INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2013

Significant components of the provision for income taxes

Years ended September 30,	2013			2012		2011
	(in thousands)
Current:
Federal	$	10,177		$	15,190	$	(999	)
State	2,437			1,927		810
Foreign	16,688			18,972		22,740
Total current	29,302			36,089		22,551

Deferred:
Federal	(14,182		)	331		9,356
State	(2,720		)	328		299
Foreign	1,805			1,435		167
Total deferred provision	(15,097		)	2,094		9,822
Total income tax expense	$	14,205		$	38,183	$	32,373

Significant components of deferred tax assets and liabilities

September 30,	2013			2012
	(in thousands)

Deferred tax assets:
Accrued employee benefits	$	11,642		$	12,490
Long-term contracts and inventory valuation reductions	14,152			8,343
Allowances for loss contingencies	5,441			6,242
Deferred compensation	4,346			3,756
Property, plant and equipment	1,127			726
Intangible assets	477			—
Retirement benefits	5,678			14,549
State research and development credit carryforward	4,839			3,882
Net operating losses	18,452			10,909
Foreign currency mark-to-market	302			2,192
Other	1,746			313
Subtotal	68,202			63,402
Valuation allowance	(8,614		)	(4,205		)
Deferred tax assets	59,588			59,197

Deferred tax liabilities:
Intangible assets	—			8,608
Deferred revenue	28,865			25,277
State taxes	995			269
Foreign currency mark-to-market	290			146
Other	1,762			946
Deferred tax liabilities	31,912			35,246
Net deferred tax asset	$	27,676		$	23,951

Reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense

Years ended September 30,	2013			2012			2011
	(in thousands)

Tax at U.S. statutory rate	$	11,965		$	45,601		$	40,697
State income taxes, net of federal tax effect	120			1,364			1,297
Nondeductible expenses	1,609			286			893
Change in reserve accrued for tax contingencies	44			(2,909		)	1,504
Impact of goodwill impairment loss	10,046			—			—
Change in valuation allowance	3,857			—			—
Tax effect from foreign earnings repatriation	—			2,773			—
Foreign earnings taxed at less than statutory rate	(6,392		)	(7,153		)	(6,415		)
R&D credits generated in the current year	(3,202		)	(906		)	(2,696		)
Reinstatement of federal research and development credit	(1,937		)	—			(1,406		)
Manufacturing deduction	(1,333		)	(630		)	(1,476		)
Other	(572		)	(243		)	(25		)
	$	14,205		$	38,183		$	32,373

Net changes in the liability for unrecognized tax benefits

Years ended September 30,	2013			2012
	(in thousands)

Balance at October 1	$	8,267		$	10,715
Increase (decrease) related to tax positions in prior years:
Recognition of benefits from expiration of statutes	(240		)	(1,227		)
Settlements with taxing authorities	(2,332		)	(1,257		)
Other	824			(585		)
Tax positions related to the current year	934			409
Currency translation adjustment	(40		)	212
Balance at September 30	$	7,413		$	8,267

Components of income (loss) before income taxes

Income (loss) before income taxes includes the following components (in thousands):

Years ended September 30,	2013			2012		2011
	(in thousands)
United States	$	(26,631	)	$	38,428	$	33,955
Foreign	60,817			91,859		82,322
Total	$	34,186		$	130,287	$	116,277

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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