INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2012

Income Taxes

Significant components of the provision for income taxes

Significant components of the provision for income taxes are as follows:

	Years ended September 30,
(in thousands)	2012		2011			2010			2009
			(As restated)			(As restated)			(As restated)
Current:
Federal	$	15,190	$	(999	)	$	14,891		$	9,006
State		1,927		810			4,392			3,207
Foreign		19,323		22,740			17,960			16,078
Total current		36,440		22,551			37,243			28,291
Deferred:
Federal		331		9,356			992			3,714
State		328		299			340			591
Foreign		1,085		167			(564	)		420
Total deferred provision		1,743		9,822			768			4,725
Total income tax expense	$	38,183	$	32,373		$	38,011		$	33,016

Significant components of deferred tax assets and liabilities

	September 30,
(in thousands)	2012			2011			2010			2009
				(As restated)			(As restated)			(As restated)
Deferred tax assets:
Accrued employee benefits	$	9,153		$	9,303		$	9,112		$	8,064
Long-term contracts and inventory valuation reductions		9,062			8,215			7,115			7,580
Allowances for loss contingencies		5,339			6,883			6,223			5,316
Deferred compensation		3,756			3,444			3,246			3,306
Book over tax depreciation		471			709			1,373			1,357
Adjustment to pension liability		17,886			15,226			12,925			11,716
California research and development credit carryforward		3,882			2,750			3,484			2,529
Net operating losses		10,909			2,424			1,457			638
Foreign currency mark-to-market		2,192			2,177			1,529			—
Other		395			2,199			513			5,419
Subtotal		63,045			53,330			46,977			45,925
Valuation allowance		(4,205	)		(2,750	)		(3,484	)		(2,529	)
Deferred tax assets		58,840			50,580			43,493			43,396
Deferred tax liabilities:
Amortization of goodwill and intangibles		8,608			12,344			1,964			4,839
Deferred revenue		25,277			14,408			1,761			414
Foreign currency mark-to-market		269			284			673			630
State taxes		146			—			3,421			60
Other		589			1,237			2,096			2,758
Deferred tax liabilities		34,889			28,273			9,915			8,701
Net deferred tax asset	$	23,951		$	22,307		$	33,578		$	34,695

Reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense

	Years ended September 30,
(in thousands)	2012			2011			2010			2009
				(As restated)			(As restated)			(As restated)
Tax at U.S. statutory rate	$	45,601		$	40,697		$	38,536		$	33,656
State income taxes, net of federal tax effect		1,364			1,297			3,042			2,672
Nondeductible expenses		286			893			1,366			107
Change in reserve for uncertain tax positions		(2,909	)		1,504			(832	)		430
Tax effect from foreign dividend		2,773			—			—			3,063
Foreign earnings taxed at less than statutory rate		(7,153	)		(6,415	)		(2,548	)		(3,760	)
R&D credits generated in the current year		(906	)		(2,696	)		(491	)		(3,395	)
Reinstatement of federal research and development credit		—			(1,406	)		—			—
Other		(873	)		(1,501	)		(1,062	)		243
	$	38,183		$	32,373		$	38,011		$	33,016

Net changes in the liability for unrecognized tax benefits

	Years ended September 30,
(in thousands)	2012			2011			2010			2009
				(As restated)			(As restated)			(As restated)
Balance at October 1	$	10,715		$	8,958		$	9,958		$	8,881
Decrease related to tax positions in prior years:
Recognition of benefits from expiration of statutes		(1,227	)		(1,172	)		(1,747	)		(1,555	)
Recognition of benefits from settlement with tax authorities		(1,257	)		—			—			(259	)
Other		(585	)		—			—			—
Tax positions related to the current year		409			2,452			778			3,142
Tax positions related to current year acquisitions		—			484			—			—
Currency translation adjustment		212			(7	)		(31	)		(251	)
Balance at September 30	$	8,267		$	10,715		$	8,958		$	9,958

Components of income before income taxes

Income before income taxes includes the following components (in thousands):

	Years ended September 30,
	2012		2011		2010		2009
			(As restated)		(As restated)		(As restated)
United States	$	38,428	$	33,955	$	59,984	$	38,729
Foreign		91,859		82,322		50,121		57,432
Total	$	130,287	$	116,277	$	110,105	$	96,161