INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2020

Schedule of Income Loss From Continuing Operations Before Taxes

Income taxes have been based on the following components of Income before taxes from continuing operations:



	For the Years Ended September 30,
	2020		2019		2018
Domestic	$	42,634	$	49,723	$	4,942
Non-U.S.	40,123		22,455		28,868
	$	82,757	$	72,178	$	33,810

Schedule of Components of Income Tax Expense (Benefit)

Provision (benefit) for income taxes on income was comprised of the following from continuing operations:



	For the Years Ended September 30,
	2020		2019			2018
Current	$	27,233	$	28,778		$	18,188
Deferred	2,095		(2,222		)	(17,633		)
Total	$	29,328	$	26,556		$	555
U.S. Federal	$	10,978	$	14,160		$	(12,714	)
State and local	7,331		6,187			5,175
Non-U.S.	11,019		6,209			8,094
Total provision	$	29,328	$	26,556		$	555

Schedule of Effective Income Tax Rate Reconciliation

Differences between the effective income tax rate applied to Income and the U.S. Federal income statutory rate from continuing operations were as follows:



	For the Years Ended September 30,
	2020		2019		2018
U.S. Federal income tax provision (benefit) rate	21.0	%	21.0	%	24.5	%
State and local taxes, net of Federal benefit	6.0	%	6.6	%	10.2	%
Non-U.S. taxes - foreign permanent items and taxes	3.3	%	2.0	%	3.6	%
Change in tax contingency reserves	0.1	%	(0.7	)%	(0.6	)%
Impact of federal rate change on deferred tax balances	—	%	—	%	(60.0	)%
Tax Reform-Repatriation of Foreign Earnings and GILTI	—	%	1.0	%	61.6	%
Change in valuation allowance	(1.5	)%	3.3	%	13.4	%
Other non-deductible/non-taxable items, net	1.4	%	3.1	%	(5.2	)%
Non-deductible officer's compensation	4.4	%	5.2	%	6.4	%
Research and U.S. foreign tax credits	1.4	%	(4.7	)%	(39.4	)%
Share based compensation	—	%	0.4	%	(3.8	)%
Other	(0.7	)%	(0.4	)%	(9.1	)%
Effective tax provision (benefit) rate	35.4	%	36.8	%	1.6	%

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to future deferred tax assets and liabilities are as follows:



	At September 30,
	2020			2019
Deferred tax assets:
Bad debt reserves	$	3,980		$	1,980
Inventory reserves	9,371			8,361
Deferred compensation (equity compensation and defined benefit plans)	18,904			16,544
Compensation benefits	5,499			5,186
Insurance reserve	1,918			1,873
Warranty reserve	3,981			2,896
Lease liabilities	43,045			—
Net operating loss	9,618			11,077
Tax credits	7,031			9,373
Capital loss carryback	2,205			2,000
Interest	—			5,250
Other reserves and accruals	6,094			3,738
	111,646			68,278
Valuation allowance	(9,824		)	(10,823		)
Total deferred tax assets	101,822			57,455
Deferred tax liabilities:
Goodwill and intangibles	(44,051		)	(42,477		)
Property, plant and equipment	(48,172		)	(43,996		)
Right-of-use assets	(41,747		)	—
Other	(634		)	(1,096		)
Total deferred tax liabilities	(134,604		)	(87,569		)
Net deferred tax liabilities	$	(32,782	)	$	(30,114	)

Schedule of Components of Net Deferred Tax Asset Liability by Balance Sheet Account

The components of the net deferred tax liability, by balance sheet account, were as follows:



	At September 30,
	2020			2019
Other assets	$	614		$	137
Other liabilities	(34,008		)	(31,141		)
Liabilities of discontinued operations	612			890
Net deferred liability	$	(32,782	)	$	(30,114	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a roll forward of unrecognized tax benefits:



Balance at September 30, 2018	$	4,519
Additions based on tax positions related to the current year	117
Additions based on tax positions related to prior years	(559		)
Lapse of Statutes	(16		)
Balance at September 30, 2019	4,061
Additions based on tax positions related to the current year	125
Additions based on tax positions related to prior years	20
Reductions based on tax positions related to prior years	(3		)
Lapse of Statutes	(23		)
Balance at September 30, 2020	$	4,180