XML 36 R17.htm IDEA: XBRL DOCUMENT
v3.21.2

INCOME TAXES | 12 Months Ended
--- | ---
Sep. 30, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES |
NOTE 8 INCOME TAXES
Income Tax (Benefit) Provision and Rate The components of the benefit for income taxes are as follows:
| Year Ended September 30,
(in thousands) | 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal | $ | (15,466) |  |  | $ | 15,431 |  |  | $ | 21,745 |
Foreign | 772 |  |  | 1,495 |  |  | 732 |
State | 725 |  |  | 523 |  |  | 3,365 |
| (13,969) |  |  | 17,449 |  |  | 25,842 |
Deferred: |  |  |  |  |
Federal | (81,760) |  |  | (127,096) |  |  | (35,809) |
Foreign | 4,106 |  |  | (12,390) |  |  | 2,804 |
State | (12,098) |  |  | (18,069) |  |  | (11,549) |
| (89,752) |  |  | (157,555) |  |  | (44,554) |
Total benefit | $ | (103,721) |  |  | $ | (140,106) |  |  | $ | (18,712) |
The amounts of domestic and foreign loss before income taxes are as follows:
| Year Ended September 30,
(in thousands) | 2021 |  | 2020 |  | 2019
Domestic | $ | (412,556) |  |  | $ | (458,364) |  |  | $ | (45,118) |
Foreign | (28,624) |  |  | (178,134) |  |  | (6,104) |
| $ | (441,180) |  |  | $ | (636,498) |  |  | $ | (51,222) |
Effective income tax rates as compared to the U.S. Federal income tax rate are as follows:
| Year Ended September 30,
| 2021 |  | 2020 |  | 2019
U.S. Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of foreign taxes | 0.1 |  |  | (0.2) |  |  | (0.6) |
State income taxes, net of federal tax benefit | 2.6 |  |  | 2.8 |  |  | 17.2 |
Other impact of foreign operations | — |  |  | (0.5) |  |  | 0.9 |
Non-deductible meals and entertainment | (0.1) |  |  | (0.2) |  |  | (2.5) |
Equity compensation | (0.8) |  |  | (0.3) |  |  | 2.7 |
Excess officer's compensation | — |  |  | (0.2) |  |  | (1.9) |
Contingent consideration adjustment | — |  |  | — |  |  | 4.5 |
Other | 0.7 |  |  | (0.4) |  |  | (4.8) |
Effective income tax rate | 23.5 | % |  | 22.0 | % |  | 36.5 | %
Effective tax rates differ from the U.S. federal statutory rate of 21.0 percent due to state and foreign income taxes and the tax effect of non-deductible expenditures. Deferred Taxes Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. Recoverability of any tax assets are evaluated, and necessary valuation allowances are provided. The carrying value of the net deferred tax assets is based on management’s judgments using certain estimates and assumptions that we will be able to generate sufficient future taxable income in certain tax jurisdictions to realize the benefits of such assets. If these estimates and related assumptions change in the future, additional valuation allowances may be recorded against the deferred tax assets resulting in additional income tax expense in the future. The components of our net deferred tax liabilities are as follows:
| September 30,
(in thousands) | 2021 |  | 2020
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | 598,798 |  |  | $ | 685,389 |
Marketable securities | 1,669 |  |  | 1,957 |
Other | 26,244 |  |  | 26,138 |
Total deferred tax liabilities | 626,711 |  |  | 713,484 |
Deferred tax assets: |  |  |
Pension reserves | 5,791 |  |  | 7,369 |
Self-insurance reserves | 7,862 |  |  | 10,360 |
Net operating loss, foreign tax credit, and other federal tax credit carryforwards | 25,474 |  |  | 33,747 |
Financial accruals | 31,910 |  |  | 32,481 |
Other | 17,963 |  |  | 15,632 |
Total deferred tax assets | 89,000 |  |  | 99,589 |
Valuation allowance | (25,726) |  |  | (36,780) |
Net deferred tax assets | 63,274 |  |  | 62,809 |
Net deferred tax liabilities | $ | 563,437 |  |  | $ | 650,675 |
The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. As of September 30, 2021, we had federal, state and foreign tax net operating loss carryforwards of approximately $7.3 million, $56.2 million and $32.0 million, respectively, federal and foreign research and development tax credits of approximately $1.0 million and $0.3 million, respectively, and foreign tax credit carryforwards of approximately $10.6 million (of which $9.3 million is reflected as a deferred tax asset in our Consolidated Balance Sheets prior to consideration of our valuation allowance), which will expire in fiscal years 2022 through 2041 and some of which can be carried forward indefinitely. Certain of these carryforwards are subject to various rules which impose limitations on their utilization. The valuation allowance is primarily attributable to foreign net operating loss carryforwards of $9.5 million, foreign tax credit carryforwards of $9.3 million, equity compensation of $5.4 million, and foreign minimum tax credit carryforwards of $1.4 million which more likely than not will not be utilized. Unrecognized Tax Benefits We recognize accrued interest related to unrecognized tax benefits in interest expense, and penalties in other expense in the Consolidated Statements of Operations. As of September 30, 2021 and 2020, we had accrued interest and penalties of $2.9 million and $2.8 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits for the fiscal years ended September 30, 2021 and 2020 is as follows:
(in thousands) | 2021 |  | 2020
Unrecognized tax benefits at October 1, | $ | 13,440 |  |  | $ | 15,759 |
Gross decreases - current period effect of tax positions | (11,648) |  |  | (2,338) |
Gross increases - current period effect of tax positions | — |  |  | 20 |
Expiration of statute of limitations for assessments | (114) |  |  | (1) |
Unrecognized tax benefits at September 30, | $ | 1,678 |  |  | $ | 13,440 |
As of September 30, 2021 and 2020, our liability for unrecognized tax benefits includes $1.4 million and $13.0 million, respectively, of unrecognized tax benefits related to discontinued operations that, if recognized, would not affect the effective tax rate. The remaining unrecognized tax benefits would affect the effective tax rate if recognized. The liabilities for unrecognized tax benefits and related interest and penalties are included in other noncurrent liabilities in our Consolidated Balance Sheets. For the next 12 months, we cannot predict with certainty whether we will achieve ultimate resolution of any uncertain tax position associated with our U.S. and international operations that could result in increases or decreases of our unrecognized tax benefits. However, we do not expect any such increases or decreases to have a material effect on our results of operations or financial position. Tax Returns We file a consolidated U.S. federal income tax return, as well as income tax returns in various states and foreign jurisdictions. The tax years that remain open to examination by U.S. federal and state jurisdictions include fiscal years 2017 through 2020, with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2003 through 2020.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration