Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.25.3
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes
The income tax provision (benefit) consisted of the following:
  2025 2024 2023
Current:
Federal $ 2,800  $ 2,897  $ 13,967 
State 2,927  1,849  4,381 
Foreign 11,813  10,480  5,052 
  17,540  15,226  23,400 
Deferred:
Federal 11,728  (15,507) (14,466)
State 1,807  (2,372) (1,887)
Foreign 9,605  (7,344) (5,273)
23,140  (25,223) (21,626)
Total $ 40,680  $ (9,997) $ 1,774 
Schedule of Reconciliation of Federal Statutory Tax Rate to Consolidated Effective Tax Rate
The reconciliation of the federal statutory tax rate to the consolidated effective tax rate was as follows:

  2025 2024 2023
Federal statutory tax rate 21.0  % 21.0  % 21.0  %
Effect of state income taxes, net of federal deduction 25.4  % 1.3  % 3.8  %
Foreign statutory taxes compared to federal statutory rate (23.6) % 19.6  % (0.7) %
Share-based compensation 13.8  % (0.7) % 3.6  %
Tax credits (net of withholding taxes) (8.5) % 3.6  % (7.0) %
Goodwill write-down —  % (4.9) % —  %
Nontaxable income (2.0) % 5.0  % (7.5) %
Nondeductible held-for-sale asset write-downs 10.3  % (4.0) % —  %
Change in realizability of foreign deferred tax assets 43.8  % (30.7) % (9.5) %
Sale of SGK Business 157.5  % —  % —  %
Pillar Two top-up tax 5.3  % —  % —  %
Sale of foreign assets 8.6  % —  % —  %
Other
(0.8) % 4.2  % 0.6  %
Effective tax rate 250.8  % 14.4  % 4.3  %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities at September 30, 2025 and 2024 are as follows:
  2025 2024
Deferred tax assets:
Pension and postretirement benefits $ 5,953  $ 6,405 
Accruals and reserves not currently deductible 16,734  16,992 
Income tax credit carryforward 5,671  5,563 
Operating and capital loss carryforwards 91,119  83,234 
Stock options 8,701  8,266 
Research and development capitalization 16,557  18,299 
Operating lease liability 13,369  15,833 
Interest carryforward 15,257  10,796 
Other 9,420  6,078 
Total deferred tax assets 182,781  171,466 
Valuation allowances (66,632) (45,462)
Net deferred tax assets 116,149  126,004 
Deferred tax liabilities:    
Depreciation (21,130) (25,724)
Goodwill and intangible assets (74,471) (95,828)
Revenue recognized over time (32,359) (27,467)
Operating lease right-of-use assets (12,949) (15,282)
Investment in Propelis (24,320) — 
Other (452) (843)
Total deferred tax liabilities (165,681) (165,144)
Net deferred tax liability $ (49,532) $ (39,140)
Schedule of Unrecognized Tax Benefits Roll Forward
Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows:
  2025 2024 2023
Balance, beginning of year $ 4,506  $ 3,779  $ 4,123 
Increases for tax positions of prior years 65  378  100 
Decreases for tax positions of prior years (2,648) —  — 
Increases based on tax positions related to the current year 1,340  1,044  769 
Decreases due to lapse of statute of limitation (291) (695) (1,213)
Balance, end of year $ 2,972  $ 4,506  $ 3,779 
Summary of Income Tax Contingencies
As of September 30, 2025, the tax years that remain subject to examination by major jurisdiction generally are:
United States - Federal 2019, 2020, 2022 and forward
United States - State 2021 and forward
Canada 2021 and forward
Germany 2020 and forward
United Kingdom 2023 and forward
Australia 2021 and forward
Singapore 2021 and forward