Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

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

	Years Ended September 30,
	2020			2019			2018
Current:
Federal	$	17,083		$	7,921		$	(6,067	)
State		7,086			4,722			(1,016	)
Deferred
Federal		(2,643	)		(3,168	)		11,052
State		(901	)		(1,958	)		3,633
	$	20,625		$	7,517		$	7,602

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,
	2020			2019		2018
Income from continuing operations before taxes	$	76,543		$	25,154	$	63,107
Provision for income taxes:
Tax at Federal statutory rate	$	16,074		$	5,282	$	17,266
Effect of the tax reform on deferred taxes		—			—		(11,101	)
Impact of Company loss not subject to federal income taxes		—			—		53
State taxes net of federal benefit		5,224			1,626		1,864
Permanent differences		89			345		99
Change in valuation allowance net of effect of the tax reform		(113	)		23		107
Other		(649	)		241		(686	)
	$	20,625		$	7,517	$	7,602

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2020 and September 30, 2019 using current tax rates are as follows (in thousands):

	September 30,
	2020			2019
Deferred tax assets:
Operating lease liabilities	$	29,997		$	—
Net operating loss carryforwards		5,620			6,292
Vacation accrual		2,931			2,774
Pension accrual		3,807			4,504
Allowance for bad debts		1,653			2,235
Insurance accrual		2,283			2,419
Inventory capitalization		641			247
Fair value of derivative instruments		3,556			2,794
Other, net		1,208			—
Total deferred tax assets		51,696			21,265
Valuation allowance		(3,890	)		(4,003	)
Net deferred tax assets	$	47,806		$	17,262
Deferred tax liabilities:
Operating lease right-of-use assets	$	28,492		$	—
Property and equipment		14,305			13,485
Intangibles		19,091			21,883
Other, net		3,145			2,010
Total deferred tax liabilities	$	65,033		$	37,378
Net deferred taxes	$	(17,227	)	$	(20,116	)