Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Components of Income Tax Expense

Income tax expense is comprised of the following for the indicated periods (in thousands):

	Years Ended September 30,
	2017		2016		2015
Current:
Federal	$	7,578	$	18,724	$	28,793
State		2,664		5,344		8,143
Deferred
Federal		8,775		7,485		(3,719	)
State		1,359		2,185		(382	)
	$	20,376	$	33,738	$	32,835

Provision for Income Taxes Differs from Income Taxes

The provision for income taxes differs from income taxes computed at the Federal statutory rate as a result of the following (in thousands):

	Years Ended September 30,
	2017			2016			2015
Income from continuing operations before taxes	$	47,276		$	78,672		$	70,391
Provision for income taxes:
Tax at Federal statutory rate	$	16,546		$	27,535		$	24,637
Impact of Partnership loss not subject to federal income taxes		741			477			3,228
State taxes net of federal benefit		3,170			5,672			4,922
Permanent differences		89			80			78
Deferred tax benefit		—			—			(3,179	)
Change in valuation allowance		115			26			3,027
Change in unrecognized tax benefit		—			—			81
Other		(285	)		(52	)		41
	$	20,376		$	33,738		$	32,835

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2017 and September 30, 2016 using current tax rates are as follows (in thousands):

	September 30,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	5,374		$	5,791
Vacation accrual		3,542			3,367
Pension accrual		7,455			8,549
Allowance for bad debts		2,166			1,728
Insurance accrual		19,914			25,828
Inventory capitalization		895			1,128
Alternative minimum tax credit carryforward		—			266
Other, net		2,242			2,512
Total deferred tax assets		41,588			49,169
Valuation allowance		(3,168	)		(3,053	)
Net deferred tax assets	$	38,420		$	46,116
Deferred tax liabilities:
Property and equipment	$	8,001		$	3,999
Fair value of derivative instruments		1,683			788
Intangibles		34,876			35,976
Total deferred tax liabilities	$	44,560		$	40,763
Net deferred taxes	$	(6,140	)	$	5,353