Income Taxes (Tables)

12 Months Ended

Sep. 30, 2015

Schedule of Components of Income Tax Expense (Benefit)

Our benefit from income taxes from continuing operations consists of the following for the periods presented:



	Fiscal Year Ended September 30,
(In thousands)	2015			2014			2013
Current federal	$	(64	)	$	(44,789	)	$	(4,409	)
Current state	520			322			(394		)
Deferred federal ^(a)	(314,651		)	2,385			1,476
Deferred state ^(a)	(10,374		)	285			(162		)
Total	$	(324,569	)	$	(41,797	)	$	(3,489	)

^(a) Benefit due to release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.”

Schedule of Effective Income Tax Rate Reconciliation

The benefit from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:



	Fiscal Year Ended September 30,
(In thousands)	2015			2014			2013
Income tax computed at statutory rate	$	7,711		$	(2,406	)	$	(12,479	)
State income taxes, net of federal benefit	2,485			(172		)	(684		)
Decrease in valuation allowance - IRS Settlement	—			(26,846		)	—
(Decrease)/Increase in valuation allowance - other ^(a)	(334,605		)	3,023			11,729
Changes for uncertain tax positions	42			(14,276		)	(1,909		)
IRS interest refund	—			(1,714		)	—
Other, net	(202		)	594			(146		)
Total	$	(324,569	)	$	(41,797	)	$	(3,489	)

^(a)Amount includes $335.2 million release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.”

Schedule of Deferred Tax Assets and Liabilities

Considering the limitation imposed by Section 382, the table below depicts the classifications of our deferred tax assets as of September 30, 2015:



(In thousands)	September 30, 2015
Deferred tax assets:
Subject to annual limitation	$	93,741
Generally not subject to annual limitation	320,230
Total deferred tax assets	413,971
Deferred tax liabilities	(30,939		)
Net deferred tax assets before valuation allowance	383,032
Valuation allowance	(57,659		)
Net deferred tax assets	$	325,373

The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2015 and September 30, 2014:



(In thousands)	September 30, 2015			September 30, 2014
Deferred tax assets:
Warranty and other reserves	$	14,913		$	11,587
Incentive compensation	10,780			18,993
Property, equipment and other assets	2,866			2,750
Federal and state tax carryforwards	292,346			357,146
Inventory adjustments	87,335			95,237
Uncertain tax positions	1,917			1,911
Other	3,814			3,923
Total deferred tax assets	413,971			491,547
Deferred tax liabilities:
Deferred revenues	(30,939		)	(43,496		)
Total deferred tax liabilities	(30,939		)	(43,496		)
Net deferred tax assets before valuation allowance	383,032			448,051
Valuation allowance	(57,659		)	(445,228		)
Net deferred tax assets	$	325,373		$	2,823

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of our unrecognized tax benefits follows for the beginning and end of each period presented:



	Fiscal Year Ended September 30,
(In thousands)	2015			2014			2013
Balance at beginning of year	$	4,616		$	17,464		$	19,630
Additions for (reductions in) tax positions related to current year	251			150			(1,620		)
Additions for tax positions related to prior years	—			1,365			—
Reductions for tax positions of prior years	(10		)	(14,201		)	—
Lapse of statute of limitations	(136		)	(162		)	(546		)
Balance at end of year	$	4,721		$	4,616		$	17,464