Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Components of Income (Loss) Before Income Taxes

Components of income (loss) before income taxes were as follows (in thousands):

	YEAR ENDED SEPTEMBER 30,
	2014		2013			2012
United States	$	48,988	$	103,349		$	50,819
Foreign		4,555		(2,256	)		1,043
	$	53,543	$	101,093		$	51,862

Computation of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consisted of the following (in thousands):

	YEAR ENDED SEPTEMBER 30,
	2014		2013			2012
Current:
Federal	$	15,352	$	31,954		$	15,543
Foreign		393		(19	)		24
State		69		124			369
		15,814		32,059			15,936
Deferred:
Federal		41		43			413
Foreign		777		(566	)		395
		818		(523	)		808
	$	16,632	$	31,536		$	16,744

Reconciliation of Actual Income Tax Expenses (Benefits)

Actual income tax expense (benefit) differs from income tax expense computed by applying the statutory federal tax rate of 35.0% for each of the fiscal years ended September 30, 2014, 2013 and 2012 as follows (in thousands):

	YEAR ENDED SEPTEMBER 30,
	2014			2013			2012
Provision for U.S. federal income tax at statutory rate	$	18,740		$	35,382		$	18,153
Effect of foreign income taxes		(629	)		130			(140	)
Manufacturers’/producers’ deduction		(1,496	)		(3,048	)		(1,868	)
Research and experimentation tax credits		(208	)		(661	)		(99	)
State income taxes, net of federal income tax benefit		45			81			240
Nondeductible expenses		205			253			165
Resolution of prior years’ tax matters		20			(467	)		544
Contingency for uncertainty in income taxes		—			(51	)		(335	)
Other items		(45	)		(83	)		84
	$	16,632		$	31,536		$	16,744
Effective tax rate		31.1	%		31.2	%		32.3	%

Components of Net Deferred Income Tax Asset

Deferred income taxes under the liability method reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax asset were as follows (in thousands):

	AS OF SEPTEMBER 30, 2014									AS OF SEPTEMBER 30, 2013
	U. S.			Non U.S.			Total			U. S.			Non U.S.			Total
Deferred income tax assets:
Allowance for doubtful accounts	$	214		$	73		$	287		$	120		$	4		$	124
Inventories		5,035			(125	)		4,910			4,762			(71	)		4,691
Net operating loss carry-forwards, tax credits and deferrals		—			871			871			—			1,204			1,204
Stock-based compensation		1,658			—			1,658			298			—			298
Accrued product warranty		317			8			325			644			22			666
Accrued compensated absences		579			—			579			549			—			549
Comprehensive income		1,344			—			1,344			573			—			573
Insurance and other reserves		1,088			31			1,119			973			63			1,036
		10,235			858			11,093			7,919			1,222			9,141
Deferred income tax liabilities:
Intangible assets		(285	)		—			(285	)		(230	)		—			(230	)
Property, plant and equipment and other		(4,768	)		(1,121	)		(5,889	)		(3,238	)		(632	)		(3,870	)
Subtotal deferred income tax asset		5,182			(263	)		4,919			4,451			590			5,041
Valuation allowance		—			—			—			—			—			—
Net deferred income tax asset	$	5,182		$	(263	)	$	4,919		$	4,451		$	590		$	5,041

Net Classification of Deferred Income Tax Assets and Liabilities in Balance Sheet

Deferred income tax assets and liabilities are reported as follows in the accompanying consolidated balance sheets (in thousands):

	AS OF SEPTEMBER 30,
	2014			2013
Current deferred income tax asset	$	7,244		$	7,056
Noncurrent deferred income tax asset		75			594
Current deferred income tax liability		(23	)		(12	)
Noncurrent deferred income tax liability		(2,377	)		(2,597	)
	$	4,919		$	5,041

Reconciliation of the Total Amounts of Unrecognized Tax Liabilities

The following table is a reconciliation of the total amounts of unrecognized tax liabilities (in thousands):

Balance at October 1, 2011	$	852
Change in prior year tax positions		(420	)
Current tax positions		63
Settlements with taxing authorities		(145	)
Lapse of statute of limitations		5
Balance at September 30, 2012		355
Change in prior year tax positions		(22	)
Current tax positions		142
Settlements with taxing authorities		(47	)
Lapse of statute of limitations		(114	)
Balance at September 30, 2013		314
Change in prior year tax positions		9
Current tax positions		23
Settlements with taxing authorities		—
Lapse of statute of limitations		(45	)
Balance at September 30, 2014	$	301