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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Schedule of components of income tax expense (benefit) | The Company's expense (benefit) from income taxes from continuing operations consists of the following for the periods presented:
| Fiscal Year Ended September 30,
in thousands | 2020 |  | 2019 |  | 2018
Current federal (a) | $ | (4,641) |  |  | $ | (4,935) |  |  | $ | 57 |
Current state | 485 |  |  | 693 |  |  | 512 |
Deferred federal (b) | 20,639 |  |  | (31,291) |  |  | 102,082 |
Deferred state (c) | 1,490 |  |  | (1,684) |  |  | (8,167) |
Total expense (benefit) | $ | 17,973 |  |  | $ | (37,217) |  |  | $ | 94,484 |
(a) Fiscal 2020 federal current benefit is primarily driven by the expected refund of our remaining alternative minimum tax credit balance due to the enactment of the CARES Act. Fiscal 2019 federal current benefit is primarily driven by the expected refund of half of our outstanding alternative minimum tax credit that became refundable due to the enactment of the Tax Cuts and Jobs Act. See further discussion below. (b) Fiscal 2018 federal deferred expense is primarily driven by the remeasurement of our deferred tax asset at the newly enacted 21.0% federal tax rate as a result of the Tax Cuts and Jobs Act, partially offset by the release of the remaining valuation allowance on our federal deferred tax assets. (c) Fiscal 2018 state deferred benefit is primarily driven by the release of valuation allowance in certain operating jurisdictions; refer to discussion below titled “Valuation Allowance.”
Schedule of effective income tax rate reconciliation | The expense from income taxes from continuing operations differs from the amount computed by applying the federal income tax statutory rate as follows for the periods presented:
| Fiscal Year Ended September 30,
in thousands | 2020 |  | 2019 |  | 2018
Income tax computed at statutory rate | $ | 14,971 |  |  | $ | (24,494) |  |  | $ | 12,112 |
State income taxes, net of federal benefit | 1,300 |  |  | (590) |  |  | 111 |
Deferred rate change | 260 |  |  | (88) |  |  | 110,071 |
Decrease in valuation allowance - other (a) | — |  |  | — |  |  | (27,370) |
Changes in uncertain tax positions | (2) |  |  | (7) |  |  | 598 |
Permanent differences | 2,177 |  |  | 2,908 |  |  | 2,133 |
Tax credits | (939) |  |  | (14,902) |  |  | (3,174) |
Other, net | 206 |  |  | (44) |  |  | 3 |
Total expense (benefit) | $ | 17,973 |  |  | $ | (37,217) |  |  | $ | 94,484 |
(a) For fiscal 2018, amount represents a $27.4 million release of the valuation allowance on our federal and state deferred tax assets; refer to discussion below titled “Valuation Allowance.” Due to our fiscal year end and the enactment of the Tax Cuts and Jobs Act, our fiscal 2018 provision was calculated using a blended 24.5% federal tax rate.
Schedule of deferred tax assets and liabilities | The tax effects of significant temporary differences that give rise to the net deferred tax assets are as follows as of September 30, 2020 and September 30, 2019:
in thousands | September 30, 2020 |  | September 30, 2019
Deferred tax assets: |  |  |
Federal and state tax carryforwards | $ | 192,981 |  |  | $ | 208,360 |
Inventory adjustments | 34,971 |  |  | 42,605 |
Intangible assets | 13,993 |  |  | 17,209 |
Incentive compensation | 13,116 |  |  | 9,360 |
Warranty and other reserves | 5,503 |  |  | 4,302 |
Property, equipment and other assets | 2,197 |  |  | 2,255 |
Uncertain tax positions | 723 |  |  | 729 |
Other | 844 |  |  | 623 |
Total deferred tax assets | 264,328 |  |  | 285,443 |
Valuation allowance | (39,185) |  |  | (38,486) |
Net deferred tax assets | $ | 225,143 |  |  | $ | 246,957 |
Schedule of unrecognized tax benefits roll forward | A reconciliation of our unrecognized tax benefits is as follows for the beginning and end of each period presented:
| Fiscal Year Ended September 30,
in thousands | 2020 |  | 2019 |  | 2018
Balance at beginning of year | $ | 3,473 |  |  | $ | 3,494 |  |  | $ | 3,804 |
Additions for tax positions related to current year | — |  |  | — |  |  | — |
Additions for tax positions related to prior years | — |  |  | — |  |  | — |
Reductions in tax positions of prior years | — |  |  | — |  |  | — |
Lapse of statute of limitations | (32) |  |  | (21) |  |  | (310) |
Balance at end of year | $ | 3,441 |  |  | $ | 3,473 |  |  | $ | 3,494 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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