Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.10.0.1
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The income tax (benefit) provision consisted of the following:
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
Federal
$
(2,577
)
 
$
1,542

 
$
18,733

State
1,051

 
628

 
1,829

Foreign
15,533

 
10,459

 
12,482

 
14,007

 
12,629

 
33,044

Deferred:
 
 
 
 
 
Federal
(24,094
)
 
11,887

 
(3,066
)
State
1,315

 
905

 
(2,412
)
Foreign
(346
)
 
(3,067
)
 
1,507

 
(23,125
)
 
9,725

 
(3,971
)
Total
$
(9,118
)
 
$
22,354

 
$
29,073

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:
 
2018
 
2017
 
2016
Federal statutory tax rate
24.5
 %
 
35.0
 %
 
35.0
 %
Effect of state income taxes, net of federal deduction
2.2
 %
 
1.4
 %
 
(0.6
)%
Foreign taxes greater (less) than federal statutory rate
1.4
 %
 
(7.2
)%
 
(3.5
)%
Share-based compensation
(0.6
)%
 
(1.2
)%
 
 %
U.S. manufacturing incentive
(1.3
)%
 
(1.8
)%
 
(0.9
)%
Tax credits
(2.7
)%
 
(2.6
)%
 
0.9
 %
Tax deductible basis difference
(1.5
)%
 
 %
 
 %
Transition tax
9.0
 %
 
 %
 
 %
U.S. statutory tax rate change on temporary differences
(38.7
)%
 
 %
 
 %
Other
(1.6
)%
 
(0.4
)%
 
(0.4
)%
Effective tax rate
(9.3
)%
 
23.2
 %
 
30.5
 %
Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities at September 30, 2018 and 2017 are as follows:
 
2018
 
2017
Deferred tax assets:
 
 
 
Pension and postretirement benefits
$
24,597

 
$
45,654

Accruals and reserves not currently deductible
9,596

 
20,579

Income tax credit carryforward
3,216

 
3,313

Operating and capital loss carryforwards
20,807

 
23,610

Stock options
5,157

 
8,614

Other
3,963

 
2,782

Total deferred tax assets
67,336

 
104,552

Valuation allowances
(14,137
)
 
(20,866
)
Net deferred tax assets
53,199

 
83,686

 
 
 
 
Deferred tax liabilities:
 

 
 

Depreciation
(16,156
)
 
(4,763
)
Unrealized gains and losses
(8,637
)
 
(10,446
)
Goodwill and intangible assets
(147,571
)
 
(203,957
)
Other
(517
)
 
(1,494
)
 
(172,881
)
 
(220,660
)
 
 
 
 
Net deferred tax liability
$
(119,682
)
 
$
(136,974
)
Changes in Gross Unrecognized Tax Benefits
Changes in the total amount of gross unrecognized tax benefits (excluding penalties and interest) are as follows:

 
2018
 
2017
 
2016
Balance, beginning of year
$
7,968

 
$
13,820

 
$
4,086

Increases for tax positions of prior years
7,886

 
839

 
5,762

Decreases for tax positions of prior years

 
(5,890
)
 
(166
)
Increases based on tax positions related to the current year
882

 
378

 
5,456

Decreases due to lapse of statute of limitation
(1,909
)
 
(1,179
)
 
(1,318
)
Balance, end of year
$
14,827

 
$
7,968

 
$
13,820

Summary of Income Tax Contingencies
As of September 30, 2018, the tax years that remain subject to examination by major jurisdiction generally are:
United States - Federal
2015 and forward
United States - State
2014 and forward
Canada
2014 and forward
Germany
2015 and forward
United Kingdom
2017 and forward
Australia
2014 and forward
Singapore
2013 and forward