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Income Tax Expense | 12 Months Ended
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Sep. 30, 2021
Income Tax Expense |
Income Tax Expense | 7. Income Tax Expense We allocated total income tax expense (benefit) for the years ended September 30, 2021, 2020 and 2019 to income tax expense as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2021 |  | 2020 |  | 2019
Income tax expense from continuing operations | ​ | $ | 17,175 |  | 13,510 |  | 20,388
Income tax expense from discontinued operations | ​ |  | — |  | 23,501 |  | 789
Total income tax expense (benefit) | ​ | $ | 17,175 |  | 37,011 |  | 21,177
​ The components of income from continuing operations before income taxes for 2021, 2020 and 2019 consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2021 |  | 2020 |  | 2019
United States | ​ | $ | 70,214 |  | 23,951 |  | 87,150
Foreign | ​ |  | 10,457 |  | 12,455 |  | 10,727
Total income before income taxes | ​ | $ | 80,671 |  | 36,406 |  | 97,877
​ The principal components of income tax expense (benefit) from continuing operations for 2021, 2020 and 2019 consist of: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2021 |  | 2020 |  | 2019
Federal: |  | ​ |  |  |  |  |
Current | ​ | $ | 14,807 |  | 10,495 |  | 13,888
Deferred | ​ |  | (1,598) |  | 1,311 |  | 250
State and local: | ​ |  | ​ |  | ​ |  | ​
Current | ​ |  | 2,257 |  | 1,984 |  | 3,039
Deferred | ​ |  | (786) |  | (932) |  | 98
Foreign: | ​ |  | ​ |  | ​ |  | ​
Current | ​ |  | 2,922 |  | 2,875 |  | 2,439
Deferred | ​ |  | (427) |  | (2,223) |  | 674
Total | ​ | $ | 17,175 |  | 13,510 |  | 20,388
​ The actual income tax expense (benefit) from continuing operations for 2021, 2020 and 2019 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019 |
Federal corporate statutory rate |  | 21.0 | % | 21.0 | % | 21.0 | %
State and local, net of Federal benefits | ​ | 1.9 |  | 2.3 |  | 3.2 | ​
Foreign | ​ | (0.4) |  | 1.3 |  | 0.6 | ​
Research credit | ​ | (0.9) |  | (3.7) |  | (0.8) | ​
Change in uncertain tax positions | ​ | — |  | — |  | (0.1) | ​
Executive compensation | ​ | 0.9 |  | 1.6 |  | 0.3 | ​
Valuation allowance | ​ | — |  | (6.8) |  | (2.4) | ​
GILTI and FDII | ​ | (1.3) | ​ | (2.1) | ​ | (0.6) | ​
Tax reform – impact on U.S. deferred tax assets and liabilities | ​ | — |  | — |  | (0.3) | ​
Tax reform – transition tax | ​ | — |  | — |  | (0.1) | ​
Pension plan termination charge | ​ | — | ​ | 23.4 | ​ | — | ​
Other, net | ​ | 0.1 |  | 0.1 |  | — | ​
Effective income tax rate | ​ | 21.3 | % | 37.1 | % | 20.8 | %
​ The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2021 and 2020 are presented below: ​
​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2021 |  | 2020
Deferred tax assets: |  | ​ |  |  |
Inventories | ​ | $ | 4,267 |  | 5,007
Pension and other postretirement benefits | ​ |  | 859 |  | 842
Timing differences related to revenue recognition | ​ | ​ | 9,365 | ​ | 4,936
Lease liabilities | ​ | ​ | 7,614 | ​ | 5,220
Net operating and capital loss carryforwards — domestic | ​ |  | 542 |  | 563
Net operating loss carryforward — foreign | ​ |  | 4,279 |  | 3,678
Other compensation-related costs and other cost accruals | ​ |  | 8,174 |  | 8,953
State credit carryforward | ​ |  | 2,639 |  | 2,366
Foreign credit carryforward | ​ | ​ | 192 | ​ | —
Total deferred tax assets | ​ |  | 37,931 |  | 31,565
​ | ​ |  | ​ |  | ​
Deferred tax liabilities: | ​ |  | ​ |  | ​
ROU assets | ​ | ​ | (7,614) | ​ | (5,220)
Goodwill | ​ |  | (13,746) |  | (7,878)
Acquisition intangible assets | ​ |  | (62,052) |  | (52,682)
Depreciation, software amortization | ​ |  | (22,418) |  | (21,283)
Net deferred tax liabilities before valuation allowance | ​ |  | (67,899) |  | (55,498)
Less valuation allowance | ​ |  | (2,011) |  | (1,932)
Net deferred tax liabilities | ​ | $ | (69,910) |  | (57,430)
​ We had a foreign net operating loss (NOL) carryforward of $15.5 million at September 30, 2021, which reflects tax loss carryforwards in Germany, South Africa, Canada, Japan and the United Kingdom. Approximately $13.3 million of the tax loss carryforwards have no expiration date while the remaining $2.1 million will expire between 2031 and 2041. We had net foreign credit carryforwards of $0.2 million, of which all expire in 2041.We had deferred tax assets related to state NOL carryforwards of $0.5 million at September 30, 2021 which expire between 2025 and 2041. We also had net state research and other credit carryforwards of $2.6 million of which $1.9 million expires between 2022 and 2041. The remaining $0.8 million does not have an expiration date. The valuation allowance for deferred tax assets as of September 30, 2021 and 2020 was $2.0 million and $1.9 million, respectively. The net change in the total valuation allowance for each of the years ended September 30, 2021 and 2020 was an increase of $0.1 million and a decrease of $2.6 million, respectively.We established a valuation allowance against state credit carryforwards of $0.6 million at September 30 of both 2021 and 2020. In addition, we established a valuation allowance against state NOL carryforwards that are not expected to be realized in future periods of $0.5 million at September 30 of both 2021 and 2020, respectively. Lastly, we established a valuation allowance against certain NOL carryforwards in foreign jurisdictions which may not be realized in future periods of $0.9 million and $0.8 million at September 30, 2021 and 2020, respectively.

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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 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
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