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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Components of income tax expense
The components of income tax expense (benefit) are as follows:
 
 
Year Ended September 30,
2016
 
2015
 
2014
Current expense
 
 
 
 
 
 
United States federal
 
$
(2,043
)
 
$
2,819

 
$
6,425

State
 
285

 
1,043

 
1,335

Total current expense (benefit)
 
(1,758
)
 
3,862

 
7,760

Deferred (benefit) expense
 
 
 
 
 
 
United States federal
 
24,877

 
(5,109
)
 
(3,923
)
State
 
3,051

 
(285
)
 
(127
)
Total deferred (benefit) expense
 
27,928

 
(5,394
)
 
(4,050
)
Total provision for income taxes
 
$
26,170

 
$
(1,532
)
 
$
3,710

Reconciliation of tax rate
The income tax provision differs from the tax that would result from application of the statutory federal tax rate of 35.0% to pre-tax income for the year. The reasons for the differences are as follows:
 
 
Year Ended September 30,
2016
 
2015
 
2014
Income tax expense at statutory rate
 
$
(7,534
)
 
$
(3,738
)
 
$
2,012

State income taxes, net of federal tax benefit
 
(531
)
 
265

 
648

Deferred tax asset write-off related to share based
compensation
 
51

 
1,572

 
828

Increase in valuation allowance
 
34,184

 
128

 
49

Other, net
 

 
241

 
173

Total income tax expense
 
$
26,170

 
$
(1,532
)
 
$
3,710

Components of Deferred tax assets (liabilities)
The components of the deferred tax assets (liabilities) recorded in the accompanying consolidated balance sheets were as follows:
 
 
September 30,
2016
 
2015
Gross deferred tax assets:
 
 
 
 
Deferred compensation
 
$
2,083

 
$
1,784

Reserves and accruals
 
5,417

 
5,395

Accrued tool sets
 
1,188

 
1,460

Deferred revenue
 
22,326

 
19,606

Deferred rent liability
 
1,213

 
1,939

Net operating losses and tax credit carryforwards
 
479

 
393

Depreciation and amortization of property and equipment
 
684

 

Charitable contribution carryovers
 
671

 

Deductions limited by Section 382
 
592

 

Valuation allowance
 
(32,828
)
 
(401
)
Total gross deferred tax assets
 
1,825

 
30,176

Gross deferred tax liabilities:
 
 
 
 
Amortization of goodwill and intangibles
 
(3,141
)
 
(3,140
)
Depreciation and amortization of property and equipment
 

 
(421
)
Prepaid and other expenses deductible for tax
 
(1,825
)
 
(1,828
)
Total deferred tax liabilities, gross
 
(4,966
)
 
(5,389
)
Net deferred tax assets (liabilities)
 
$
(3,141
)
 
$
24,787

Summary of valuation allowance
The following table summarizes the activity for the valuation allowance for the year ended September 30:
 
 
Balance at
Beginning of
Period
 
Additions
(Reductions)
to Income
Tax
Expense
 
Write-offs
 
Balance at
End of
Period
2016
 
$
401

 
$
34,184

 
$
(1,757
)
 
$
32,828

2015
 
$
273

 
$
128

 
$

 
$
401

2014
 
$
224

 
$
49

 
$

 
$
273