Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Components of Income (Loss) Before Income Taxes

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

	YEAR ENDED SEPTEMBER 30,
	2016			2015			2014
United States	$	(45,506	)	$	(41,700	)	$	48,988
Foreign		(9,827	)		(8,134	)		4,555
	$	(55,333	)	$	(49,834	)	$	53,543

Computation of Provision (Benefit) for Income Taxes

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

	YEAR ENDED SEPTEMBER 30,
	2016			2015			2014
Current
Federal	$	(13,726	)	$	(16,901	)	$	15,352
Foreign		148			647			393
State		6			4			69
		(13,572	)		(16,250	)		15,814
Deferred:
Federal		2,881			964			41
Foreign		1,328			(1,907	)		777
		4,209			(943	)		818
	$	(9,363	)	$	(17,193	)	$	16,632

Reconciliation of Actual Income Tax Expenses (Benefits)

Actual income tax expense (benefit) differs from income tax expense computed by applying the U.S. statutory federal tax rate of 35.0% for each of the fiscal years ended September 30, 2016, 2015 and 2014 as follows (in thousands):

	YEAR ENDED SEPTEMBER 30,
	2016			2015			2014
Provision (benefit) for U.S federal income tax at statutory rate	$	(19,365	)	$	(17,442	)	$	18,740
Effect of foreign income taxes		630			249			(629	)
Manufacturers’/producers’ deduction		—			—			(1,496	)
Research and experimentation tax credit		(686	)		(400	)		(208	)
State income taxes, net of federal income tax benefit		4			2			45
Nondeductible expenses		149			488			205
Resolution of prior years’ tax matters		—			96			20
Adjustment to prior year manufacturers’/producers’ deduction		1,450			—			—
Correction of prior year income tax benefit		950			—			—
Contingency for uncertainty in income taxes		—			(121	)		—
Change in valuation allowance		7,715			—			—
Other items		(210	)		(65	)		(45	)
	$	(9,363	)	$	(17,193	)	$	16,632
Effective tax rate		(14.1	)%		(34.5	)%		31.1	%

Components of Net Deferred Income Tax Asset

Deferred income taxes 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, 2016									AS OF SEPTEMBER 30, 2015
	U.S.			Non U.S.			Total			U.S.			Non U.S.			Total
Deferred income tax assets:
Allowance for doubtful accounts	$	715		$	51		$	766		$	681		$	21		$	702
Inventories		5,089			21			5,110			4,350			(34	)		4,316
Net operating loss carry-forwards, tax credits and deferrals		3,000			3,823			6,823			—			2,270			2,270
Stock-based compensation		1,905			—			1,905			1,690			—			1,690
Accrued product warranty		130			4			134			803			6			809
Accrued compensated absences		467			—			467			520			—			520
Currency translation adjustments		—			—			—			101			—			101
Insurance and other reserves		170			—			170			62			43			105
		11,476			3,899			15,375			8,207			2,306			10,513
Deferred income tax liabilities:
Intangible assets		—			—			—			31			—			31
Property, plant and equipment and other		(7,470	)		(11	)		(7,481	)		(5,264	)		(770	)		(6,034	)
Subtotal deferred income tax assets		4,006			3,888			7,894			2,974			1,536			4,510
Valuation allowance		(4,006	)		(3,709	)		(7,715	)		—			—			—
Net deferred income tax assets	$	—		$	179		$	179		$	2,974		$	1,536		$	4,510

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,
	2016			2015
Deferred income tax assets, net	$	216		$	4,554
Deferred income tax liabilities, net		(37	)		(44	)
	$	179		$	4,510

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, 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
Change in prior year tax positions		(187	)
Current tax positions		17
Settlements with taxing authorities		—
Lapse of statute of limitations		(56	)
Balance at September 30, 2015		75
Change in prior year tax positions		(70	)
Current tax positions		—
Settlements with taxing authorities		—
Lapse of statute of limitations		(4	)
Balance at September 30, 2016	$	1