Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

Schedule of Income before Income Tax, Domestic and Foreign

For financial reporting purposes, income (loss) before income taxes includes the following components:


	Year Ended September 30,
	2021		2020		2019
Domestic	$	19,927	$	81,276	$	(9,140)
Foreign	41,815		40,490		10,256
Income before income taxes	$	61,742	$	121,766	$	1,116

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax (expense) benefit were as follows:


	Year Ended September 30,
	2021		2020		2019
Current:
Federal	$	—	$	—	$	—
State	(1,233)		(591)		(400)
Foreign	(11,210)		(8,014)		(7,239)
	$	(12,443)	$	(8,605)	$	(7,639)
Deferred:
Federal	(2,153)		115		(3,597)
State	(630)		401		196
Foreign	5,146		718		1,453
	$	2,363	$	1,234	$	(1,948)
Total income tax (expense) benefit	$	(10,080)	$	(7,371)	$	(9,587)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax (expense) benefit and the amount computed by applying the applicable statutory rate to income from operations before income taxes was as follows:


	Year Ended September 30,
	2021		2020		2019
Income tax (expense) benefit at the federal statutory rate of 21%	$	(12,966)	$	(25,571)	$	(234)
State and local income taxes, net of federal tax benefit	(757)		(74)		(204)
Foreign tax rate differential	(3,009)		(1,129)		(1,471)

Nondeductible interest expense	(588)		(1,032)		(1,073)
Meals and entertainment expense	(176)		(760)		(953)
U.S. tax on foreign earnings	(5,687)		(8,438)		(1,421)
Nondeductible legal expenses	—		—		(112)
Other nondeductible expenses	(786)		(479)		(223)
Impact of tax rate changes	819		286		(548)
Valuation allowances	854		19,013		(3,886)
Share-based compensation	11,598		4,931		475
Non-taxable gain on sale of subsidiary	—		4,789		—
Return-to-provision adjustments	(44)		516		(655)
Non-controlling interest	30		(466)		221
Net benefit of foreign R&D expenses	—		18		191
Transaction related contingent liabilities	155		143		(58)

Contingent liabilities - warranty	—		—		93


Foreign withholding taxes	—		—		369
Non-deductible exchange gain or loss	—		—		(587)
Deferred tax adjustments	87		491		2,016
Accrued tax adjustments	27		(6)		(1,348)
Tax benefits of other comprehensive income	—		—		(154)
Other	363		397		(25)
Total	$	(10,080)	$	(7,371)	$	(9,587)

Schedule of Deferred Tax Assets and Liabilities

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


	September 30, 2021		September 30, 2020
Deferred Tax Assets
Receivable allowances	$	885	$	856
Reserves and accruals	24,913		24,141
Inventory valuation and other assets	3,141		4,617
Investment in partnership	1,977		1,592
Unrealized foreign exchange gains (losses), including related hedges	4,468		5,332
Other deferred taxes	2,811		3,474

Net operating loss carryforwards	48,605		29,407
Gross deferred tax assets	$	86,800	$	69,419
Less: Valuation allowance	(21,299)		(23,298)
Deferred tax assets less valuation allowance	$	65,501	$	46,121
Deferred Tax Liabilities
Goodwill	(9,849)		(6,579)
Fixed assets	(46,057)		(32,136)
Intangibles	(15,313)		(15,509)
Other deferred tax liabilities	(2,440)		(1,427)
Gross deferred tax liabilities	$	(73,659)	$	(55,651)
Net deferred tax liabilities	$	(8,158)	$	(9,530)

Summary of Valuation Allowance

A reconciliation of the valuation allowance on deferred tax assets is as follows:


	Year Ended September 30,
	2021		2020		2019
Valuation allowance beginning of period	$	23,298	$	41,084	$	36,683
Change in assessment	(6,140)		1,650		(865)
Current year operations	7,300		(19,856)		3,495
Foreign currency and other	(3,219)		3,012		2,254
Acquisitions / Dispositions	60		(2,592)		(483)
Valuation allowance end of period	$	21,299	$	23,298	$	41,084

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a reconciliation of the Company’s total gross unrecognized tax benefits:


	Year Ended September 30,
	2021		2020		2019
Balance as of beginning of period	$	1,050	$	1,075	$	—
Tax positions related to the current year
Additions	—		—		—
Tax positions related to prior years
Additions	73		—		1,075
Reductions	—		(25)		—
Expiration of statutes of limitations	—		—		—
Balance as of end of period	$	1,123	$	1,050	$	1,075

Summary of Operating Loss Carryforwards

Tax attributes available to reduce future taxable income begin to expire as follows:


	September 30, 2021		First year of Expiration
Federal net operating loss	$	190,386	September 30, 2035
State net operating loss	106,687		September 30, 2019


Foreign net operating loss	2,558		September 30, 2023
Foreign net operating loss	8,107		Indefinite