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Income Taxes | 12 Months Ended
--- | ---
Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of loss from operations before income tax benefit are as follows:
| Years Ended September 30,
| 2017 |  | 2016
U.S. | $ | (15,574 | ) |  | $ | (11,506 | )
Non-U.S. | 2,434 |  |  | (1,827 | )
Loss before income tax provision (benefit) | $ | (13,140 | ) |  | $ | (13,333 | )
Income taxes from operations before income tax provision (benefit) consist of the following:
| Years Ended September 30,
| 2017 |  | 2016
Current income tax provision (benefit): |  |  |
U.S. federal | $ | (64 | ) |  | $ | (2,687 | )
U.S. state and local | (11 | ) |  | (111 | )
Non-U.S. | 951 |  |  | 94 |
Total current tax provision (benefit) | 876 |  |  | (2,704 | )
Deferred income tax provision (benefit): |  |  |
U.S. federal | 147 |  |  | 1,481 |
U.S. state and local | 5 |  |  | 69 |
Non-U.S. | 41 |  |  | (844 | )
Total deferred tax provision | 193 |  |  | 706 |
Income tax provision (benefit) | $ | 1,069 |  |  | $ | (1,998 | )
The income tax benefit from operations in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows:
| Years Ended September 30,
| 2017 |  | 2016
Loss before income tax benefit | $ | (13,140 | ) |  | $ | (13,333 | )
Income tax benefit at U.S. federal statutory rates | $ | (4,599 | ) |  | $ | (4,667 | )
Tax effect of: |  |  |
Foreign rate differential | 120 |  |  | 254 |
State and local income taxes | (6 | ) |  | (42 | )
Impact of tax law changes | (103 | ) |  | (338 | )
Federal tax credits | (252 | ) |  | (572 | )
Valuation allowance | 5,720 |  |  | 3,309 |
Other | 189 |  |  | 58 |
Income tax provision (benefit) | $ | 1,069 |  |  | $ | (1,998 | )
Deferred tax assets and liabilities at September 30 consist of the following:
| 2017 |  | 2016
Deferred tax assets: |  |  |
Net U.S. operating loss carryforwards | $ | 5,188 |  |  | $ | 195 |
Net non-U.S. operating loss carryforwards | 596 |  |  | 777 |
Employee benefits | 2,461 |  |  | 3,366 |
Inventory reserves | 1,240 |  |  | 1,032 |
Allowance for doubtful accounts | 135 |  |  | 234 |
Capitalized research and development expenses | — |  |  | 870 |
Intangibles | 4,873 |  |  | 4,364 |
Foreign tax credits | 602 |  |  | 575 |
Other tax credits | 994 |  |  | 1,006 |
Other | 1,126 |  |  | 1,106 |
Total deferred tax assets | 17,215 |  |  | 13,525 |
Deferred tax liabilities: |  |  |
Depreciation | (8,854 | ) |  | (10,777 | )
Unremitted foreign earnings | (65 | ) |  | (65 | )
Prepaid expenses | (247 | ) |  | (566 | )
Other tax credits | (1,718 | ) |  | (647 | )
Total deferred tax liabilities | (10,884 | ) |  | (12,055 | )
Net deferred tax assets (liabilities) | 6,331 |  |  | 1,470 |
Valuation allowance | (9,597 | ) |  | (4,399 | )
Net deferred tax liabilities | $ | (3,266 | ) |  | $ | (2,929 | )
At September 30, 2017, the Company has a non-U.S. tax loss carryforward of approximately $5,473 related to the Company’s Irish and Italian subsidiaries. The Company's Irish subsidiary ceased operations in 2007 and therefore, a valuation allowance has been recorded against the deferred tax asset related to the Irish tax loss carryforward because it is unlikely that such operating loss can be utilized unless the Irish subsidiary resumes operations. The non-U.S. tax loss carryforward does not expire. The Company has $602 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2026, $758 of U.S. general business tax credits that are subject to expiration in 2035-2037, $28 of alternative minimum tax that do not expire, and $13,561 of U.S. Federal tax loss carryforwards subject to expiration in fiscal 2036-2037. A valuation allowance has been recorded against the deferred tax assets related to the foreign tax credit carryforwards, U.S. general business credits, and U.S. Federal tax loss carryforwards. In addition, the Company has $165 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $23,848 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2020-2037. The U.S. state tax credit carryforwards and U.S. state and local tax loss carryforwards have been fully offset by a valuation allowance. A portion of the U.S. state and local tax loss carryforwards presented in the table above have been reduced by unrealized stock compensation deductions of $5. The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, of $69 in both fiscal 2017 and 2016. If recognized, $69 of the fiscal 2017 uncertain tax positions would impact the effective tax rate. As of September 30, 2017, the Company had accrued interest of $24 and recognized $3 for interest and penalties in operations. The Company classifies interest and penalties on uncertain tax positions as income tax expense. A summary of activity related to the Company’s uncertain tax position is as follows:
| 2017 |  | 2016
Balance at beginning of year | $ | 69 |  |  | $ | 105 |
Decrease due to lapse of statute of limitations | — |  |  | (36 | )
Balance at end of year | $ | 69 |  |  | $ | 69 |
The Company is subject to income taxes in the U.S. federal jurisdiction, Ireland, Italy and various states and local jurisdictions. The Company believes it has appropriate support for its federal income tax returns. The Company is no longer subject to U.S. federal income tax examinations by tax authorities for fiscal years prior to 2013, state and local income tax examinations for fiscal years prior to 2014, or non-U.S. income tax examinations by tax authorities for fiscal years prior to 2007. As of September 30, 2017, the Company has $11,427 of undistributed earnings of non-U.S. subsidiaries for which no deferred taxes have been provided as the Company intends to permanently reinvest these earnings outside the U.S. Quantification of the deferred tax liability associated with these undistributed earnings is not practicable.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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