INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2014

INCOME TAXES

Components of income (loss) before income taxes

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

Years ended September 30,	2014			2013			2012
	(in thousands)
United States	$	(22,788	)	$	(31,640	)	$	38,692
Foreign	112,199			71,411			99,271
Total	$	89,411		$	39,771		$	137,963

Significant components of the provision for income taxes

Years ended September 30,	2014			2013			2012
	(in thousands)
Current:
Federal	$	(8,049	)	$	8,198		$	15,448
State	918			2,437			1,927
Foreign	25,705			18,581			21,005
Total current	18,574			29,216			38,380
Deferred:
Federal	1,296			(14,182		)	331
State	(1,232		)	(2,720		)	328
Foreign	1,193			2,188			1,293
Total deferred	1,257			(14,714		)	1,952
Provision for income taxes	$	19,831		$	14,502		$	40,332

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

Years ended September 30,	2014			2013			2012
	(in thousands)
Tax expense at U.S. statutory rate	$	31,290		$	13,921		$	48,287
State income taxes, net of federal tax effect	111			120			1,364
Nondeductible expenses	1,319			1,609			286
Change in reserve for tax contingencies	(601		)	(673		)	(2,752		)
Impact of goodwill impairment loss	—			10,046			—
Change in deferred tax asset valuation allowance	921			4,044			—
Tax effect from foreign earnings repatriation	—			—			2,773
Foreign earnings taxed at less than statutory rate	(12,783		)	(7,521		)	(7,847		)
R&D credits generated in the current year	(584		)	(3,202		)	(906		)
Reinstatement of federal research and development credit	—			(1,937		)	—
Manufacturing deduction	—			(1,333		)	(630		)
Other	158			(572		)	(243		)
Provision for income taxes	$	19,831		$	14,502		$	40,332

Significant components of deferred tax assets and liabilities

September 30,	2014			2013
	(in thousands)
Deferred tax assets:
Accrued employee benefits	$	13,944		$	11,642
Long-term contracts and inventory valuation reductions	9,554			14,152
Allowances for loss contingencies	5,121			5,441
Deferred compensation	4,310			4,346
Property, plant and equipment	1,507			1,127
Intangible assets	2,324			477
Retirement benefits	4,729			5,678
State research and development credit carryforward	7,285			4,839
Net operating losses carryforwards	15,662			18,639
Other	585			2,048
Total gross deferred tax assets	65,021			68,389
Deferred tax asset valuation allowance	(14,024		)	(8,801		)
Total deferred tax assets	50,997			59,588
Deferred tax liabilities:
Deferred revenue	(22,507		)	(28,865		)
State taxes	(6		)	(995		)
Other	(1,937		)	(2,052		)
Total deferred tax liabilities	(24,450		)	(31,912		)
Net deferred tax asset	$	26,547		$	27,676

Net changes in the liability for unrecognized tax benefits

Years ended September 30,	2014			2013
	(in thousands)
Balance at October 1	$	8,441		$	9,833
Increase (decrease) related to tax positions in prior years:
Recognition of benefits from expiration of statutes	(973		)	(575		)
Settlements with taxing authorities	(728		)	(2,332		)
Other	(54		)	824
Tax positions related to the current year	743			731
Currency translation adjustment	(123		)	(40		)
Balance at September 30	$	7,306		$	8,441