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Income Taxes (Tables)
12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Components of Income Tax Expense
The components of income tax benefit (expense) for the years ended September 30, 2020, 2019 and 2018 are as follows:
 Year Ended September 30,
202020192018
Current benefit (expense):
United States federal$11,250 $$125 
State(303)(205)78 
Total current benefit (expense)10,947 (203)203 
Deferred benefit (expense):
United States federal(345)— 2,878 
State— — (66)
Total deferred benefit (expense)(345)— 2,812 
Total income tax benefit (expense)$10,602 $(203)$3,015 
Reconciliation of Tax Rate
The income tax provision differs from the tax that would result from application of the statutory federal tax rate of 21.0% to pre-tax income for the years ended September 30, 2020 and September 30, 2019, and 24.5% to pre-tax income for the year ended September 30, 2018. The reasons for the differences are as follows:
 Year Ended September 30,
202020192018
Income tax benefit at statutory rate$545 $1,610 $8,746 
State income taxes, net of federal tax benefit(246)(165)12 
Change in federal statutory rate— — (12,645)
Decrease (increase) in valuation allowance6,135 (1,514)7,066 
Net operating losses carryback to higher federal statutory rate years4,270 — — 
Other, net(102)(134)(164)
Total income tax benefit (expense)$10,602 $(203)$3,015 
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,
20202019
Gross deferred tax assets:
Right-of-use assets for operating leases$40,515 $— 
Deferred compensation$802 $1,449 
Accrued compensation3,940 2,432 
Accrued tool sets831 694 
Other reserves and accruals2,665 1,884 
Deferred revenue4,406 4,324 
Deferred rent liability— 3,024 
Financing obligation— 10,178 
Net operating losses6,729 12,639 
Tax credit carryforwards293 205 
Charitable contribution carryovers1,527 1,234 
Deductions limited by Section 382764 670 
Valuation allowance(17,449)(25,673)
Total gross deferred tax assets45,023 13,060 
Gross deferred tax liabilities:
Operating lease liability(37,083)— 
Amortization of goodwill and intangibles(2,056)(2,056)
Depreciation and amortization of property and equipment(5,547)(10,470)
Prepaid and other expenses deductible for tax(1,011)(863)
Total gross deferred tax liabilities(45,697)(13,389)
Net deferred tax liabilities$(674)$(329)
Summary of Valuation Allowance
The following table summarizes the activity for the valuation allowance for the years ended September 30 2020, 2019 and 2018:

Year Ended September 30,
202020192018
Balance at beginning of period$25,673 $23,112 $38,407 
Additions (reductions) to income tax(5,947)2,561 (5,555)
Write-offs(1)
(2,277)— (9,740)
Balance at end of period$17,449 $25,673 $23,112 
(1) Of this total, approximately $9.6 million and $2.3 million related to our adoption of ASC 606 as of October 1, 2017 and our adoption of ASC 842 as of October 1, 2019, respectively.