Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Schedule of components of income tax expense (benefit)

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



	Fiscal Year Ended September 30,
(In thousands)	2016		2015			2014
Current federal	$	—	$	(64	)	$	(44,789	)
Current state	595		520			322
Deferred federal ^(a)	5,574		(314,651		)	2,385
Deferred state ^{(a) (b)}	10,329		(10,374		)	285
Total	$	16,498	$	(324,569	)	$	(41,797	)

^(a) Fiscal 2015 benefit is due to release of a substantial portion of the valuation allowance on our deferred tax assets; refer to discussion below titled “Valuation Allowance.”

^(b) Fiscal 2016 expense includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.”

Schedule of effective income tax rate reconciliation

The expense (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)	2016			2015			2014
Income tax computed at statutory rate	$	7,596		$	7,711		$	(2,406	)
State income taxes, net of federal benefit	4,974			2,485			(172		)
Decrease in valuation allowance - IRS Settlement	—			—			(26,846		)
Increase (decrease) in valuation allowance - other ^{(a) (b)}	6,457			(334,605		)	3,023
Changes for uncertain tax positions	(40		)	42			(14,276		)
IRS interest refund	—			—			(1,714		)
State rate change	(678		)	—			—
Tax credits	(2,134		)	—			—
Other, net	323			(202		)	594
Total	$	16,498		$	(324,569	)	$	(41,797	)

^(a)For fiscal 2015, 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.”

^(b)For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.”

Schedule of deferred tax assets and liabilities

The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2016 and September 30, 2015:



(In thousands)	September 30, 2016			September 30, 2015
Deferred tax assets:
Federal and state tax carryforwards	$	298,426		$	292,346
Inventory adjustments	62,985			87,335
Warranty and other reserves	16,943			14,913
Incentive compensation	15,390			10,780
Property, equipment and other assets	2,896			2,866
Uncertain tax positions	1,721			1,917
Other	809			3,814
Total deferred tax assets	399,170			413,971
Deferred tax liabilities:
Deferred revenues	(22,950		)	(30,939		)
Total deferred tax liabilities	(22,950		)	(30,939		)
Net deferred tax assets before valuation allowance	376,220			383,032
Valuation allowance ^(a)	(66,265		)	(57,659		)
Net deferred tax assets	$	309,955		$	325,373

^(a) For fiscal 2016, amount includes $8.6 million of additional valuation allowance on our state deferred tax assets due to a number of changes to the legal forms of our operating entities; refer to discussion below titled “Valuation Allowance.”

Schedule of unrecognized tax benefits roll forward

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



	Fiscal Year Ended September 30,
(In thousands)	2016			2015			2014
Balance at beginning of year	$	4,721		$	4,616		$	17,464
(Reductions in) additions for tax positions related to current year	(180		)	251			150
Additions for tax positions related to prior years	—			—			1,365
Reductions in tax positions of prior years	—			(10		)	(14,201		)
Lapse of statute of limitations	—			(136		)	(162		)
Balance at end of year	$	4,541		$	4,721		$	4,616