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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2023
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 the U.S. and foreign income (loss) before income taxes for fiscal 2023, 2022, and 2021:
| Fiscal
(in thousands) | 2023 |  | 2022 |  | 2021
United States | $ | (5,635) |  |  | $ | (11,415) |  |  | $ | (8,853) |
Foreign | 77,836 |  |  | 488,403 |  |  | 423,403 |
Income before income taxes | $ | 72,201 |  |  | $ | 476,988 |  |  | $ | 414,550 |
Provision (benefit) for income taxes from continuing operations | The following table reflects the current and deferred components of provision for (benefit from) income taxes for fiscal 2023, 2022, and 2021:
| Fiscal
(in thousands) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | 10,412 |  |  | $ | 14,975 |  |  | $ | 26,563 |
State | (128) |  |  | 246 |  |  | 261 |
Foreign | 8,830 |  |  | 37,448 |  |  | 30,771 |
Deferred: |  |  |  |  |
Federal | 1,304 |  |  | (5,809) |  |  | (2,979) |
State | — |  |  | — |  |  | — |
Foreign | (5,365) |  |  | (3,417) |  |  | (7,321) |
Provision for income taxes | $ | 15,053 |  |  | $ | 43,443 |  |  | $ | 47,295 |
Effective income tax rate reconciliation | The following table reconciles the provision for (benefit from) income taxes with the expected income tax provision computed based on the applicable U.S. federal statutory tax rate for fiscal 2023, 2022, and 2021:
| Fiscal |
(dollar amounts in thousands) | 2023 |  | 2022 |  | 2021 |
Expected income tax provision based on the U.S. federal statutory tax rate | $ | 15,162 |  |  | $ | 100,212 |  |  | $ | 86,915 |  |
Effect of earnings of foreign subsidiaries subject to different tax rates | (8,448) |  |  | (17,936) |  |  | (15,028) |  |
Benefit from tax incentives | (11,198) |  |  | (50,113) |  |  | (45,501) |  |
Benefit from research and development tax credits | (4,038) |  |  | (2,995) |  |  | (2,705) |  |
Benefit from foreign tax credits | (7,834) |  |  | (26,021) |  |  | (20,281) |  |
Valuation allowance | 3,127 |  |  | (5,830) |  |  | (11,620) |  |
Foreign operations (Deemed income, taxes on undistributed foreign earnings, and withholding taxes) | 24,450 |  |  | 45,421 |  |  | 52,414 |  |
Goodwill impairment | 2,517 |  |  | — |  |  | — |  |
Other, net (1) | 1,315 |  |  | 705 |  |  | 3,101 |  |
Provision for income taxes | $ | 15,053 |  |  | $ | 43,443 |  |  | $ | 47,295 |  |
Effective tax rate | 20.8 | % |  | 9.1 | % |  | 11.4 | % |
(1) Certain balances in fiscal 2022 and 2021 have been reclassified to conform to the current period presentation. These reclassifications have no impact to the consolidated financial statements in fiscal 2022 and 2021.
Net deferred tax balance | The following table reflects the deferred tax balances based on the tax effects of cumulative temporary differences for fiscal 2023 and 2022:
| Fiscal
(in thousands) | 2023 |  | 2022
Accruals and reserves | $ | 13,118 |  |  | $ | 14,168 |
Capitalized Research(1) | 12,529 |  |  | 25,105 |
Tax credit carryforwards | 5,026 |  |  | 3,893 |
Net operating loss carryforwards | 26,607 |  |  | 15,329 |
Gross deferred tax assets | $ | 57,280 |  |  | $ | 58,495 |
Valuation allowance | $ | (21,483) |  |  | $ | (21,750) |
Deferred tax assets, net of valuation allowance | $ | 35,797 |  |  | $ | 36,745 |
Fixed and intangible assets(1) | $ | (16,357) |  |  | $ | (19,142) |
Taxes on undistributed foreign earnings | (25,153) |  |  | (26,068) |
Deferred tax liabilities | $ | (41,510) |  |  | $ | (45,210) |
Net deferred tax liabilities | $ | (5,713) |  |  | $ | (8,465) |
Reported as |  |  |
Deferred tax assets | $ | 31,551 |  |  | $ | 25,572 |
Deferred tax liabilities | (37,264) |  |  | (34,037) |
Net deferred tax liabilities | $ | (5,713) |  |  | $ | (8,465) |
Unrecognized tax benefits | The following table reconciles the beginning and ending balances of the Company’s unrecognized tax benefit, excluding related accrued interest and penalties, for fiscal 2023, 2022, and 2021:
|  | Fiscal
(in thousands) |  | 2023 |  | 2022 |  | 2021
Unrecognized tax benefit, beginning of year |  | $ | 16,623 |  |  | $ | 14,922 |  |  | $ | 13,064 |
Additions for tax positions, current year |  | 1,493 |  |  | 2,288 |  |  | 4,003 |
Reductions for tax positions, prior year |  | (1,497) |  |  | (587) |  |  | (2,145) |
Unrecognized tax benefit, end of year |  | $ | 16,619 |  |  | $ | 16,623 |  |  | $ | 14,922 |

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