Income Taxes Income Taxes (Tables)

12 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Schedule of Components of the Provision (Benefit) for Income Taxes

The components of the provision (benefit) for income taxes are as follows:

	Year Ended September 30,
	2012			2011			2010
	(dollars in thousands)
Current:
Domestic Federal	$	2,440		800			$	200
Foreign	(9,380		)	15,910			7,200
Domestic state	(90		)	110			110
Total current	(7,030		)	16,820			7,510
Deferred:
Domestic Federal	—			(100		)	(1,540		)
Foreign	1,700			(520		)	180
Domestic state	10			(10		)	—
Total deferred	1,710			(630		)	(1,360		)
Total provision (benefit)	$	(5,320	)	$	16,190		$	6,150

Reconciliation of Actual Income Taxes to Expected Federal Corporate Income Taxes

A reconciliation of actual income taxes to income taxes at the expected United States federal corporate income tax rate of thirty-five percent is as follows:

	Year Ended September 30,
	2012			2011			2010
	(dollars in thousands)
Tax provision (benefit) at the statutory federal rate	$	(11,190	)	$	13,410		$	5,340
Effect of permanent book-tax differences	2,010			510			240
State tax provision	(80		)	100			20
Valuation allowance for net deferred tax assets	1,740			470			90
Uncertain tax items	(240		)	1,620			530
Expiration of foreign net operating loss	2,320			170			—
Other items	120			(90		)	(70		)
	$	(5,320	)	$	16,190		$	6,150

Schedule of Deferred Tax Assets and Deferred Tax Liability

The tax effects of temporary book-tax differences that give rise to significant portions of the deferred tax assets and deferred tax liability are as follows:

	Year Ended September 30,
	2012			2011			2010
	(dollars in thousands)
Deferred tax assets - current:
Capitalized inventory costs	$	90		$	150		470
Inventory write-downs	600			590			820
Accrued Warranty	20			(580		)	370
Deferred profits	2,510			6,820			(180		)
Accruals and reserves not currently deductible	240			2,580			650
Deferred tax assets - current net of valuation allowance	$	3,460		$	9,560		$	2,130
Deferred tax assets (liabilities)- non-current:
Stock option expense	470			270			430
Book vs. tax basis of acquired assets	(1,280		)	(760		)	(670		)
Foreign and state net operating losses	3,640			850			380
Book vs. tax depreciation and amortization	100			300			350
Foreign tax credits	—			—			2,540
Other deferred tax assets	140			90			20
Total deferred tax assets - net	3,070			750			3,050
Valuation allowance	(2,600		)	(860		)	(390		)
Deferred tax assets (liabilities)- non-current, net of valuation allowance	$	470		$	(110	)	$	2,660

Changes in Deferred Tax Valuation Allowance

Changes in the deferred tax valuation allowance are as follows:

	Year Ended September 30,
	2012		2011		2010
	(dollars in thousands)
Balance at the beginning of the year	$	860	$	390	$	300
Additions (subtractions) to valuation allowance	1,740		470		90
Balance at the end of the year	$	2,600	$	860	$	390

Schedule of Unrecognized Tax Benefit Liabilities

	Year Ended September 30,
	2012			2011			2010
	(dollars in thousands)
Balances at beginning of the year	$	2,630		$	1,010		$	480
Additions (reductions) related to current year tax positions	(390		)	1,210			490
Additions related to tax positions taken in prior years	360			450			70
Reductions related to settlements with tax authorities	(240		)	—			—
Reductions due to lapse of statute of limitations	—			(40		)	(30		)
Balance at the end of the year	$	2,360		$	2,630		$	1,010