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Income Tax Expense | 12 Months Ended
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Sep. 30, 2022
Income Tax Expense |
Income Tax Expense | 7. Income Tax Expense We allocated total income tax expense for the years ended September 30, 2022, 2021 and 2020 to income tax expense as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2022 |  | 2021 |  | 2020
Income tax expense from continuing operations | ​ | $ | 24,115 |  | 17,175 |  | 13,510
Income tax expense from discontinued operations | ​ |  | — |  | — |  | 23,501
Total income tax expense (benefit) | ​ | $ | 24,115 |  | 17,175 |  | 37,011
​ The components of income from continuing operations before income taxes for 2022, 2021 and 2020 consisted of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2022 |  | 2021 |  | 2020
United States | ​ | $ | 90,674 |  | 70,214 |  | 23,951
Foreign | ​ |  | 15,761 |  | 10,457 |  | 12,455
Total income before income taxes | ​ | $ | 106,435 |  | 80,671 |  | 36,406
​ The principal components of income tax expense (benefit) from continuing operations for 2022, 2021 and 2020 consist of: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2022 |  | 2021 |  | 2020
Federal: |  | ​ |  |  |  |  |
Current | ​ | $ | 7,248 |  | 14,807 |  | 10,495
Deferred | ​ |  | 9,752 |  | (1,598) |  | 1,311
State and local: | ​ |  | ​ |  | ​ |  | ​
Current | ​ |  | 1,635 |  | 2,257 |  | 1,984
Deferred | ​ |  | 1,774 |  | (786) |  | (932)
Foreign: | ​ |  | ​ |  | ​ |  | ​
Current | ​ |  | 4,645 |  | 2,922 |  | 2,875
Deferred | ​ |  | (939) |  | (427) |  | (2,223)
Total | ​ | $ | 24,115 |  | 17,175 |  | 13,510
​ The actual income tax expense from continuing operations for 2022, 2021 and 2020 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2022 |  | 2021 |  | 2020 |
Federal corporate statutory rate |  | 21.0 | % | 21.0 | % | 21.0 | %
State and local, net of Federal benefits | ​ | 2.9 |  | 1.9 |  | 2.3 | ​
Impact of foreign operations | ​ | (0.3) | ​ | (0.4) | ​ | 1.3 | ​
Federal research credit | ​ | (0.3) | ​ | (0.9) | ​ | (3.7) | ​
Executive compensation | ​ | 0.5 |  | 0.9 |  | 1.6 | ​
Valuation allowance | ​ | (0.3) |  | — |  | (6.8) | ​
U.S. tax on GILTI | ​ | 1.8 | ​ | 1.0 | ​ | 3.2 | ​
GILTI foreign tax credits | ​ | (1.5) | ​ | (0.6) | ​ | (2.7) | ​
FDII deduction | ​ | (0.9) | ​ | (1.7) | ​ | (2.6) | ​
Pension plan termination charge | ​ | — | ​ | — | ​ | 23.4 | ​
Other, net | ​ | (0.2) |  | 0.1 |  | 0.1 | ​
Effective income tax rate | ​ | 22.7 | % | 21.3 | % | 37.1 | %
​ The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2022 and 2021 are presented below: ​
​ | ​ | ​ | ​ | ​ | ​
(Dollars in thousands) |  | 2022 |  | 2021
Deferred tax assets: |  | ​ |  |  |
Inventories | ​ | $ | 4,990 |  | 4,267
Pension and other postretirement benefits | ​ |  | 664 |  | 859
Timing differences related to revenue recognition | ​ | ​ | 61 | ​ | 9,365
Lease liabilities | ​ | ​ | 7,073 | ​ | 7,614
Net operating and capital loss carryforwards — domestic | ​ |  | 575 |  | 542
Net operating loss carryforward — foreign | ​ |  | 3,396 |  | 4,279
Other compensation-related costs and other cost accruals | ​ |  | 9,032 |  | 8,174
State credit carryforward | ​ |  | 1,676 |  | 2,639
Foreign credit carryforward | ​ | ​ | 203 | ​ | 192
Total deferred tax assets | ​ |  | 27,670 |  | 37,931
​ | ​ |  | ​ |  | ​
Deferred tax liabilities: | ​ |  | ​ |  | ​
ROU assets | ​ | ​ | (7,073) | ​ | (7,614)
Goodwill | ​ |  | (11,691) |  | (13,746)
Acquisition intangible assets | ​ |  | (62,051) |  | (62,052)
Depreciation, software amortization | ​ |  | (24,503) |  | (22,418)
Net deferred tax liabilities before valuation allowance | ​ |  | (77,648) |  | (67,899)
Less valuation allowance | ​ |  | (1,208) |  | (2,011)
Net deferred tax liabilities | ​ | $ | (78,856) |  | (69,910)
​ We had a foreign net operating loss (NOL) carryforward of $12.1 million at September 30, 2022, which reflects tax loss carryforwards in Germany, South Africa, Canada, Japan and the United Kingdom. Approximately $10.4 million of the tax loss carryforwards have no expiration date while the remaining $1.7 million will expire between 2031 and 2041. We had net foreign credit carryforwards of $0.2 million, that will expire between 2041 and 2042.We had deferred tax assets related to state NOL carryforwards of $0.6 million at September 30, 2022 which expire between 2025 and 2042. We also had net state research and other credit carryforwards of $1.7 million of which $0.9 million expires between 2024 and 2037. The remaining $0.8 million does not have an expiration date. The valuation allowance for deferred tax assets as of September 30, 2022 and 2021 was $1.2 million and $2.0 million, respectively. The net change in the total valuation allowance for each of the years ended September 30, 2022 and 2021 was a decrease of $0.8 million and an increase of $0.1 million, respectively.We established a valuation allowance against state credit carryforwards of $0.6 million at September 30, 2021. This balance was released as of September 30, 2022. In addition, we maintained 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 2022 and 2021. Lastly, we established a valuation allowance against certain NOL carryforwards in foreign jurisdictions which may not be realized in future periods of $0.7 million and $0.9 million at September 30, 2022 and 2021, respectively. ​ As of September 30, 2022, the Company does not have any material unrecognized tax benefits.

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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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