Income Taxes (Tables)
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12 Months Ended |
Sep. 30, 2016 |
Income Tax Disclosure [Abstract] |
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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 |
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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 |
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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 |
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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 |
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