Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Components of Income Tax Provision (Benefit)

The components of the income tax provision (benefit) from continuing operations for the fiscal years are as follows (in thousands):


	Year Ended September 30,
	2018		2017		2016
Current income tax provision (benefit):
Federal	$	—	$	—	$	(145)
State		917		402		(193)
Foreign		7,608		7,499		4,709
Total current income tax provision		8,525		7,901		4,371
Deferred income tax provision (benefit):
Federal		(48,815)		(4,247)		59,906
State		(5,518)		(249)		4,000
Foreign		(1,443)		(25)		(2,027)
Total deferred income tax provision (benefit)		(55,776)		(4,521)		61,879
Income tax provision (benefit)	$	(47,251)	$	3,380	$	66,250

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 of equity method investments for the fiscal years are as follows (in thousands):


	Year Ended September 30,
	2018		2017		2016
Domestic	$	3,122	$	(13,211)	$	(26,775)
Foreign		17,344		27,731		8,633
	$	20,466	$	14,520	$	(18,142)

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 rates for the fiscal years ended September 30, 2018, 2017 and 2016 are as follows (in thousands):


	Year Ended September 30,
	2018		2017		2016
Income tax provision computed at federal statutory rate	$	5,014	$	4,923	$	(6,722)
State income taxes, net of federal benefit		692		137		(374)
Foreign income taxed at different rates		920		(1,644)		(690)
Impact of investments in subsidiaries		(729)		(965)		(971)
Change in deferred tax asset valuation allowance		(75,918)		319		76,486
Net increase (reduction) in uncertain tax positions		220		731		(1,543)
Impact of U.S. federal tax rate change		15,287		—		—
Compensation		(701)		579		743
Tax credits		(1,633)		(1,151)		(1,555)
Merger costs		1,405		—		503
Transition Tax		8,027		—		—
Other		165		451		373
Income tax provision (benefit)	$	(47,251)	$	3,380	$	66,250

Significant Components of Net Deferred Tax Assets and Liabilities

The significant components of the net deferred tax assets and liabilities as of September 30, 2018 and 2017 are as follows (in thousands):


	September 30,
	2018		2017
Accruals and reserves not currently deductible	$	14,581	$	18,747
Federal, state and foreign tax credits		27,923		25,413
Other assets		175		42
Equity compensation		5,926		7,615
Net operating loss carryforwards		16,790		50,882
Inventory reserves and valuation		6,520		9,847
Deferred tax assets		71,915		112,546
Depreciation and intangible amortization		(19,476)		(21,200)
Deferred tax liabilities		(19,476)		(21,200)
Valuation allowance		(18,581)		(93,402)
Net deferred tax asset (liability)	$	33,858	$	(2,056)

The deferred tax assets on the balance sheet for September 30, 2018 also includes a $2.8 million deferred tax charge related to the company’s intercompany profit elimination. This amount is included in the net deferred tax asset recorded on the balance sheet.

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, 2018, 2017 and 2016 is as follows (in thousands):


	Total
Balance at September 30, 2015	$	2,191
Reductions from settlements with taxing authorities		4,165
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)
Net reductions from lapses in statutes of limitations		(431)
Foreign exchange rate adjustment		(2)
Balance at September 30, 2017		3,378
Additions for tax positions in current year		874
Reduction for tax positions in prior year		(656)
Reductions from lapses in statutes of limitations		(353)
Balance at September 30, 2018	$	3,243