Income Taxes

12 Months Ended

Sep. 30, 2012

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

The components of income before income tax provision are as follows:

	Years Ended September 30,
	2012		2011
U.S	$	8,419	$	10,388
Non-U.S		981		850
Income before income tax provision	$	9,400	$	11,238

The income tax provision consists of the following:

	Years Ended September 30,
	2012			2011
Current income tax provision:
U.S. federal	$	2,530		$	2,486
U.S. state and local		465			463
Non-U.S		229			162
Total current tax provision		3,224			3,111
Deferred income tax provision (benefit):
U.S. federal		(396	)		627
U.S. state and local		(40	)		(62	)
Non-U.S		64			113
Total deferred tax provision (benefit)		(372	)		678
Income tax provision	$	2,852		$	3,789

The income tax provision differs from amounts currently payable or refundable due to certain items reported for financial statement purposes in periods that differ from those in which they are reported for tax purposes. The income tax provision in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows:

	Years Ended September 30,
	2012			2011
Income before income tax provision	$	9,400		$	11,238
Less-U.S. state and local income tax provision		465			401
Income before U.S. and non-U.S. federal income tax provision	$	8,935		$	10,837
Income tax provision at U.S. federal statutory rates	$	3,038		$	3,693
Tax effect of:
Domestic production activities deduction		(278	)		(275	)
Undistributed earnings of non-U.S. subsidiaries		(91	)		132
State and local income taxes		425			401
Federal tax credits		(330	)		(289	)
Other		88			127
Income tax provision	$	2,852		$	3,789

Deferred tax assets and liabilities at September 30 consist of the following:

	2012			2011
Deferred tax assets:
Net non-U.S. operating loss carryforwards	$	592		$	592
Employee benefits		3,282			2,910
Inventory reserves		664			641
Asset impairment reserve		398			435
Allowance for doubtful accounts		154			190
Foreign tax credits		3,021			3,221
Other		43			149
Total deferred tax assets		8,154			8,138
Deferred tax liabilities:
Depreciation		(2,954	)		(3,336	)
Unremitted foreign earnings		(4,454	)		(5,083	)
Other		(248	)		0
Total deferred tax liabilities		(7,656	)		(8,419	)
Net deferred tax assets (liabilities)		498			(281	)
Valuation allowance		(579	)		(452	)
Net deferred tax liabilities	$	(81	)	$	(733	)

At September 30, 2012, the Company has a non-U.S. tax loss carryforward of approximately $5,458, which relates to the Company’s Irish subsidiary that ceased operations in 2007. A valuation allowance has been recorded against the deferred tax asset related to this non-U.S. tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumed operations. The non-U.S. tax loss carryforward does not expire.

The Company recognized a $127 increase in the valuation allowance against its net deferred tax assets in fiscal years 2012 and a $12 reduction in the valuation allowance against its net deferred tax assets in fiscal 2011.

The Company reported liabilities for uncertain tax positions, which includes any related interest and penalties, in fiscal 2012 and 2011 of $120 and $96, respectively. During fiscal 2012, the Company recognized a nominal amount for interest and no amount for penalties. Based on the statute of limitations for specific jurisdictions, the related unrecognized tax benefit for positions previously taken may change in the next 12 months by approximately $3, which would be recorded through income tax expense. The Company classifies interest and penalties on uncertain tax positions as income tax expense. A summary of activity related to the Company’s uncertain tax position is as follows:

	2012			2011
Balance at beginning of year	$	96		$	63
Increase due to tax positions taken in current year		55			46
Increase due to tax positions taken in prior years		1			14
Lapse of statute of limitations		(32	)		(27	)
Balance at end of year	$	120		$	96

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states, local and non-U.S. jurisdictions. The Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations for the years prior to fiscal year 2006.