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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Income from continuing operations by location, the provision (benefit) for income taxes and the effective tax rate | The following table reflects income or losses from continuing operations by location, the provision for income taxes and the effective tax rate for fiscal 2017, 2016, and 2015:
| Fiscal
(dollar amounts in thousands) | 2017 |  | 2016 |  | 2015
United States operations | $ | (4,114 | ) |  | $ | (12,600 | ) |  | $ | 4,178 |
Foreign operations | 107,800 |  |  | 67,350 |  |  | 33,527 |
Income from operations before tax | 103,686 |  |  | 54,750 |  |  | 37,705 |
Income tax (benefit) / expenses | $ | (8,135 | ) |  | $ | 7,638 |  |  | $ | (12,934 | )
Effective tax rate | (7.8 | )% |  | 14.0 | % |  | (34.3 | )%
Provision (benefit) for income taxes from continuing operations | The following table reflects the provision for income taxes from continuing operations for fiscal 2017, 2016, and 2015:
| Fiscal
(in thousands) | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal | $ | (3,975 | ) |  | $ | 871 |  |  | $ | 1,459 |
State | 64 |  |  | 53 |  |  | 76 |
Foreign | 13,290 |  |  | 21,841 |  |  | 4,707 |
Deferred: |  |  |  |  |
Federal | (15,374 | ) |  | (13,423 | ) |  | (20,250 | )
State | 40 |  |  | 12 |  |  | (10 | )
Foreign | (2,180 | ) |  | (1,716 | ) |  | 1,084 |
Provision for income taxes | $ | (8,135 | ) |  | $ | 7,638 |  |  | $ | (12,934 | )
Effective income tax rate reconciliation | The following table reflects the difference between the provision for income taxes and the amount computed by applying the statutory federal income tax rate for fiscal 2017, 2016, and 2015:
| Fiscal
(in thousands) | 2017 |  | 2016 |  | 2015
Computed income tax expense based on U.S. statutory rate | $ | 36,290 |  |  | $ | 19,163 |  |  | $ | 13,197 |
Effect of earnings of foreign subsidiaries subject to different tax rates | (20,226 | ) |  | (7,330 | ) |  | (6,103 | )
Benefits from foreign approved enterprise zones | (21,556 | ) |  | (8,531 | ) |  | (5,855 | )
Benefits from research and development tax credits | (1,859 | ) |  | (2,839 | ) |  | (4,090 | )
Benefits from foreign tax credits | (26,119 | ) |  | — |  |  | — |
Change in permanent reinvestment assertion | — |  |  | (9,696 | ) |  | (19,704 | )
Tax impact on restructuring | — |  |  | 4,238 |  |  | — |
Tax audit settlement | — |  |  | 4,889 |  |  | — |
Effect of permanent items | 778 |  |  | (2,274 | ) |  | 1,822 |
Non-deductible goodwill impairment | 8,805 |  |  | — |  |  | — |
Deferred taxes not benefited | 6,458 |  |  | 3,585 |  |  | 2,634 |
Foreign operations (withholding taxes, deferred taxes on unremitted earnings, US taxation of foreign earnings) | 6,039 |  |  | 4,981 |  |  | 4,904 |
Reserve for uncertain tax positions | 2,936 |  |  | 208 |  |  | 886 |
State income tax expense (net of federal benefit) | 60 |  |  | 996 |  |  | (1,543 | )
Other, net | 259 |  |  | 248 |  |  | 918 |
Provision for income taxes | $ | (8,135 | ) |  | $ | 7,638 |  |  | $ | (12,934 | )
Net deferred tax balance | The following table reflects the net deferred tax balance, composed of the tax effects of cumulative temporary differences for fiscal 2017 and 2016:
| Fiscal
(in thousands) | 2017 |  | 2016
Inventory reserves | $ | 589 |  |  | $ | 546 |
Stock options | 422 |  |  | 647 |
Other accruals and reserves | 8,230 |  |  | 4,937 |
Domestic tax credit carryforwards | 17,635 |  |  | 8,011 |
Net operating loss carryforwards | 35,937 |  |  | 31,817 |
| $ | 62,813 |  |  | $ | 45,958 |
Valuation allowance | $ | (29,614 | ) |  | $ | (27,381 | )
Total long-term deferred tax asset | $ | 33,199 |  |  | $ | 18,577 |
Foreign withholding tax on undistributed earnings | $ | 20,945 |  |  | $ | 20,119 |
Fixed and intangible assets | 11,262 |  |  | 9,333 |
Total long-term deferred tax liability | $ | 32,207 |  |  | $ | 29,452 |
Total net deferred tax asset / (liability) | $ | 992 |  |  | $ | (10,875 | )
Reported as |  |  |
Deferred tax asset | $ | 27,771 |  |  | $ | 16,822 |
Deferred tax liability | 26,779 |  |  | 27,697 |
Total net deferred tax asset / (liability) | $ | 992 |  |  | $ | (10,875 | )
Unrecognized tax benefits | The beginning and ending balances of the Company's unrecognized tax benefits are reconciled below for fiscal 2017, 2016, and 2015:
|  | Fiscal
(in thousands) |  | 2017 |  | 2016 |  | 2015
Unrecognized tax benefit, beginning of year |  | $ | 7,453 |  |  | $ | 7,101 |  |  | $ | 7,192 |
Additions for tax positions, current year |  | 3,657 |  |  | 519 |  |  | — |
Additions for tax positions, prior year |  | 1,834 |  |  | 827 |  |  | 5,140 |
Reductions for tax positions, prior year |  | (882 | ) |  | (994 | ) |  | (5,231 | )
Unrecognized tax benefit, end of year |  | $ | 12,062 |  |  | $ | 7,453 |  |  | $ | 7,101 |

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