Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

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)	2017		2016		2015
Current federal	$	—	$	—	$	(64	)
Current state	859		595		520
Deferred federal ^(a)	1,625		5,574		(314,651		)
Deferred state ^{(a) (b)}	212		10,329		(10,374		)
Total	$	2,696	$	16,498	$	(324,569	)

^(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)	2017			2016			2015
Income tax computed at statutory rate	$	12,052		$	7,596		$	7,711
State income taxes, net of federal benefit	1,287			4,974			2,485
(Decrease) increase in valuation allowance - other ^{(a) (b) (c)}	(3,482		)	6,457			(334,605		)
Changes for uncertain tax positions	(685		)	(40		)	42
Stock based compensation	741			—			—
State rate change	—			(678		)	—
Tax credits	(7,460		)	(2,134		)	—
Other, net	243			323			(202		)
Total	$	2,696		$	16,498		$	(324,569	)

^(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, 2017 and September 30, 2016:



(In thousands)	September 30, 2017			September 30, 2016
Deferred tax assets:
Federal and state tax carryforwards	$	293,298		$	298,426
Inventory adjustments	59,507			62,985
Incentive compensation	19,043			15,390
Warranty and other reserves	6,140			16,943
Property, equipment and other assets	3,247			2,896
Other	1,785			809
Uncertain tax positions	1,332			1,721
Total deferred tax assets	384,352			399,170
Deferred tax liabilities:
Deferred revenues	(11,297		)	(22,950		)
Total deferred tax liabilities	(11,297		)	(22,950		)
Net deferred tax assets before valuation allowance	373,055			376,220
Valuation allowance ^(a)	(65,159		)	(66,265		)
Net deferred tax assets	$	307,896		$	309,955

^(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)	2017			2016			2015
Balance at beginning of year	$	4,541		$	4,721		$	4,615
Additions for (reductions in) tax positions related to current year	61			(180		)	252
Additions for tax positions related to prior years	2,611			—			—
Reductions in tax positions of prior years	(2,273		)	—			(10		)
Lapse of statute of limitations	(1,136		)	—			(136		)
Balance at end of year	$	3,804		$	4,541		$	4,721