Income Tax Expense (Tables)

12 Months Ended

Sep. 30, 2017

Total income tax expense (benefit) for 2017, 2016 and 2015 was allocated to income tax expense as follows:

(Dollars in thousands)	2017		2016		2015
Income tax expense from Continuing Operations	$	26,450		22,538		19,785
Income tax expense from Discontinued Operations		–		–		390
Total income tax expense	$	26,450		22,538		20,175

Components Of Income From Continuing Operations Before Income Taxes

The components of income from continuing operations before income taxes for 2017, 2016 and 2015 consisted of the following:

(Dollars in thousands)	2017		2016		2015
United States	$	72,353		62,353		56,661
Foreign		7,800		6,067		4,860
Total income before income taxes	$	80,153		68,420		61,521

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

The principal components of income tax expense (benefit) from continuing operations for 2017, 2016 and 2015 consist of:

(Dollars in thousands)	2017		2016		2015
Federal:
Current	$	21,448		19,236		11,906
Deferred		628		(909)		5,406
State and local:
Current		1,795		1,674		867
Deferred		(49)		(222)		16
Foreign:
Current		4,450		1,899		1,525
Deferred		(1,822)		860		65
Total	$	26,450		22,538		19,785

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

The actual income tax expense (benefit) from continuing operations for 2017, 2016 and 2015 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows:

	2017			2016			2015
Federal corporate statutory rate		35.0	%		35.0	%		35.0	%
State and local, net of Federal benefits		2.4			2.0			1.2
Foreign		(0.1)			(1.0)			(1.5)
Research credit		(1.1)			(2.5)			(1.8)
Domestic production deduction		(2.7)			(2.8)			(2.6)
Change in uncertain tax positions		–			–			(0.2)
Executive compensation		(0.1)			0.9			0.9
Valuation allowance		(0.3)			1.8			1.0
Other, net		(0.1)			(0.5)			0.2
Effective income tax rate		33.0	%		32.9	%		32.2	%

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, 2017 and 2016 are presented below:

(Dollars in thousands)	2017		2016
Deferred tax assets:
Inventories	$	9,639		7,553
Pension and other postretirement benefits		11,345		13,978
Net operating and capital loss carryforwards — domestic		501		372
Net operating loss carryforward — foreign		4,486		4,991
Other compensation-related costs and other cost accruals		12,104		13,678
State credit carryforward		2,098		1,944
Total deferred tax assets		40,173		42,516

Deferred tax liabilities:
Goodwill		(4,874)		(15,528)
Acquisition assets		(91,752)		(69,934)
Depreciation, software amortization		(24,092)		(20,285)
Net deferred tax liabilities before valuation allowance		(80,545)		(63,231)
Less valuation allowance		(4,440)		(5,711)
Net deferred tax liabilities	$	(84,985)		(68,942)