11.

Income Taxes

The Company’s components of (loss) income before income taxes are as follows:


	Year Ended September 30,
	2014			2013			2012
(Loss) income before income taxes
Domestic	$	(11,671,000	)	$	23,019,000		$	16,936,000
Foreign		(6,229,000	)		(3,449,000	)		(420,000	)

Total	$	(17,900,000	)	$	19,570,000		$	16,516,000

The Company recorded income tax benefit in the current year of $5,280,000, as compared to expense of $9,090,000 and $5,403,000 in 2013 and 2012, respectively.

Income tax (benefit) expense from operations is comprised of the following:


	Year Ended September 30,
	2014			2013		2012
Current federal (benefit) expense	$	(74,000	)	$	124,000	$	(10,000	)
Current state expense		633,000			693,000		500,000
Foreign tax expense		228,000			—		—
Deferred federal (benefit) expense		(5,489,000	)		6,251,000		4,737,000
Deferred state (benefit) expense		(578,000	)		2,022,000		176,000

Total	$	(5,280,000	)	$	9,090,000	$	5,403,000

The income tax provision differs from the amount computed by applying the statutory federal income tax rate to (losses) income from continuing operations before income taxes as follows:


	Year Ended September 30,
	2014			2013			2012
Tax (benefit) expense computed at statutory rate of 35%	$	(6,265,000	)	$	6,850,000		$	5,781,000
Change in valuation allowance		1,506,000			1,265,000			—
State income tax (benefit) expense, net of federal tax		32,000			1,486,000			433,000
Foreign losses		(1,506,000	)		(987,000	)		—
Transaction costs		332,000			—			(1,353,000	)
Other		621,000			476,000			542,000

Income tax (benefit) expense	$	(5,280,000	)	$	9,090,000		$	5,403,000

The principal components of the Company’s net deferred tax liability are as follows:


	September 30,
	2014			2013
Deferred tax assets:
Deferred revenue	$	297,000		$	1,255,000
Restricted stock		756,000			390,000
Workers’ compensation		148,000			224,000
State tax net operating loss (NOL) carry forward		792,000			802,000
Federal tax NOL carry forward		11,205,000			9,012,000
Foreign tax NOL carry forward		2,441,000			952,000
Self-insurance		286,000			286,000
Canadian start-up costs		337,000			405,000
AMT credit carry forward		312,000			310,000
Other		565,000			166,000

Total gross deferred tax assets		17,139,000			13,802,000
Less valuation allowance		(2,771,000	)		(1,265,000	)

Total net deferred tax assets		14,368,000			12,537,000
Deferred tax liabilities:
Property and equipment		(42,199,000	)		(46,563,000	)

Total deferred tax liabilities		(42,199,000	)		(46,563,000	)

Net deferred tax liability	$	(27,831,000	)	$	(34,026,000	)

Current portion of net deferred tax asset/liability	$	5,977,000		$	1,664,000
Non-current portion of net deferred tax asset/liability		(33,808,000	)		(35,690,000	)

Total net deferred tax liability	$	(27,831,000	)	$	(34,026,000	)

At September 30, 2014, the Company had a gross NOL for U.S. federal income tax purposes of approximately $32,012,000. This NOL will begin to expire in 2031. The Company will carry forward the net federal NOL of approximately $11,205,000. The Company also had net state NOLs that will affect state taxes of approximately $792,000 at September 30, 2014. State NOLs will begin to expire in 2015. Carryback provisions are not allowed by all states, accordingly the state NOLs give rise to a deferred tax asset. Several of these carry forwards are primarily available in states where the Company believes the assets cannot be deemed to be more likely than not realizable. Based on management’s belief that the net operating loss carry forwards are not realizable, a $278,000 valuation allowance was maintained to offset these deferred tax assets as of September 30, 2014. The Company also has Canadian deferred tax assets that will begin to expire in 2032. The Company has recorded a valuation allowance of $2,492,000 against the Canadian deferred tax asset because management believes it is currently not more likely than not to be realizable.

The Company did not have any unrecognized tax benefits in fiscal 2014 or 2013. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. There were no interest and penalties recognized in fiscal 2014 or 2013. In fiscal year 2012, there were interest and penalties included in the Consolidated Statements of Operations and Other Comprehensive (Loss) Income of $(98,000).