Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:

	Fiscal Year Ended September 30,
in thousands	2020		2019		2018
Current federal (a)	$	(4,641)	$	(4,935)	$	57
Current state	485		693		512
Deferred federal (b)	20,639		(31,291)		102,082
Deferred state (c)	1,490		(1,684)		(8,167)
Total expense (benefit)	$	17,973	$	(37,217)	$	94,484

(a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Fiscal 2019 federal current benefit is primarily driven by the expected refund of half of our outstanding alternative minimum tax credit that became refundable due to the enactment of the Tax Cuts and Jobs Act. See further discussion below.

(b) 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 as a result of the Tax Cuts and Jobs Act, partially offset by the release of the remaining valuation allowance on our federal deferred tax assets.

(c) Fiscal 2018 state deferred benefit is primarily driven by the release of valuation allowance in certain operating jurisdictions; refer to discussion below titled “Valuation Allowance.”

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	2020		2019		2018
Income tax computed at statutory rate	$	14,971	$	(24,494)	$	12,112
State income taxes, net of federal benefit	1,300		(590)		111
Deferred rate change	260		(88)		110,071
Decrease in valuation allowance - other (a)	—		—		(27,370)
Changes in uncertain tax positions	(2)		(7)		598
Permanent differences	2,177		2,908		2,133
Tax credits	(939)		(14,902)		(3,174)
Other, net	206		(44)		3
Total expense (benefit)	$	17,973	$	(37,217)	$	94,484

(a) For fiscal 2018, amount represents 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 and the enactment of the Tax Cuts and Jobs Act, our fiscal 2018 provision was calculated using a blended 24.5% federal tax rate.

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, 2020 and September 30, 2019:

in thousands	September 30, 2020		September 30, 2019
Deferred tax assets:
Federal and state tax carryforwards	$	192,981	$	208,360
Inventory adjustments	34,971		42,605
Intangible assets	13,993		17,209
Incentive compensation	13,116		9,360
Warranty and other reserves	5,503		4,302
Property, equipment and other assets	2,197		2,255
Uncertain tax positions	723		729
Other	844		623
Total deferred tax assets	264,328		285,443
Valuation allowance	(39,185)		(38,486)
Net deferred tax assets	$	225,143	$	246,957

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	2020		2019		2018
Balance at beginning of year	$	3,473	$	3,494	$	3,804
Additions for tax positions related to current year	—		—		—
Additions for tax positions related to prior years	—		—		—
Reductions in tax positions of prior years	—		—		—
Lapse of statute of limitations	(32)		(21)		(310)
Balance at end of year	$	3,441	$	3,473	$	3,494