
Provision for income taxes		32.0%		20.5%		15.0%

Reconciliation of Gross Unrecognized Tax Benefits

The following table presents the changes in the balance of gross unrecognized tax benefits during the last three fiscal years:

Balance September 30, 2015	$	1,773
Additions for tax positions relating to the current fiscal year		364
Additions for tax positions relating to prior fiscal years		200
Settlements with taxing authorities		(248	)
Balance September 30, 2016		2,089
Additions for tax positions relating to the current fiscal year		381
Additions for tax positions relating to prior fiscal years		44
Lapse of statute of limitations		(244	)
Balance September 30, 2017		2,270
Additions for tax positions relating to the current fiscal year		263
Additions for tax positions relating to prior fiscal years		116
Lapse of statute of limitations		(1,215	)
Balance September 30, 2018	$	1,434

Significant Components of Deferred Tax Assets and Liabilities

Significant components of net deferred tax assets and liabilities were as follows:

	September 30,
	2018			2017
Deferred tax assets:
Employee benefits	$	3,995		$	5,307
Inventory		2,526			2,863
Bad debt reserve		361			585
Share-based compensation expense		5,379			6,611
Credit and other carryforwards		6,419			22,663
Other		1,336			1,488
Valuation allowance		(133	)		(2,271	)
Total deferred tax assets	$	19,883		$	37,246
Deferred tax liabilities:
Depreciation and amortization	$	8,007		$	14,671
Withholding on transition taxes		5,209			-
Translation adjustment		-			300
Other		908			739
Total deferred tax liabilities	$	14,124		$	15,710