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INCOME TAXES | 12 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES |
NOTE 8 INCOME TAXES
Income Tax (Benefit) Provision and Rate The components of the provision (benefit) for income taxes are as follows:
| Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 40,245 |  |  | $ | (15,466) |  |  | $ | 15,431 |
Foreign | 10,703 |  |  | 772 |  |  | 1,495 |
State | 1,906 |  |  | 725 |  |  | 523 |
| 52,854 |  |  | (13,969) |  |  | 17,449 |
Deferred: |  |  |  |  |
Federal | (32,382) |  |  | (81,760) |  |  | (127,096) |
Foreign | (1,310) |  |  | 4,106 |  |  | (12,390) |
State | 5,204 |  |  | (12,098) |  |  | (18,069) |
| (28,488) |  |  | (89,752) |  |  | (157,555) |
Total provision (benefit) | $ | 24,366 |  |  | $ | (103,721) |  |  | $ | (140,106) |
The amounts of domestic and foreign income (loss) before income taxes are as follows:
| Year Ended September 30,
(in thousands) | 2022 |  | 2021 |  | 2020
Domestic | $ | (14,411) |  |  | $ | (412,556) |  |  | $ | (458,364) |
Foreign | 45,329 |  |  | (28,624) |  |  | (178,134) |
| $ | 30,918 |  |  | $ | (441,180) |  |  | $ | (636,498) |
The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows:
| Year Ended September 30,
| 2022 |  | 2021 |  | 2020
U.S. Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of foreign taxes | 31.7 |  |  | 0.1 |  |  | (0.2) |
State income taxes, net of federal tax benefit | 21.7 |  |  | 2.6 |  |  | 2.8 |
Other impact of foreign operations | 3.5 |  |  | — |  |  | (0.5) |
Non-deductible meals and entertainment | 1.0 |  |  | (0.1) |  |  | (0.2) |
Equity compensation | 9.6 |  |  | (0.8) |  |  | (0.3) |
Excess officer's compensation | 3.8 |  |  | — |  |  | (0.2) |
Foreign derived intangible income | (13.8) |  |  | — |  |  | — |
Other | 0.3 |  |  | 0.7 |  |  | (0.4) |
Effective income tax rate | 78.8 | % |  | 23.5 | % |  | 22.0 | %
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 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) | 2022 |  | 2021
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | 558,293 |  |  | $ | 598,798 |
Marketable securities | 9,766 |  |  | 1,669 |
Other | 24,460 |  |  | 26,244 |
Total deferred tax liabilities | 592,519 |  |  | 626,711 |
Deferred tax assets: |  |  |
Pension reserves | 4,811 |  |  | 5,791 |
Self-insurance reserves | 7,333 |  |  | 7,862 |
Net operating loss, foreign tax credit, and other federal tax credit carryforwards | 8,673 |  |  | 25,474 |
Financial accruals | 31,022 |  |  | 31,910 |
Other | 13,678 |  |  | 17,963 |
Total deferred tax assets | 65,517 |  |  | 89,000 |
Valuation allowance | (10,710) |  |  | (25,726) |
Net deferred tax assets | 54,807 |  |  | 63,274 |
Net deferred tax liabilities | $ | 537,712 |  |  | $ | 563,437 |
The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. As of September 30, 2022, we had federal, state and foreign tax net operating loss carryforwards of approximately $4.5 million, $45.7 million and $14.3 million, respectively, federal and foreign research and development tax credits of approximately $0.4 million and $0.5 million, respectively, and foreign tax credit carryforwards of approximately $0.9 million which will expire in fiscal 2023 through 2042 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 $3.1 million, foreign tax credit carryforwards of $0.9 million, and equity compensation of $6.8 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, 2022, 2021 and 2020, we had accrued interest and penalties of $3.0 million, $2.9 million and $2.8 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits are as follows:
(in thousands) | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits at October 1, | $ | 1,678 |  |  | $ | 13,440 |  |  | $ | 15,759 |
Gross decreases - current period effect of tax positions | (718) |  |  | (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, | $ | 960 |  |  | $ | 1,678 |  |  | $ | 13,440 |
As of September 30, 2022, 2021 and 2020, our liability for unrecognized tax benefits includes $0.7 million and $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 2018 through 2021, with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2003 through 2021.

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- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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