INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2025

The income tax provision (benefit) consisted of the following:

The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows:


	2025		2024		2023
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Effect of state income taxes, net of federal deduction	25.4	%	1.3	%	3.8	%
Foreign statutory taxes compared to federal statutory rate	(23.6)	%	19.6	%	(0.7)	%
Share-based compensation	13.8	%	(0.7)	%	3.6	%

Tax credits (net of withholding taxes)	(8.5)	%	3.6	%	(7.0)	%





Goodwill write-down	—	%	(4.9)	%	—	%

Nontaxable income	(2.0)	%	5.0	%	(7.5)	%
Nondeductible held-for-sale asset write-downs	10.3	%	(4.0)	%	—	%
Change in realizability of foreign deferred tax assets	43.8	%	(30.7)	%	(9.5)	%


Sale of SGK Business	157.5	%	—	%	—	%
Pillar Two top-up tax	5.3	%	—	%	—	%
Sale of foreign assets	8.6	%	—	%	—	%
Other	(0.8)	%	4.2	%	0.6	%
Effective tax rate	250.8	%	14.4	%	4.3	%

The components of deferred tax assets and liabilities at September 30, 2025 and 2024 are as follows:


	2025		2024
Deferred tax assets:
Pension and postretirement benefits	$	5,953	$	6,405
Accruals and reserves not currently deductible	16,734		16,992
Income tax credit carryforward	5,671		5,563
Operating and capital loss carryforwards	91,119		83,234
Stock options	8,701		8,266
Research and development capitalization	16,557		18,299
Operating lease liability	13,369		15,833
Interest carryforward	15,257		10,796
Other	9,420		6,078
Total deferred tax assets	182,781		171,466
Valuation allowances	(66,632)		(45,462)
Net deferred tax assets	116,149		126,004

Deferred tax liabilities:
Depreciation	(21,130)		(25,724)

Goodwill and intangible assets	(74,471)		(95,828)
Revenue recognized over time	(32,359)		(27,467)
Operating lease right-of-use assets	(12,949)		(15,282)
Investment in Propelis	(24,320)		—
Other	(452)		(843)
Total deferred tax liabilities	(165,681)		(165,144)

Net deferred tax liability	$	(49,532)	$	(39,140)

Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows:


	2025		2024		2023
Balance, beginning of year	$	4,506	$	3,779	$	4,123

Increases for tax positions of prior years	65		378		100
Decreases for tax positions of prior years	(2,648)		—		—
Increases based on tax positions related to the current year	1,340		1,044		769

Decreases due to lapse of statute of limitation	(291)		(695)		(1,213)
Balance, end of year	$	2,972	$	4,506	$	3,779

As of September 30, 2025, the tax years that remain subject to examination by major jurisdiction generally are: