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INCOME TAXES
 12 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE 7 INCOME TAXES
Income Tax Provision and Rate
The components of the provision for income taxes are as follows:
Year Ended September 30,
(in thousands)202420232022
Current:
Federal$136,110 $150,273 $40,245 
Foreign7,756 12,883 10,703 
State16,180 16,523 1,906 
160,046 179,679 52,854 
Deferred:
Federal(18,785)(20,337)(32,382)
Foreign(2,102)(1,254)(1,310)
State(2,304)1,191 5,204 
(23,191)(20,400)(28,488)
Total provision
$136,855 $159,279 $24,366 
The amounts of domestic and foreign income (loss) before income taxes are as follows:
Year Ended September 30,
(in thousands)202420232022
Domestic$433,553 $584,891 $(14,411)
Foreign47,467 8,488 45,730 
$481,020 $593,379 $31,319 
The reconciliation of our effective income tax rates to the U.S. Federal income tax rate is as follows:
Year Ended September 30,
202420232022
U.S. Federal income tax rate21.0 %21.0 %21.0 %
Effect of foreign taxes1.3 2.1 31.3 
State income taxes, net of federal tax benefit2.2 2.4 21.4 
Other impact of foreign operations1.7 0.2 3.2 
Non-deductible meals and entertainment0.9 0.6 1.0 
Equity compensation(0.1)(0.1)9.5 
Excess officer's compensation0.8 0.4 3.7 
Foreign derived intangible income— — (13.7)
Other0.7 0.2 0.4 
Effective income tax rate28.5 %26.8 %77.8 %
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)20242023
Deferred tax liabilities:
Property, plant and equipment$534,161 $532,827 
Marketable securities18,877 14,626 
Other29,044 27,980 
Total deferred tax liabilities582,082 575,433 
Deferred tax assets:
Pension reserves1,477 3,083 
Self-insurance reserves4,619 6,235 
Net operating loss, foreign tax credit, and other federal tax credit carryforwards11,296 6,770 
Accrued liabilities
47,838 29,449 
Other33,126 21,647 
Total deferred tax assets98,356 67,184 
Valuation allowance(11,755)(9,560)
Net deferred tax assets86,601 57,624 
Net deferred tax liabilities$495,481 $517,809 
The change in our net deferred tax assets and liabilities is impacted by foreign currency remeasurement.
As of September 30, 2024, we had federal, state and foreign tax net operating loss carryforwards of approximately $1.1 million, $4.4 million and $37.0 million, respectively, and federal and foreign research and development tax credits of approximately $0.4 million and $1.1 million, respectively, which will expire in fiscal 2025 through 2044 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 $5.2 million and equity compensation of $6.5 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, 2024, 2023 and 2022, we had accrued interest and penalties of $0.6 million, $2.9 million and $3.0 million, respectively. A reconciliation of the change in our gross unrecognized tax benefits are as follows:
(in thousands)202420232022
Unrecognized tax benefits at October 1,$247 $960 $1,678 
Gross decreases - current period effect of tax positions(14)(534)(718)
Gross increases - current period effect of tax positions— 6 — 
Expiration of statute of limitations for assessments(77)(185)— 
Unrecognized tax benefits at September 30, $156 $247 $960 
As of September 30, 2024, we have recorded approximately $0.8 million of unrecognized tax benefits, interest, and penalties. 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 2020 through 2023 with exception of certain state jurisdictions currently under audit. The tax years remaining open to examination by foreign jurisdictions include 2014 through 2023.