Income Taxes (Tables)

12 Months Ended

Sep. 30, 2016

Components of Income Tax Expense

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

	Years Ended September 30,
	2016		2015			2014
Current:
Federal	$	18,724	$	28,793		$	19,747
State		5,344		8,143			4,909
Deferred
Federal		7,485		(3,719	)		596
State		2,185		(382	)		63
	$	33,738	$	32,835		$	25,315

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,
	2016			2015			2014
Income from continuing operations before taxes	$	78,672		$	70,391		$	61,399
Provision for income taxes:
Tax at Federal statutory rate	$	27,535		$	24,637		$	21,490
Impact of Partnership loss not subject to federal income taxes		477			3,228			628
State taxes net of federal benefit		5,672			4,922			3,310
Permanent differences		80			78			57
Deferred tax benefit		—			(3,179	)		—
Change in valuation allowance		26			3,027			—
Change in unrecognized tax benefit		—			81			(113	)
Other		(52	)		41			(57	)
	$	33,738		$	32,835		$	25,315

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2016 and September 30, 2015 using current tax rates are as follows (in thousands):

	September 30,
	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	5,791		$	7,367
Vacation accrual		3,367			3,295
Pension accrual		8,549			9,244
Allowance for bad debts		1,728			2,654
Fair value of derivative instruments		—			6,773
Insurance accrual		25,828			24,682
Inventory capitalization		1,128			1,038
Alternative minimum tax credit carryforward		266			266
Other, net		2,512			1,630
Total deferred tax assets		49,169			56,949
Valuation allowance		(3,053	)		(3,027	)
Net deferred tax assets	$	46,116		$	53,922
Deferred tax liabilities:
Property and equipment	$	3,999		$	2,831
Inventory costing method		—			497
Fair value of derivative instruments		788			—
Intangibles		35,976			34,286
Total deferred tax liabilities	$	40,763		$	37,614
Net deferred taxes	$	5,353		$	16,308