Income Taxes Income Taxes (Tables)

12 Months Ended

Sep. 30, 2013

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,
	2013			2012			2011
	(dollars in thousands)
Current:
United States	$	(150	)	2,440			$	800
Foreign	800			(9,380		)	15,910
State	(110		)	(90		)	110
Total current	540			(7,030		)	16,820
Deferred:
United States	(290		)	—			(100		)
Foreign	1,610			1,700			(520		)
State	—			10			(10		)
Total deferred	1,320			1,710			(630		)
Total provision (benefit)	$	1,860		$	(5,320	)	$	16,190

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-four percent is as follows:

	Year Ended September 30,
	2013			2012			2011
	(dollars in thousands)
Tax provision (benefit) at the U.S. rate	$	(6,750	)	$	(11,190	)	$	13,410
Effect of permanent book-tax differences	970			2,010			510
State tax provision	(110		)	(80		)	100
Valuation allowance for net deferred tax assets	5,850			1,740			470
Uncertain tax items	450			(240		)	1,620
Expiration of foreign net operating loss	—			2,320			170
Difference between U.S. and foreign rates	1,440			—			—
Other items	10			120			(90		)
	$	1,860		$	(5,320	)	$	16,190

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,
	2013			2012			2011
	(dollars in thousands)
Deferred tax assets - current:
Capitalized inventory costs	$	130		$	90		150
Inventory write-downs	620			600			590
Accrued warranty	200			20			(580		)
Deferred profits	800			2,510			6,820
Accruals and reserves not currently deductible	490			240			2,580
Deferred tax assets - current	$	2,240		$	3,460		$	9,560
Valuation allowance	(910		)	—			—
Deferred tax assets - current net of valuation allowance	$	1,330		$	3,460		$	9,560
Deferred tax assets (liabilities)- non-current:
Stock option expense	700			470			270
Book vs. tax basis of acquired assets	(1,130		)	(1,280		)	(760		)
Foreign and state net operating losses	9,000			3,640			850
Book vs. tax depreciation and amortization	60			100			300
Foreign tax credits	520			—			—
Other deferred tax assets	(350		)	140			90
Total deferred tax assets - non-current	8,800			3,070			750
Valuation allowance	(7,540		)	(2,600		)	(860		)
Deferred tax assets (liabilities) - non-current, net of valuation allowance	$	1,260		$	470		$	(110	)

Changes in Deferred Tax Valuation Allowance

Changes in the deferred tax valuation allowance are as follows:

	Year Ended September 30,
	2013		2012		2011
	(dollars in thousands)
Balance at the beginning of the year	$	2,600	$	860	$	390
Additions to valuation allowance	5,850		1,740		470
Balance at the end of the year	$	8,450	$	2,600	$	860

Schedule of Unrecognized Tax Benefit Liabilities

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows:

	Year Ended September 30,
	2013			2012			2011
	(dollars in thousands)
Balances at beginning of the year	$	2,360		$	2,630		$	1,010
Additions (reductions) related to current year tax positions	—			(390		)	1,210
Additions related to tax positions taken in prior years	530			360			450
Reductions related to settlements with tax authorities	—			(240		)	—
Reductions due to lapse of statute of limitations	(80		)	—			(40		)
Balance at the end of the year	$	2,810		$	2,360		$	2,630