INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2012

Domestic and foreign income before income taxes for the three-year period ended September 30, 2012, is as follows (in thousands):

The provision (benefit) for domestic and foreign taxes on income consists of the following (in thousands):

The components of the deferred income tax assets (liabilities) as of September 30, 2012 and 2011 are as follows (in thousands):



	September 30,
	2012			2011
Deferred tax assets—
Net operating loss carryforwards	$	26,067		$	16,014
Tax credit carryforwards	1,246			1,618
Stock option compensation expense	8,047			7,105
Book accruals	4,859			3,273
	40,219			28,010
Deferred tax liabilities—
Difference in book and tax basis of equipment	(10,572		)	(12,222		)
	(10,572		)	(12,222		)
Net deferred tax assets (liabilities) before valuation allowance	29,648			15,788
Valuation allowance	(38,439		)	(25,568		)
	$	(8,791	)	$	(9,780	)
Net current deferred tax assets	$	—		$	—
Net noncurrent deferred tax liabilities	(8,791		)	(9,780		)
	$	(8,791	)	$	(9,780	)

A summary of activity related to the net uncertain tax positions including penalties and interest for fiscal year 2012 is as follows:



	Liability for Uncertain
	Tax Positions
Balance at October 1, 2011	$	16,804
Decreases due to the resolution of prior period tax examinations	(8,640		)
Balance at September 30, 2012	$	8,164

The differences between the United States statutory and our effective income tax rate are as follows:



	Fiscal 2012		Fiscal 2011		Fiscal 2010
Statutory income tax rate	35	%	35	%	35	%
Resolution of prior period tax items	(3	)	—		1
Increase in tax rate resulting from—
Valuation allowance	4		2		2
Increases to the reserve for uncertain tax positions	—		2		1
Decrease in tax rate resulting from—
Foreign tax rate differentials, net of foreign tax credit utilization	(23	)	(23	)	(19	)
Effective income tax rate	13	%	16	%	20	%