Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.2.0.727
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2014
INCOME TAXES [Abstract]  
Provision for Income Taxes
The provision for income taxes consisted of the following:

   
2014
   
2013
   
2012
 
Current:
           
Federal
 
$
7,371
   
$
15,703
   
$
14,060
 
State
   
3,612
     
3,423
     
2,483
 
Foreign
   
10,427
     
4,804
     
6,437
 
     
21,410
     
23,930
     
22,980
 
Deferred
   
1,395
     
2,244
     
5,375
 
Total
 
$
22,805
   
$
26,174
   
$
28,355
 
                         
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:

   
2014
   
2013
   
2012
 
Federal statutory tax rate
   
35.0
%
   
35.0
%
   
35.0
%
Effect of state income taxes, net of federal deduction
   
3.8
     
2.7
     
2.1
 
Foreign taxes less than federal statutory rate
   
(2.1
)
   
(3.1
)
   
(0.6
)
Other
   
(2.2
)
   
(2.0
)
   
(2.3
)
Effective tax rate
   
34.5
%
   
32.6
%
   
34.2
%
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities at September 30, 2014 and 2013 are as follows:

   
2014
   
2013
 
Deferred tax assets:
       
Pension and postretirement benefits
 
$
34,309
   
$
26,780
 
Accruals and reserves not currently deductible
   
28,090
     
20,939
 
Income tax credit carryforward
   
9,839
     
-
 
Operating and capital loss carryforwards
   
25,419
     
3,733
 
Stock options
   
8,366
     
10,691
 
Other
   
21,089
     
8,034
 
Total deferred tax assets
   
127,112
     
70,177
 
    Valuation allowances
   
(24,540
)
   
(2,234
)
Net deferred tax assets
   
102,572
     
67,943
 
                 
Deferred tax liabilities:
               
Depreciation
   
(7,651
)
   
(3,693
)
Goodwill and intangible assets
   
(183,685
)
   
(67,012
)
Other
   
(18,590
)
   
(1,630
)
     
(209,926
)
   
(72,335
)
                 
Net deferred tax liability
 
$
(107,354
)
 
$
(4,392
)
Changes in Gross Unrecognized Tax Benefits
Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows:

   
2014
   
2013
   
2012
 
Balance, beginning of year
 
$
4,516
   
$
4,501
   
$
4,721
 
Increase from acquisition
   
385
     
-
     
-
 
Increases for tax positions of prior years
   
369
     
-
     
742
 
Decreases for tax positions of prior years
   
(863
)
   
(124
)
   
(74
)
Increases based on tax positions related to the current year
   
623
     
708
     
137
 
Decreases due to settlements with taxing authorities
   
(12
)
   
(250
)
   
(602
)
Decreases due to lapse of statute of limitation
   
(707
)
   
(319
)
   
(423
)
Balance, end of year
 
$
4,311
   
$
4,516
   
$
4,501
 
Summary of Income Tax Contingencies
The Company is currently under examination in several tax jurisdictions and remains subject to examination until the statute of limitation expires for those tax jurisdictions.  As of September 30, 2014, the tax years that remain subject to examination by major jurisdiction generally are:

United States - Federal
2011 and forward
United States - State
2010 and forward
Canada
2009 and forward
Europe
2008 and forward
United Kingdom
2012 and forward
Australia
2010 and forward
Asia
2008 and forward