Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

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

	Fiscal Year Ended September 30,
(In thousands)	2018			2017		2016
Current federal	$	57		$	—	$	—
Current state	512			859		595
Deferred federal (a)	102,082			1,625		5,574
Deferred state (a) (b)	(8,167		)	212		10,329
Total	$	94,484		$	2,696	$	16,498

^(a) Fiscal 2018 federal deferred expense is primarily driven by the remeasurement of our deferred tax asset at the newly enacted 21.0% federal tax rate, partially offset by the release of the remaining valuation allowance on our federal deferred tax assets. Fiscal 2018 state benefit is primarily driven by the release of valuation allowance in certain operating jurisdictions; 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. This additional valuation allowance was for states that did not have a valuation allowance release in 2018. Refer to the discussion below titled “Valuation Allowance” for additional details.

Schedule of effective income tax rate reconciliation

The expense 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)	2018			2017			2016
Income tax computed at statutory rate	$	12,112		$	12,052		$	7,596
State income taxes, net of federal benefit	111			1,287			4,974
Deferred rate change	110,071			—			(678		)
(Decrease) increase in valuation allowance - other (a) (b) (c)	(27,370		)	(3,482		)	6,457
Changes for uncertain tax positions	598			(685		)	(40		)
Stock based compensation	—			741			—
Permanent differences	2,133			496			400
Tax credits	(3,174		)	(7,460		)	(2,134		)
Other, net	3			(253		)	(77		)
Total	$	94,484		$	2,696		$	16,498

^(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.”

^(b) For fiscal 2017, amount includes a $3.5 million release of the valuation allowance on our state deferred tax assets due to changes in our state net operating loss estimates; refer to discussion below titled “Valuation Allowance.”

^(c) For fiscal 2018, amount includes a $27.4 million release of the valuation allowance on our federal and state deferred tax assets; refer to discussion below titled “Valuation Allowance.” Due to our fiscal year end, our fiscal provision was calculated using a blended 24.5% federal tax rate. The increase in permanent differences in fiscal 2018 compared to the prior fiscal year was largely driven by the limits on deductibility for executive compensation for current year incentive awards and anticipated limitations on unvested stock awards due to the enactment of the Tax Cuts and Jobs Act.

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, 2018 and September 30, 2017:

(In thousands)	September 30, 2018			September 30, 2017
Deferred tax assets:
Federal and state tax carryforwards	$	196,702		$	293,298
Inventory adjustments	29,565			59,507
Incentive compensation	11,959			19,043
Warranty and other reserves	6,350			6,140
Property, equipment and other assets	2,123			3,247
Other	734			1,785
Uncertain tax positions	734			1,332
Total deferred tax assets	248,167			384,352
Deferred tax liabilities:
Deferred revenues	—			(11,297		)
Total deferred tax liabilities	—			(11,297		)
Net deferred tax assets before valuation allowance	248,167			373,055
Valuation allowance (a)	(34,212		)	(65,159		)
Net deferred tax assets	$	213,955		$	307,896

^(a) For fiscal 2018, amount includes a $27.4 million release of the valuation allowance on our federal and state deferred tax assets. For fiscal 2017, amount includes a $3.5 million release of the valuation allowance on our state deferred tax assets due to changes in our state operating loss estimates; 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)	2018			2017			2016
Balance at beginning of year	$	3,804		$	4,541		$	4,721
Additions for (reductions in) tax positions related to current year	—			61			(180		)
Additions for tax positions related to prior years	—			2,611			—
Reductions in tax positions of prior years	—			(2,273		)	—
Lapse of statute of limitations	(310		)	(1,136		)	—
Balance at end of year	$	3,494		$	3,804		$	4,541