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INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2012

Income before income taxes was as follows:

	Year Ended September 30,
	2012		2011		2010

Domestic	$	55,555	$	54,886	$	39,835
Foreign		7,316		24,026		33,442
Total	$	62,871	$	78,912	$	73,277

Schedule of taxes on income by jurisdiction

Taxes on income consisted of the following:

	Year Ended September 30,
	2012			2011			2010
U.S. federal and state:
Current	$	19,975		$	15,700		$	15,372
Deferred		(308	)		6,194			(2,643	)
Total	$	19,667		$	21,894		$	12,729

Foreign:
Current	$	5,593		$	6,616		$	10,597
Deferred		(3,215	)		(1,260	)		493
Total		2,378			5,356			11,090
Total U.S. and foreign	$	22,045		$	27,250		$	23,819

Income tax rate reconciliation

The provision for income taxes at our effective tax rate differed from the statutory rate as follows:

	Year Ended September 30,
	2012			2011			2010

Federal statutory rate		35.0	%		35.0	%		35.0	%
U.S. benefits from research and experimentation activities		(0.5	)		(2.0	)		(0.6	)
State taxes, net of federal effect		0.2			0.6			0.5
Foreign income at other than U.S. rates		(1.9	)		(2.8	)		(2.7	)
Executive compensation		0.8			1.4			-
Share-based compensation		0.7			3.3			0.3
Adjustment of prior amounts, net of valuation allowance		0.9			-			-
Domestic production deduction		(0.5	)		(0.8	)		(0.1	)
Tax-exempt interest income		(0.0	)		(0.1	)		(0.1	)
Other, net		0.4			(0.1	)		0.2
Provision for income taxes		35.1	%		34.5	%		32.5	%

Reconciliation of gross unrecognized tax benefits

The following table presents the changes in the balance of gross unrecognized tax benefits during the last three fiscal years:

Balance September 30, 2009	$	249
Additions for tax positions relating to the current fiscal year		-
Additions for tax positions relating to prior fiscal years		153
Settlements with taxing authorities		(28	)
Lapse of statute of limitations		(201	)
Balance September 30, 2010		173
Additions for tax positions relating to the current fiscal year		123
Additions for tax positions relating to prior fiscal years		307
Settlements with taxing authorities		-
Lapse of statute of limitations		-
Balance September 30, 2011		603
Additions for tax positions relating to the current fiscal year		51
Additions for tax positions relating to prior fiscal years		114
Settlements with taxing authorities		(353	)
Lapse of statute of limitations		(132	)
Balance September 30, 2012	$	283

Schedule of significant components of deferred income tax

Significant components of deferred income taxes were as follows:

	September 30,
	2012			2011
Deferred tax assets:
Employee benefits	$	4,035		$	3,246
Inventory		2,930			2,886
Bad debt reserve		1,708			387
Share-based compensation expense		12,659			12,184
Net operating losses		2,292			768
Other		2,656			1,558
Valuation allowance		(1,378	)		-
Total deferred tax assets	$	24,902		$	21,029

Deferred tax liabilities:
Translation adjustment	$	7,966		$	10,576
Depreciation and amortization		3,776			1,568
Unremitted foreign earnings		1,810			3,647
Other		645			127
Total deferred tax liabilities	$	14,197		$	15,918

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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