Income Tax Expense (Tables)

12 Months Ended

Sep. 30, 2023

Income Tax Expense

Schedule of the components of income from continuing operations before income taxes

(Dollars in thousands)	2023		2022	2021
United States	$	98,983	90,674	70,214
Foreign		19,964	15,761	10,457
Total income before income taxes	$	118,947	106,435	80,671

Schedule of the principal components of income tax expense (benefit) from continuing operations

(Dollars in thousands)	2023		2022	2021
Federal:
Current	$	24,192	7,248	14,807
Deferred		(5,816)	9,752	(1,598)
State and local:
Current		3,563	1,635	2,257
Deferred		(1,038)	1,774	(786)
Foreign:
Current		5,694	4,645	2,922
Deferred		(193)	(939)	(427)
Total	$	26,402	24,115	17,175

Schedule of the actual income tax expense from continuing operations

	2023		2022		2021
Federal corporate statutory rate	21.0	%	21.0	%	21.0	%
State and local, net of Federal benefits	2.1		2.9		1.9
Impact of foreign operations	0.3		(0.3)		(0.4)
Federal research credit	(1.1)		(0.3)		(0.9)
Executive compensation	0.9		0.5		0.9
Valuation allowance	0.3		(0.3)		—
U.S. tax on GILTI	1.2		1.8		1.0
GILTI foreign tax credits	(0.9)		(1.5)		(0.6)
FDII deduction	(1.6)		(0.9)		(1.7)
Other, net	—		(0.2)		0.1
Effective income tax rate	22.2	%	22.7	%	21.3	%

Schedule of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

(Dollars in thousands)	2023		2022
Deferred tax assets:
Inventories	$	5,457	4,990
Pension and other postretirement benefits		658	664
Capitalized research and development expenditures		4,114	—
Lease liabilities		9,822	7,073
Net operating and capital loss carryforwards — domestic		553	575
Net operating loss carryforward — foreign		3,714	3,396
Other compensation-related costs and other cost accruals		8,691	9,093
State credit carryforward		2,249	1,676
Foreign credit carryforward		—	203
Total deferred tax assets		35,258	27,670
Deferred tax liabilities:
ROU assets		(9,822)	(7,073)
Goodwill		(13,313)	(11,691)
Acquisition intangible assets		(61,187)	(62,051)
Depreciation, software amortization		(21,772)	(24,503)
Net deferred tax liabilities before valuation allowance		(70,836)	(77,648)
Less valuation allowance		(1,772)	(1,208)
Net deferred tax liabilities	$	(72,608)	(78,856)