Income Taxes (Tables)

12 Months Ended

Sep. 30, 2021

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

	Years Ended September 30,
	2021		2020			2019
Current:
Federal	$	16,077	$	17,083		$	7,921
State		6,237		7,086			4,722
Deferred
Federal		8,263		(2,643	)		(3,168	)
State		3,098		(901	)		(1,958	)
	$	33,675	$	20,625		$	7,517

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,
	2021			2020			2019
Income from continuing operations before taxes	$	121,412		$	76,543		$	25,154
Provision for income taxes:
Tax at Federal statutory rate	$	25,496		$	16,074		$	5,282
State taxes net of federal benefit		7,927			5,224			1,626
Permanent differences		196			89			345
Change in valuation allowance		86			(113	)		23
Other		(30	)		(649	)		241
	$	33,675		$	20,625		$	7,517

Components of Net Deferred Taxes

The components of the net deferred taxes for the years ended September 30, 2021 and September 30, 2020 using current tax rates are as follows (in thousands):

	September 30,
	2021			2020
Deferred tax assets:
Operating lease liabilities	$	29,115		$	29,997
Net operating loss carryforwards		5,590			5,620
Vacation accrual		2,923			2,931
Pension accrual		3,603			3,807
Allowance for bad debts		1,291			1,653
Insurance accrual		2,020			2,283
Inventory capitalization		631			641
Fair value of derivative instruments		—			3,556
Other, net		1,504			1,208
Total deferred tax assets		46,677			51,696
Valuation allowance		(3,976	)		(3,890	)
Net deferred tax assets	$	42,701		$	47,806
Deferred tax liabilities:
Operating lease right-of-use assets	$	27,774		$	28,492
Property and equipment		14,374			14,305
Intangibles		19,591			19,091
Fair value of derivative instruments		6,864			—
Other, net		3,112			3,145
Total deferred tax liabilities	$	71,715		$	65,033
Net deferred taxes	$	(29,014	)	$	(17,227	)