Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) from continuing operations for the fiscal years ended September 30, 2017, 2016 and 2015 are as follows (in thousands):


	Year Ended September 30,
	2017		2016		2015
Current income tax provision (benefit):
Federal	$	—	$	(145)	$	10
State		473		(186)		56
Foreign		11,150		5,868		5,537
Total current income tax provision		11,623		5,537		5,603
Deferred income tax provision (benefit):
Federal		538		68,300		(1,773)
State		31		4,000		(104)
Foreign		(52)		(2,027)		(296)
Total deferred income tax provision (benefit)		517		70,273		(2,173)
Income tax provision	$	12,140	$	75,810	$	3,430

Components of Income Before Income Taxes and Equity in Earnings of Joint Ventures

The components of income (loss) from continuing operations before income taxes and equity in earnings (losses) of equity method investments for the fiscal years ended September 30, 2017, 2016 and 2015 are as follows (in thousands):


	Year Ended September 30,
	2017		2016		2015
Domestic	$	26,428	$	(8,186)	$	(1,321)
Foreign		38,943		12,140		19,136
	$	65,371	$	3,954	$	17,815

Differences between Income Tax Provision (benefit) and Income Taxes Computed using Applicable U.S. Statutory Federal Tax Rate

The differences between the income tax provision (benefit) on income (loss) from continuing operations including income from equity in earnings (losses) of equity method investments and income taxes computed using the applicable U.S. statutory federal tax rate of 35 percent for the fiscal years ended September 30, 2017, 2016 and 2015 are as follows (in thousands):


	Year Ended September 30,
	2017		2016		2015
Income tax provision computed at federal statutory rate	$	26,163	$	2,217	$	6,177
State income taxes, net of federal benefit		960		113		243
Foreign income taxed at different rates		(2,001)		(755)		(938)
Impact of equity investments		(2,499)		(1,666)		(1,069)
Change in deferred tax asset valuation allowance		(10,881)		77,531		(36)
Net increase (reduction) in uncertain tax positions		731		(1,543)		(1,207)
Nondeductible compensation		622		782		1,325
Tax credits		(1,412)		(1,786)		(1,741)
Travel and entertainment		266		274		314
Merger costs		—		503		228
Other		191		140		134
Income tax provision	$	12,140	$	75,810	$	3,430

Significant Components of Net Deferred Tax Assets and Liabilities

The significant components of the net deferred tax assets and liabilities as of September 30, 2017 and 2016 are as follows (in thousands):


	September 30,
	2017		2016
Accruals and reserves not currently deductible	$	18,747	$	16,382
Federal, state and foreign tax credits		25,413		24,183
Other assets		42		269
Equity compensation		7,615		4,447
Net operating loss carryforwards		49,777		73,097
Inventory reserves and valuation		9,847		11,342
Deferred tax assets		111,441		129,720
Depreciation and intangible amortization		(21,200)		(25,850)
Deferred tax liabilities		(21,200)		(25,850)
Valuation allowance		(92,297)		(104,802)
Net deferred tax liability	$	(2,056)	$	(932)

Reconciliation of Beginning and Ending Amount of Consolidated Liability for Unrecognized Income Tax Benefits

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the fiscal years ended September 30, 2017, 2016 and 2015 is as follows (in thousands):


	Total
Balance at October 1, 2014	$	4,262
Reductions from settlements with taxing authorities		(1,304)
Reductions from lapses in statutes of limitations		(734)
Foreign exchange rate adjustment		(33)
Balance at September 30, 2015		2,191
Additions for tax positions in current year		4,165
Net reductions from lapses in statutes of limitations		(897)
Foreign exchange rate adjustment		(32)
Balance at September 30, 2016		5,427
Additions for tax positions in current year		1,869
Reduction for tax positions in prior year		(3,485)
Reductions from lapses in statutes of limitations		(431)
Foreign exchange rate adjustment		(2)
Balance at September 30, 2017	$	3,378