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Income Taxes | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The components of income (loss) before income tax benefit are as follows:
| Years Ended September 30, |  |
| 2020 |  | 2019 |  |
U.S. | $ | 10,071 |  |  | $ | 3,416 |  |  |
Non-U.S. | (1,091) |  |  | (11,623) |  |  |
Income (loss) before income tax benefit | $ | 8,980 |  |  | $ | (8,207) |  |  |
Income tax benefit consist of the following:
| Years Ended September 30, |  |
| 2020 |  | 2019 |  |
Current income tax provision (benefit): |  |  |  |  |
U.S. federal | $ | — |  |  | $ | — |  |  |
U.S. state and local | 19 |  |  | (27) |  |  |
Non-U.S. | 192 |  |  | (109) |  |  |
Total current tax provision (benefit) | 211 |  |  | (136) |  |  |
Deferred income tax provision (benefit): |  |  |  |  |
U.S. federal | 10 |  |  | 8 |  |  |
U.S. state and local | 1 |  |  | 2 |  |  |
Non-U.S. | (433) |  |  | (575) |  |  |
Total deferred tax provision (benefit) | (422) |  |  | (565) |  |  |
Income tax benefit | $ | (211) |  |  | $ | (701) |  |  |
The income tax benefit in the accompanying consolidated statements of operations differs from amounts determined by using the statutory rate as follows:
| Years Ended September 30, |  |
| 2020 |  | 2019 |  |
Income (loss) before income tax benefit | $ | 8,980 |  |  | $ | (8,207) |  |  |
Income tax provision (benefit) at U.S. federal statutory rates | $ | 1,886 |  |  | $ | (1,723) |  |  |
Tax effect of: |  |  |  |  |
Foreign rate differential | — |  |  | 1,698 |  |  |
State and local income taxes | 20 |  |  | 14 |  |  |
Federal tax credits | (135) |  |  | (144) |  |  |
Valuation allowance | (2,025) |  |  | (556) |  |  |
Other | 43 |  |  | 10 |  |  |
Income tax benefit | $ | (211) |  |  | $ | (701) |  |  |
As described above, on March 27, 2020, the CARES Act was enacted and signed into law, which includes provisions relating to refundable payroll tax credits, deferral of certain payment requirements for the employer portion of Social Security taxes, net operating loss carryback periods and temporarily increasing the amount of net operating losses that corporations can use to offset income, alternative minimum tax ("AMT") credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not materially affect the Company’s fiscal 2020 income tax provision, deferred tax assets and liabilities, or related taxes payable. The Company continues to assess the future implications of these provisions within the CARES Act on its consolidated financial statements but does not expect the impact to be material. Deferred tax assets and liabilities at September 30 consist of the following:
| 2020 |  | 2019
Deferred tax assets: |  |  |
Net U.S. operating loss carryforwards | $ | 3,543 |  |  | $ | 5,002 |
Net non-U.S. operating loss carryforwards | 789 |  |  | 866 |
Employee benefits | 2,688 |  |  | 2,456 |
Inventory reserves | 1,049 |  |  | 970 |
Allowance for doubtful accounts | 73 |  |  | 144
Intangibles | 2,197 |  |  | 2,535 |
Foreign tax credits | 1,724 |  |  | 1,724 |
Other tax credits | 1,359 |  |  | 1,232 |
Other | 1,171 |  |  | 918 |
Total deferred tax assets | 14,593 |  |  | 15,847 |
Deferred tax liabilities: |  |  |
Depreciation | (8,653) |  |  | (8,135) |
Prepaid expenses | (376) |  |  | (192) |
Other | (1,635) |  |  | (1,681) |
Total deferred tax liabilities | $ | (10,664) |  |  | $ | (10,008) |
Net deferred tax assets | 3,929 |  |  | 5,839 |
Valuation allowance | (5,329) |  |  | (7,557) |
Net deferred tax liabilities | (1,400) |  |  | (1,718) |
At September 30, 2020, the Company has a non-U.S. tax loss carryforward of approximately $6,141 related to the Company’s non-operating and Italian subsidiaries. The Company's non-operating 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. Additionally, a valuation allowance has been recorded in fiscal 2020 against a portion of the deferred tax asset related to the Italian tax loss carryforward that was not considered realizable. The non-operating and Italian tax loss carryforwards do not expire. The Company has $1,724 of foreign tax credit carryforwards that are subject to expiration in fiscal 2023-2028, $1,182 of U.S. general business tax credits that are subject to expiration in 2035-2040, and $12,943 of U.S. Federal tax loss carryforwards with $9,622 subject to expiration in fiscal 2037 and $3,321 that do not expire. 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 $178 of U.S. state tax credit carryforwards subject to expiration in fiscal 2022-2024 and $25,782 of U.S. state and local tax loss carryforwards subject to expiration in fiscal 2021-2039. The U.S. state tax credit carryforwards and U.S. state and local tax loss carryforwards have been fully offset by a valuation allowance. As of fiscal 2020, the valuation allowance on the Company’s U.S. net deferred tax assets is $5,329. Each reporting period, the Company assesses available positive and negative evidence and estimate in determining the realizability of its deferred tax assets. Through fiscal 2019, the Company’s history of U.S. operating losses has resulted in significant negative evidence requiring a full valuation allowance to be recorded against the U.S. net deferred tax assets. Recent positive evidence includes profitable fiscal 2020 U.S. results, however, there continues to be uncertainty as a result of the ongoing COVID-19 pandemic. Accordingly, the Company has maintained a full valuation allowance on its U.S. net deferred tax assets in fiscal 2020. However, it is reasonably possible that sufficient positive evidence required to release all, or a portion, of the valuation allowance in the U.S. will exist within the next 12 months. The Company reported liabilities for uncertain tax positions, excluding any related interest and penalties, of $22 for both fiscal 2020 and 2019. If recognized, $22 of the fiscal 2020 uncertain tax positions would impact the effective tax rate. As of September 30, 2020, the Company had accrued interest of $14 and recognized $1 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:
| 2020 |  | 2019
Balance at beginning of year | $ | 22 |  |  | $ | 53 |
Decrease due to lapse of statute of limitations | — |  |  | (31) |
Balance at end of year | $ | 22 |  |  | $ | 22 |
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 2017, 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. The Company does not record deferred taxes on the undistributed earnings of its non-U.S. subsidiaries as it does not expect the temporary differences related to those unremitted earnings to reverse in the foreseeable future. As of September 30, 2020, the Company's non-U.S. subsidiaries had accumulated deficits of approximately $485. Future distributions of accumulated earnings of the Company's non-U.S. subsidiaries may be subject to nominal withholding taxes.

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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