Income Taxes K (Tables)

12 Months Ended

Sep. 30, 2018

Income Taxes

Components of discrete income tax expense

	Year Ended
	September 30, 2018
Transition Tax (provisional)	$	13,580
Net impact on U.S. deferred tax assets and liabilities (provisional)		(16,038)
Net changes in deferred tax liability associated with anticipated repatriation taxes (provisional)		8,121
Total provisional impact of the enactment of the Tax Act		5,663
Impact on the U.S. net deferred tax assets from IRS audit changes and tax return adjustments		5,197
Net impact of the enactment of the Tax Act	$	10,860

Components of Income Tax Expense (Benefit)

		Year Ended September 30,
		2018		2017		2016
Current:
	Federal	$	39,979	$	17,872	$	81,127
	State		3,697		1,379		6,067
	Foreign		25,968		15,118		9,689
Deferred:
	Federal		(10,519)		16,907		(40,801)
	State		(3,784)		(2,561)		(9,054)
	Foreign		(16,141)		3,525		(1,380)
		$	39,200	$	52,240	$	45,648

Earnings Before Income Taxes by Geographical Area

	Year Ended September 30,
	2018		2017		2016
United States	$	181,671	$	192,220	$	175,146
Other countries		37,907		60,527		51,340
	$	219,578	$	252,747	$	226,486

Composition of Deferred Income Taxes

		At September 30,
		2018		2017
Deferred tax assets:
	Defined benefit plans, other postretirement	$	6,844	$	11,947
	Foreign net operating loss carryforwards		6,071		4,707
	Inventory		23,549		29,444
	Stock-based and other compensation		39,903		37,693
	Defined benefit plans, pension		2,187		1,148
	Deferred revenue		60,177		92,426
	Other reserves		10,154		10,850
	Tax credits and incentives		12,512		9,769
	Other		9,887		7,700
	Valuation allowance		(4,522)		(3,714)
	Total deferred tax assets, net of valuation allowance		166,762		201,970
Deferred tax liabilities:
	Goodwill and intangibles - net		(231,223)		(103,781)
	Property, plant and equipment		(85,459)		(109,229)
	Other		(4,425)		(2,418)
	Total deferred tax liabilities		(321,107)		(215,428)
Net deferred tax liabilities		$	(154,345)	$	(13,458)

Reconciliation of U.S. Statutory Tax Rate to Effective Tax Rate

	Year Ending September 30,
	2018		2017		2016
Percent of pretax earnings
Statutory tax rate	24.5	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	(0.5)		(0.3)		0.4
Taxes on international activities	(1.8)		(7.6)		(2.2)
Research credit	(4.8)		(3.2)		(3.6)
Net excess income tax benefit from stock-based compensation	(1.4)		(1.4)		(2.6)
Domestic production activities deduction	(1.6)		(1.5)		(2.1)
Adjustments of prior period tax items	(5.0)		(0.9)		(0.2)
Effect of U.S. federal corporate rate reduction on net beginning U.S. deferred tax liability	(5.0)		-		-
Transition Tax	6.2		-		-
Increased deferred tax liability associated with anticipated repatriation taxes	3.7		-		-
Effect of U.S. federal corporate rate reduction on net current year U.S. deferred tax activity	2.0		-		-
Retroactive extension of research credit	-		-		(3.2)
Other items, net	1.6		0.6		(1.3)
Effective tax rate	17.9	%	20.7	%	20.2	%

Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits

	Year Ending September 30,
	2018		2017		2016
Beginning balance	$	20,132	$	23,526	$	21,469
Additions to current year tax positions		2,675		2,560		3,588
Reductions to prior year tax positions		(14,458)		(5,753)		(2,292)
Additions to prior year tax positions		15		3,501		761
Lapse of applicable statute of limitations		-		(3,702)		-
Ending balance	$	8,364	$	20,132	$	23,526