Income Tax Expense (Tables)

12 Months Ended

Sep. 30, 2021

Income Tax Expense

Components Of Income From Continuing Operations Before Income Taxes

We allocated total income tax expense (benefit) for the years ended September 30, 2021, 2020 and 2019 to income tax expense as follows:

(Dollars in thousands)	2021		2020	2019
Income tax expense from continuing operations	$	17,175	13,510	20,388
Income tax expense from discontinued operations		—	23,501	789
Total income tax expense (benefit)	$	17,175	37,011	21,177

The components of income from continuing operations before income taxes for 2021, 2020 and 2019 consisted of the following:

(Dollars in thousands)	2021		2020	2019
United States	$	70,214	23,951	87,150
Foreign		10,457	12,455	10,727
Total income before income taxes	$	80,671	36,406	97,877

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

The principal components of income tax expense (benefit) from continuing operations for 2021, 2020 and 2019 consist of:

(Dollars in thousands)	2021		2020	2019
Federal:
Current	$	14,807	10,495	13,888
Deferred		(1,598)	1,311	250
State and local:
Current		2,257	1,984	3,039
Deferred		(786)	(932)	98
Foreign:
Current		2,922	2,875	2,439
Deferred		(427)	(2,223)	674
Total	$	17,175	13,510	20,388

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

The actual income tax expense (benefit) from continuing operations for 2021, 2020 and 2019 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows:

	2021		2020		2019
Federal corporate statutory rate	21.0	%	21.0	%	21.0	%
State and local, net of Federal benefits	1.9		2.3		3.2
Foreign	(0.4)		1.3		0.6
Research credit	(0.9)		(3.7)		(0.8)
Change in uncertain tax positions	—		—		(0.1)
Executive compensation	0.9		1.6		0.3
Valuation allowance	—		(6.8)		(2.4)
GILTI and FDII	(1.3)		(2.1)		(0.6)
Tax reform – impact on U.S. deferred tax assets and liabilities	—		—		(0.3)
Tax reform – transition tax	—		—		(0.1)
Pension plan termination charge	—		23.4		—
Other, net	0.1		0.1		—
Effective income tax rate	21.3	%	37.1	%	20.8	%

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, 2021 and 2020 are presented below:

(Dollars in thousands)	2021		2020
Deferred tax assets:
Inventories	$	4,267	5,007
Pension and other postretirement benefits		859	842
Timing differences related to revenue recognition		9,365	4,936
Lease liabilities		7,614	5,220
Net operating and capital loss carryforwards — domestic		542	563
Net operating loss carryforward — foreign		4,279	3,678
Other compensation-related costs and other cost accruals		8,174	8,953
State credit carryforward		2,639	2,366
Foreign credit carryforward		192	—
Total deferred tax assets		37,931	31,565
Deferred tax liabilities:
ROU assets		(7,614)	(5,220)
Goodwill		(13,746)	(7,878)
Acquisition intangible assets		(62,052)	(52,682)
Depreciation, software amortization		(22,418)	(21,283)
Net deferred tax liabilities before valuation allowance		(67,899)	(55,498)
Less valuation allowance		(2,011)	(1,932)
Net deferred tax liabilities	$	(69,910)	(57,430)