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INCOME TAXES
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
8. INCOME TAXES

Significant components of income before income taxes and income tax expense for the fiscal years ended September 30, 2025, September 30, 2024 and September 30, 2023 consisted of the following:

(in thousands)September 30, 2025September 30, 2024September 30, 2023
Components of income before income taxes:
United States$(42,814)$545,826 $817,853 
Non-U.S24,224 41,411 32,437 
(Loss) Income before income taxes$(18,590)$587,237 $850,290 
Income tax expense:
Current:
United States:
Federal$26,763 $82,125 $110,714 
State9,115 16,012 25,556 
Non-U.S:8,745 12,859 11,261 
Current income tax expense$44,623 $110,996 $147,531 
Deferred:
United States:
Federal$(40,278)$4,100 $12,670 
State(6,240)351 1,274 
Non-U.S:(1,520)(1,082)(1,085)
Deferred income (benefit) tax expense(48,038)3,369 12,860 
Income tax expense$(3,415)$114,365 $160,391 
Differences between the statutory federal income tax rate and effective income tax rate are summarized below:
(in thousands)September 30, 2025September 30, 2024September 30, 2023
Statutory federal tax21 %21 %21 %
Adjustments to reconcile to the effective income tax rate:
State income taxes1 %2 %3 %
Stock-based compensation(5)%(2)%(1)%
Foreign rate differential(8)%— %— %
Disallowed loss on sale of business(23)%— %— %
Solar tax credits— %— %(5)%
General business credits5 %— %— %
Nondeductible executive compensation(11)%1 %— %
Nondeductible goodwill(16)%— %— %
Pillar 2 Income Taxes(1)%— %— %
Foreign-derived intangible income1 %— %— %
Non-deductible meals & entertainment(2)%— %— %
Changes in valuation allowances1 %— %— %
Changes in reserves for uncertain tax positions(7)%— %— %
Nontaxable solar tax credits66 %(3)%— %
Return to provision(2)%— %— %
Other(2)%— %1 %
Effective income tax rate18 %19 %19 %

The Company’s effective tax rate for fiscal 2025 differs from the statutory rate primarily due to disallowed tax loss on the sale of Northwest Polymers Inc. of $4,219 and disallowed goodwill impairment of $3,001 offset by the tax benefit of nontaxable solar manufacturing credits of $12,258.
The Company’s effective tax rate for fiscal 2024 differs from the statutory rate primarily due to state income taxes of $12,805 offset by the tax benefit of nontaxable solar manufacturing credits of $18,972 and the excess tax benefits from share-based compensation of $13,773.

The Company’s effective tax rate for fiscal 2023 differs from the statutory rate primarily due to state income taxes of $21,630, and solar tax credits of $39,493.
Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of the net deferred income tax assets are as follows:
(in thousands)September 30, 2025September 30, 2024
Deferred tax assets:
Accrued liabilities and reserves$38,820 $39,232 
Tax loss and credit carryforwards20,506 20,436 
Capitalized research and development10,854 8,446 
Inventory17,089 14,274 
Lease obligations42,544 46,179 
Other1,939 1,121 
$131,752 $129,688 
Deferred tax liabilities:
Property, plant and equipment$(31,773)$(40,373)
Intangible assets(11,961)(43,487)
Right-of-use assets, net(38,932)(44,722)
Other(5,820)(6,609)
$(88,486)$(135,191)
Net deferred tax liability before valuation allowance43,266 (5,503)
Valuation allowance(20,854)(20,517)
Net deferred tax liability$22,412 $(26,020)

As of September 30, 2025, the Company has $24,687 of state net operating loss carryforwards which expire beginning in 2026 through 2045. In certain non-U.S. jurisdictions, the Company has net operating loss carryforwards of $73,879 which have an expiration period ranging from five years to unlimited.

Valuation allowances have been established on net operating losses and other deferred tax assets in Luxembourg, Australia, France, China, and other foreign and United States state jurisdictions, as a result of the Company's determination that there is less than 50% likelihood that these assets will be realized. Evidence for this determination includes three year cumulative loss positions, future reversal of temporary differences, and expectations of future losses.

As of September 30, 2025, and September 30, 2024, the Company had unrecognized tax benefits of $4,517 and $3,367 which, if recognized, would positively benefit the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. As of September 30, 2025 and September 30, 2024, the Company had accrued interest and penalties of $648 and $516, respectively, in the consolidated balance sheets.
    
A reconciliation of the beginning and ending amount of unrecognized tax benefit, excluding interest and penalties, is as follows:
(in thousands)For the period from September 30, 2022 to September 30, 2025
Balance as of September 30, 2022$985 
Additions based on tax positions related to prior years(75)
Additions based on tax positions related to current year1,792 
Settlements(121)
Balance as of September 30, 20232,581 
Additions based on tax positions related to prior years84 
Additions based on tax positions related to current year1,287 
Settlements(585)
Balance as of September 30, 20243,367 
Additions based on tax positions related to prior years578 
Additions based on tax positions related to current year754 
Expiration of statute of limitations(182)
Balance as of September 30, 2025$4,517 

During fiscal 2025, the balance of unrecognized tax benefits increased by $1,332 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $182 as a result of expiration of statute of limitations. The related accrued penalties and interest for uncertain tax positions increased by $132.

During fiscal 2024, the balance of unrecognized tax benefits increased by $1,370 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $585 as a result of completing tax audits. The related accrued penalties and interest for uncertain tax positions increased by $281.

During fiscal 2023, the balance of unrecognized tax benefits increased by $1,792 as a result of federal and various state jurisdictions’ uncertain positions, partially offset by a decrease of $196 as a result of completing tax audits and the expiration of the statute of limitations in various state jurisdictions. The related accrued penalties and interest for uncertain tax positions increased by $158.

Many of the Company’s uncertain tax positions relate to tax years that remain subject to audit by the taxing authorities.

The following tax years remain subject to examination by the major tax jurisdictions as follows:

JurisdictionYears Open to Audit
United States2022, 2023 and 2024

The Company's income tax returns are examined periodically by various taxing authorities. The Company is currently under examination in various state jurisdictions. Based on the current status of its income tax audits, the Company believes that it is reasonably possible that there would be no material changes to the unrecognized tax benefits in the next twelve months.

Other Income Tax Matters —

As of September 30, 2025, certain subsidiaries had approximately $182,176 of undistributed income that the Company intends to permanently reinvest. The Company recorded no additional liability for United States or non-U.S income taxes on the undistributed earnings. A liability could arise if the Company's intention to permanently reinvest such income were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed of. It is not practicable to estimate the
additional income taxes related to permanently reinvested income or the basis differences related to investments in subsidiaries.
The calculation of the Company's tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across its global operations. The Company records tax liabilities for anticipated tax audit issues in the United States and other tax jurisdictions based on the Company's estimate of whether, and the extent to which, additional taxes will be due. These tax liabilities are reflected net of related tax loss carry-forwards. The Company adjusts these reserves in light of changing facts and circumstances. However, due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the Company's current estimate of the tax liabilities.