Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Components of Income Tax Provision (Benefit)

The components of the income tax benefit, excluding amounts related to the discontinued operations, for the fiscal years ended September 30, 2014, 2013 and 2012 are as follows (in thousands):



	Year Ended September 30,
	2014			2013			2012
Current income tax provision (benefit):
Federal	$	15		$	15		$	15
State	177			70			213
Foreign	1,417			681			(1,374		)
Total current income tax provision (benefit)	1,609			766			(1,146		)
Deferred income tax benefit:
Federal	(2,276		)	(5,245		)	(121,203		)
State	(35		)	(183		)	(439		)
Foreign	(1,278		)	(323		)	(3,413		)
Total deferred income tax benefit	(3,589		)	(5,751		)	(125,055		)
Income tax benefit	$	(1,980	)	$	(4,985	)	$	(126,201	)

Components of Income Before Income Taxes and Equity in Earnings of Joint Ventures

The components of income (loss) before income taxes and equity in earnings of equity method investments for the fiscal years ended September 30, 2014, 2013 and 2012 are as follows (in thousands):



	Year Ended September 30,
	2014			2013			2012
Domestic	$	(7,338	)	$	(14,747	)	$	(5,715	)
Foreign	5,643			206			9,216
	$	(1,695	)	$	(14,541	)	$	3,501

Differences between Income Tax Provision (benefit) and Income Taxes Computed using Applicable U.S. Statutory Federal Tax Rate

The differences between the income tax benefit and income taxes computed using the applicable U.S. statutory federal tax rate for the fiscal years ended September 30, 2014, 2013 and 2012 are as follows (in thousands):



	Year Ended September 30,
	2014			2013			2012
Income tax provision (benefit) computed at federal statutory rate	$	(217	)	$	(4,257	)	$	1,957
State income taxes, net of federal benefit	(12		)	(101		)	112
Foreign income taxed at different rates	(596		)	493			(832		)
Dividends	(1,373		)	115			956
Change in deferred tax asset valuation allowance	453			523			(125,479		)
Reduction in uncertain tax positions	(1,236		)	(1,022		)	(3,732		)
Nondeductible compensation	1,064			474			1,339
Tax credits	(704		)	(2,002		)	(1,195		)
Travel and entertainment	220			124			139
Merger costs	187			251			—
Other	234			417			534
Income tax benefit	$	(1,980	)	$	(4,985	)	$	(126,201	)

Significant Components of Net Deferred Tax Assets and Liabilities

The significant components of the net deferred tax assets and liabilities as of September 30, 2014 and 2013 are as follows (in thousands):



	September 30,
	2014			2013
Accruals and reserves not currently deductible	$	12,456		$	11,050
Federal, state and foreign tax credits	20,434			20,084
Other assets	3,523			1,859
Net operating loss carryforwards	67,380			101,717
Inventory reserves and valuation	9,956			9,052
Deferred tax assets	113,749			143,762
Depreciation and intangible amortization	12,198			12,208
Deferred tax liabilities	12,198			12,208
Valuation allowance	(18,354		)	(16,509		)
Net deferred tax asset	$	83,197		$	115,045

Reconciliation of Beginning and Ending Amount of Consolidated Liability for Unrecognized Income Tax Benefits

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the fiscal years ended September 30, 2014, 2013 and 2012 is as follows (in thousands):



	Unrecognized Tax Benefit			Interest and Penalties			Total
Balance at October 1, 2011	$	9,011		$	1,989		$	11,000
Additions for tax positions of prior years	242			247			489
Reductions from lapses in statutes of limitations	(3,125		)	(607		)	(3,732		)
Foreign exchange rate adjustment	(167		)	15			(152		)
Balance at September 30, 2012	5,961			1,644			7,605
Additions for tax positions of prior years	—			228			228
Additions for tax positions related to acquired entities	116			—			116
Reductions from lapses in statutes of limitations	(944		)	(78		)	(1,022		)
Foreign exchange rate adjustment	14			—			14
Balance at September 30, 2013	5,147			1,794			6,941
Additions for tax positions of prior years	—			286			286
Reductions from lapses in statutes of limitations	(861		)	(375		)	(1,236		)
Foreign exchange rate adjustment	(24		)	—			(24		)
Balance at September 30, 2014	$	4,262		$	1,705		$	5,967

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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