Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

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

	Years Ended September 30,
	2018			2017		2016
Current:
Federal	$	(6,067	)	$	7,578	$	18,724
State		(1,016	)		2,664		5,344
Deferred
Federal		11,052			8,775		7,485
State		3,633			1,359		2,185
	$	7,602		$	20,376	$	33,738

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,
	2018			2017			2016
Income from continuing operations before taxes	$	63,107		$	47,276		$	78,672
Provision for income taxes:
Tax at Federal statutory rate	$	17,266		$	16,546		$	27,535
Effect of the tax reform on deferred taxes		(11,101	)		—			—
Impact of Partnership loss not subject to federal income taxes		53			741			477
State taxes net of federal benefit		1,864			3,170			5,672
Permanent differences		99			89			80
Change in valuation allowance net of effect of the tax reform		107			115			26
Other		(686	)		(285	)		(52	)
	$	7,602		$	20,376		$	33,738

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2018 and September 30, 2017 using current tax rates are as follows (in thousands):

	September 30,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	6,647		$	5,374
Vacation accrual		2,658			3,542
Pension accrual		4,425			7,455
Allowance for bad debts		2,226			2,166
Insurance accrual		2,425			19,914
Inventory capitalization		350			895
Other, net		1,382			2,242
Total deferred tax assets		20,113			41,588
Valuation allowance		(3,980	)		(3,168	)
Net deferred tax assets	$	16,133		$	38,420
Deferred tax liabilities:
Property and equipment	$	9,783		$	8,001
Fair value of derivative instruments		4,673			1,683
Intangibles		22,883			34,876
Total deferred tax liabilities	$	37,339		$	44,560
Net deferred taxes	$	(21,206	)	$	(6,140	)