Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Components of Income Tax Expense

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

	Years Ended September 30,
	2014		2013		2012
Current:
Federal	$	19,747	$	14,486	$	2,168
State		4,909		3,759		1,495
Deferred		659		1,676		12,913
	$	25,315	$	19,921	$	16,576

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,
	2014			2013			2012
Income from continuing operations before taxes	$	61,399		$	49,827		$	42,565
Provision for income taxes:
Tax at Federal statutory rate	$	21,490		$	17,440		$	14,898
Impact of Partnership loss not subject to federal income taxes		628			97			697
State taxes net of federal benefit		3,310			3,192			2,801
Permanent differences		57			37			28
Change in valuation allowance		—			(658	)		(14	)
Change in unrecognized tax benefit		(113	)		55			(1,669	)
Other		(57	)		(242	)		(165	)
	$	25,315		$	19,921		$	16,576

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2014 and September 30, 2013 using current tax rates are as follows (in thousands):

	September 30,
	2014		2013
Deferred tax assets:
Net operating loss carryforwards	$	5,490	$	6,760
Vacation accrual		2,970		2,580
Pension accrual		2,964		2,672
Allowance for bad debts		3,661		3,158
Fair value of derivative instruments		5,000		2,314
Insurance accrual		22,823		21,073
Inventory capitalization		865		941
Alternative minimum tax credit carryforward		261		261
Other, net		2,060		1,906
Total deferred tax assets	$	46,094	$	41,665
Deferred tax liabilities:
Property and equipment	$	2,383	$	2,225
Inventory costing method		256		—
Intangibles		30,495		26,285
Total deferred tax liabilities	$	33,134	$	28,510
Net deferred taxes	$	12,960	$	13,155

Tax Benefits Recorded as a Benefit to Effective Tax Rate

Tax Uncertainties (in thousands)

Balance at September 30, 2013	$	784
Additions based on tax positions related to the current year		—
Additions for tax positions of prior years		116
Reduction for tax positions of prior years		—
Reductions due to lapse in statue of limitations/settlements		—
Balance at September 30, 2014	$	900