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Income Taxes
 12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
(Loss) income before income taxes was as follows:
Year Ended September 30,
202120202019
Domestic$(129,814)$94,002 $(45,364)
Foreign75,020 79,345 108,470 
Total$(54,794)$173,347 $63,106 
Taxes on income consisted of the following:
Year Ended September 30,
202120202019
U.S. federal and state:
Current$29,712 $20,733 $23,461 
Deferred(39,609)(7,048)(23,182)
Total(9,897)13,685 279 
Foreign:
Current25,417 21,053 27,580 
Deferred(1,737)(4,219)(3,968)
Total23,680 16,834 23,612 
Total U.S. and foreign$13,783 $30,519 $23,891 
The Provision for income taxes at our effective tax rate differed from the statutory rate as follows:
Year Ended September 30,
202120202019
Federal statutory rate21.0 %21.0 %21.0 %
U.S. benefits from research and experimentation activities3.4 (1.5)(2.9)
State taxes, net of federal effect1.2 1.1 (4.7)
Foreign income at other than U.S. rates(11.6)1.7 10.3 
Excess compensation(3.3)0.4 6.4 
Share-based compensation7.4 (2.2)(7.2)
U.S. tax reform— — 14.1 
Global Intangible Low Taxed Income ("GILTI")1.5 — 3.1 
Foreign derived intangible income14.4 (3.4)(3.9)
Change in reserve positions(11.1)1.9 0.3 
Goodwill impairment(47.5)— — 
Other, net(0.6)(1.4)1.4 
Provision for income taxes(25.2)%17.6 %37.9 %
The negative effective tax rate during fiscal 2021 in relation to the loss before income taxes of $54,794 was primarily attributable to the unfavorable impact of goodwill impairment charges related to PIM and wood treatment, partially offset by a tax benefit related to share-based compensation and foreign derived intangible income.
The decrease in the effective tax rate during fiscal 2020 was primarily attributable to the absence of a discrete charge recorded in fiscal 2019 related to the final regulations issued under the Tax Cuts and Jobs Act and the absence of unfavorable tax treatment of certain non-deductible costs related to the KMG Acquisition. Additionally, the tax rate was favorably impacted by the final tax regulations issued in July 2020, which provided for a high-tax exception for those jurisdictions subject to the GILTI tax, for which the Company qualified.
The following table presents the changes in the balance of gross unrecognized tax benefits during the last three fiscal years:
Balance September 30, 2018$1,434 
Additions for tax positions relating to the current fiscal year271 
Additions for tax positions relating to prior fiscal years9,839 
Balance September 30, 201911,544 
Additions for tax positions relating to the current fiscal year4,691 
Additions for tax positions relating to prior fiscal years140 
Reduction for tax positions relating to prior fiscal years(1,337)
Balance September 30, 202015,038 
Additions for tax positions relating to the current fiscal year5,288 
Additions for tax positions relating to prior fiscal years2,162 
Reduction for tax positions relating to prior fiscal years(113)
Balance September 30, 2021$22,375 
The entire balance of unrecognized tax benefits shown above as of September 30, 2021 and 2020, would affect our effective tax rate if recognized. Additions for tax positions of $5,288 recorded in the current fiscal year are mainly due to liabilities related to mix of jurisdictional earnings from intercompany transactions. Interest accrued and penalties charged to expense in fiscal years 2021, 2020 and 2019 was immaterial.
At September 30, 2021, the tax periods open to examination by the U.S. federal, state and local governments include fiscal years 2015 through 2021, and the tax periods open to examination by foreign jurisdictions include fiscal years 2016 through 2021. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.
Significant components of net deferred tax assets and liabilities were as follows:
September 30,
20212020
Deferred tax assets:
Employee benefits$7,877 $8,920 
Inventory6,469 4,657 
Accrued expenses3,121 2,615 
Share-based compensation expense5,686 5,709 
Credit and other carryforwards9,647 5,803 
Lease obligations6,858 — 
Interest rate swap3,732 8,506 
Other579 1,238 
Valuation allowance(2,880)(2,948)
Total deferred tax assets$41,089 $34,500 
Deferred tax liabilities:
Depreciation and amortization$94,425 $131,237 
Lease right-of-use assets6,689 — 
Withholding on transition taxes4,696 4,156 
Other3,396 3,606 
Total deferred tax liabilities$109,206 $138,999 
As of September 30, 2021, the Company had foreign and domestic net operating loss carryforwards (“NOLs”) of $28,243, which will expire over the period between fiscal years 2022 and 2041. We have recorded a tax-effected valuation allowance of $2,880 against the deferred tax assets related to certain foreign and U.S. federal and state NOLs, as well as on certain federal tax credit carryforwards. As of September 30, 2021, the Company had a U.S. federal and state tax credit carryforward of $1,325, which will expire beginning in fiscal years 2022 through 2031.