INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2015

INCOME TAXES

Components of income (loss) before income taxes

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

Years ended September 30,	2015			2014			2013
	(in thousands)
United States	$	(18,712	)	$	(22,788	)	$	(31,640	)
Foreign	90,623			112,199			71,411
Total	$	71,911		$	89,411		$	39,771

Significant components of the provision for income taxes

Years ended September 30,	2015			2014			2013
	(in thousands)
Current:
Federal	$	(2,433	)	$	(8,049	)	$	8,198
State	723			918			2,437
Foreign	20,266			25,705			18,581
Total current	18,556			18,574			29,216
Deferred:
Federal	24,112			1,296			(14,182		)
State	5,710			(1,232		)	(2,720		)
Foreign	619			1,193			2,188
Total deferred	30,441			1,257			(14,714		)
Provision for income taxes	$	48,997		$	19,831		$	14,502

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

Years ended September 30,	2015			2014			2013
	(in thousands)
Tax expense at U.S. statutory rate	$	25,169		$	31,294		$	13,920
State income taxes, net of federal tax effect	(34		)	111			120
Nondeductible expenses	1,555			1,319			1,609
Change in reserve for tax contingencies	(1,192		)	(601		)	(673		)
Impact of goodwill impairment loss	—			—			10,046
Change in deferred tax asset valuation allowance	38,284			3,109			5,161
Foreign earnings taxed at less than statutory rate	(11,924		)	(12,783		)	(7,521		)
Tax credits generated in the current year	(1,696		)	(2,772		)	(4,319		)
Reinstatement of federal research and development credit	(1,247		)	—			(1,937		)
Manufacturing deduction	—			—			(1,333		)
Other	82			154			(571		)
Provision for income taxes	$	48,997		$	19,831		$	14,502

Significant components of deferred tax assets and liabilities

September 30,	2015			2014
	(in thousands)
Deferred tax assets:
Accrued employee benefits	$	12,597		$	13,944
Long-term contracts and inventory valuation reductions	13,297			9,554
Allowances for loss contingencies	3,793			5,121
Deferred compensation	4,252			4,310
Property, plant and equipment	1,611			1,507
Intangible assets	8,037			2,324
Retirement benefits	8,040			4,729
Tax credit carryforwards	11,151			7,285
Net operating losses carryforwards	14,795			15,662
Other	867			585
Total gross deferred tax assets	78,440			65,021
Valuation allowance	(54,759		)	(14,024		)
Total deferred tax assets	23,681			50,997
Deferred tax liabilities:
Deferred revenue	(23,981		)	(22,507		)
Other	(2,248		)	(1,943		)
Total deferred tax liabilities	(26,229		)	(24,450		)
Net deferred tax asset (liability)	$	(2,548	)	$	26,547

Net changes in the liability for unrecognized tax benefits

Years ended September 30,	2015			2014
	(in thousands)
Balance at beginning of year	$	7,306		$	8,441
Increase (decrease) related to tax positions in prior years:
Recognition of benefits from expiration of statutes	(1,068		)	(973		)
Settlements with taxing authorities	—			(728		)
Other	3,125			(54		)
Tax positions related to the current year	472			743
Tax positions related to current year acquisitions	2,784			—
Currency translation adjustment	—			(123		)
Balance at end of year	$	12,619		$	7,306