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INCOME TAXES
 12 Months Ended
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)202220212020
Current:
Federal$40,245 $(15,466)$15,431 
Foreign10,703 772 1,495 
State1,906 725 523 
52,854 (13,969)17,449 
Deferred:
Federal(32,382)(81,760)(127,096)
Foreign(1,310)4,106 (12,390)
State5,204 (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)202220212020
Domestic$(14,411)$(412,556)$(458,364)
Foreign45,329 (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,
202220212020
U.S. Federal income tax rate21.0 %21.0 %21.0 %
Effect of foreign taxes31.7 0.1 (0.2)
State income taxes, net of federal tax benefit21.7 2.6 2.8 
Other impact of foreign operations3.5 — (0.5)
Non-deductible meals and entertainment1.0 (0.1)(0.2)
Equity compensation9.6 (0.8)(0.3)
Excess officer's compensation3.8 — (0.2)
Foreign derived intangible income(13.8)— — 
Other0.3 0.7 (0.4)
Effective income tax rate78.8 %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)20222021
Deferred tax liabilities:
Property, plant and equipment$558,293 $598,798 
Marketable securities9,766 1,669 
Other24,460 26,244 
Total deferred tax liabilities592,519 626,711 
Deferred tax assets:
Pension reserves4,811 5,791 
Self-insurance reserves7,333 7,862 
Net operating loss, foreign tax credit, and other federal tax credit carryforwards8,673 25,474 
Financial accruals31,022 31,910 
Other13,678 17,963 
Total deferred tax assets65,517 89,000 
Valuation allowance(10,710)(25,726)
Net deferred tax assets54,807 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)202220212020
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.