XML 36 R17.htm IDEA: XBRL DOCUMENT
v3.23.3

INCOME TAXES | 12 Months Ended
--- | ---
Sep. 30, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES |
NOTE 7 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) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 150,273 |  |  | $ | 40,245 |  |  | $ | (15,466) |
Foreign | 12,883 |  |  | 10,703 |  |  | 772 |
State | 16,523 |  |  | 1,906 |  |  | 725 |
| 179,679 |  |  | 52,854 |  |  | (13,969) |
Deferred: |  |  |  |  |
Federal | (20,337) |  |  | (32,382) |  |  | (81,760) |
Foreign | (1,254) |  |  | (1,310) |  |  | 4,106 |
State | 1,191 |  |  | 5,204 |  |  | (12,098) |
| (20,400) |  |  | (28,488) |  |  | (89,752) |
Total provision (benefit) | $ | 159,279 |  |  | $ | 24,366 |  |  | $ | (103,721) |
Prior to the fiscal year ended September 30, 2023, Income from discontinued operations was presented as a separate line item on our Consolidated Statements of Operations. To conform with the current fiscal year presentation, we reclassified amounts previously presented in Income from discontinued operations to Other within Other income (expense) on our Consolidated Statements of Operations for the years ended September 30, 2022 and September 30, 2021. Thus, the September 30, 2022 and September 30, 2021 amounts of domestic and foreign income (loss) before income taxes and the September 30, 2022 and September 30, 2021 reconciliation of our effective income tax rates to the U.S. Federal income tax rates have been revised to conform with the current fiscal year presentation. The amounts of domestic and foreign income (loss) before income taxes are as follows:
| Year Ended September 30,
(in thousands) | 2023 |  | 2022 |  | 2021
Domestic | $ | 584,891 |  |  | $ | (14,411) |  |  | $ | (412,556) |
Foreign | 8,488 |  |  | 45,730 |  |  | (17,315) |
| $ | 593,379 |  |  | $ | 31,319 |  |  | $ | (429,871) |
The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows:
| Year Ended September 30,
| 2023 |  | 2022 |  | 2021
U.S. Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of foreign taxes | 2.1 |  |  | 31.3 |  |  | 0.1 |
State income taxes, net of federal tax benefit | 2.4 |  |  | 21.4 |  |  | 2.7 |
Other impact of foreign operations | 0.2 |  |  | 3.2 |  |  | 0.5 |
Non-deductible meals and entertainment | 0.6 |  |  | 1.0 |  |  | (0.1) |
Equity compensation | (0.1) |  |  | 9.5 |  |  | (0.8) |
Excess officer's compensation | 0.4 |  |  | 3.7 |  |  | — |
Foreign derived intangible income | — |  |  | (13.7) |  |  | — |
Other | 0.2 |  |  | 0.4 |  |  | 0.7 |
Effective income tax rate | 26.8 | % |  | 77.8 | % |  | 24.1 | %
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) | 2023 |  | 2022
Deferred tax liabilities: |  |  |
Property, plant and equipment | $ | 532,827 |  |  | $ | 558,293 |
Marketable securities | 14,626 |  |  | 9,766 |
Other | 27,980 |  |  | 24,460 |
Total deferred tax liabilities | 575,433 |  |  | 592,519 |
Deferred tax assets: |  |  |
Pension reserves | 3,083 |  |  | 4,811 |
Self-insurance reserves | 6,235 |  |  | 7,333 |
Net operating loss, foreign tax credit, and other federal tax credit carryforwards | 6,770 |  |  | 8,673 |
Financial accruals | 29,449 |  |  | 31,022 |
Other | 21,647 |  |  | 13,678 |
Total deferred tax assets | 67,184 |  |  | 65,517 |
Valuation allowance | (9,560) |  |  | (10,710) |
Net deferred tax assets | 57,624 |  |  | 54,807 |
Net deferred tax liabilities | $ | 517,809 |  |  | $ | 537,712 |
The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement. As of September 30, 2023, we had federal, state and foreign tax net operating loss carryforwards of approximately $2.6 million, $14.8 million and $14.8 million, respectively, and federal and foreign research and development tax credits of approximately $0.4 million and $1.0 million, respectively, which will expire in fiscal 2024 through 2043 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 $2.6 million and equity compensation of $6.9 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, 2023, 2022 and 2021, we had accrued interest and penalties of $2.9 million, $3.0 million and $2.9 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits are as follows:
(in thousands) | 2023 |  | 2022 |  | 2021
Unrecognized tax benefits at October 1, | $ | 960 |  |  | $ | 1,678 |  |  | $ | 13,440 |
Gross decreases - current period effect of tax positions | (534) |  |  | (718) |  |  | (11,648) |
Gross increases - current period effect of tax positions | 6 |  |  | — |  |  | — |
Expiration of statute of limitations for assessments | (185) |  |  | — |  |  | (114) |
Unrecognized tax benefits at September 30, | $ | 247 |  |  | $ | 960 |  |  | $ | 1,678 |
As of September 30, 2023, we have recorded approximately $3.1 million of unrecognized tax benefits, interest, and penalties. We believe it is reasonably possible up to $2.6 million of the unrecognized tax benefits, interest, and penalties will be recognized as of June 30, 2024 as a result of a lapse of the statute of limitations. We cannot predict with certainty if we will achieve ultimate resolution of any additional uncertain tax positions associated with our U.S. and international operations resulting in any additional material increases or decreases of our unrecognized tax benefits for the next twelve months. 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 2019 through 2022, with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2003 through 2022.

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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration