Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income tax expense was comprised of the following for fiscal years 2018, and 2017:


	2018			2017
	(In thousands)
Current
Federal	$	4,420		$	6,088
State		935			493

		5,355			6,581

Deferred
Federal		(3,150	)		1,606
State		573			120

		(2,577	)		1,726

Total	$	2,778		$	8,307

Principal Reasons for Differences from Federal Statutory Rate

The principal reasons for the differences from the federal statutory rate are as follows:


	2018			2017
Federal tax at statutory rate		24.5	%		35.0	%
State taxes, net of federal benefit		3.6			2.5
Permanent and other differences		0.1			0.2
Adjustment to beginning deferred taxes		-16.7			-0.1
Uncertain tax position allowance		—			-0.5
Amendment of prior period tax return		—			-0.7
Stock-based compensation		0.1			-0.7
Other		0.3			—

Effective tax rate		11.9	%		35.7	%

Tax Effects of Temporary Differences of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of September 30, 2018 and 2017, are presented below:


	2018			2017
	(In thousands)
Current deferred tax assets:
Accrued compensation	$	77		$	130
Stock Compensation		75			140
State taxes		212			399
Capital loss carryforward		7			10

Total deferred tax assets		371			679
Less: disallowed capital loss		(7	)		(10	)

Net deferred tax assets		364			669
Noncurrent deferred tax liabilities:
Property and equipment		(39	)		(24	)
Management contracts		(9,290	)		(12,186	)

Total deferred tax liabilities		(9,329	)		(12,210	)

Net deferred tax liabilities	$	(8,965	)	$	(11,541	)