Income Tax Expense (Tables)

12 Months Ended

Sep. 30, 2016

Total income tax expense (benefit) for 2016, 2015 and 2014 was allocated to income tax expense as follows:

(Dollars in thousands)	2016		2015		2014
Income tax expense from Continuing Operations	$	22,538		19,785		19,594
Income tax expense (benefit) from Discontinued Operations		–		390		(6,034)
Total income tax expense	$	22,538		20,175		13,560

Components Of Income From Continuing Operations Before Income Taxes

The components of income from continuing operations before income taxes for 2016, 2015 and 2014 consisted of the following:

(Dollars in thousands)	2016		2015		2014
United States	$	62,353		56,661		56,196
Foreign		6,067		4,860		6,011
Total income before income taxes	$	68,420		61,521		62,207

Principal Components Of Income Tax Expense (Benefit) From Continuing Operations

The principal components of income tax expense (benefit) from continuing operations for 2016, 2015 and 2014 consist of:

(Dollars in thousands)	2016		2015		2014
Federal:
Current	$	19,236		11,906		18,756
Deferred		(909)		5,406		(2,442)
State and local:
Current		1,674		867		1,397
Deferred		(222)		16		(245)
Foreign:
Current		1,899		1,525		2,044
Deferred		860		65		84
Total	$	22,538		19,785		19,594

Schedule Of Actual Income Tax Expense (Benefit) From Continuing Operations

The actual income tax expense (benefit) from continuing operations for 2016, 2015 and 2014 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows:

	2016			2015			2014
Federal corporate statutory rate		35.0	%		35.0	%		35.0	%
State and local, net of Federal benefits		2.0			1.2			2.0
Foreign		(1.0)			(1.5)			(1.7)
Research credit		(2.5)			(1.8)			(1.0)
Domestic production deduction		(2.8)			(2.6)			(2.9)
Change in uncertain tax positions		–			(0.2)			(2.9)
Executive compensation		0.9			0.9			1.3
Valuation allowance		1.8			1.0			1.3
Other, net		(0.5)			0.2			0.4
Effective income tax rate		32.9	%		32.2	%		31.5	%

Tax Effects Of Temporary Differences That Give Rise To Significant Portions Of The Deferred Tax Assets And Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2016 and 2015 are presented below:

(Dollars in thousands)	2016		2015
Deferred tax assets:
Inventories	$	7,553		6,336
Pension and other postretirement benefits		13,978		11,663
Net operating loss carryforward — domestic		372		520
Net operating loss carryforward — foreign		4,991		4,135
Other compensation-related costs and other cost accruals		13,678		11,785
State credit carryforward		1,944		1,704
Total deferred tax assets		42,516		36,143

Deferred tax liabilities:
Goodwill		(15,528)		(14,829)
Acquisition assets		(69,934)		(57,415)
Depreciation, software amortization		(20,285)		(18,681)
Net deferred tax liabilities before valuation allowance		(63,231)		(54,782)
Less valuation allowance		(5,711)		(4,129)
Net deferred tax liabilities	$	(68,942)		(58,911)