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Income Taxes
3 Months Ended
Dec. 31, 2013
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company’s income tax expense for the three months ended December 31, 2013 and 2012 was $66.5 million and $41.6 million, respectively. The effective tax rate was 35.1% for the three months ended December 31, 2013, compared to 38.6% in the same period of 2012. The lower tax rate for the three months ended December 31, 2013 resulted from the Company’s deduction for domestic production activities income. This deduction was limited in the prior year period because of the utilization of the net operating loss (NOL) carryforward.

At December 31, 2013 and September 30, 2013, the Company had deferred tax assets, net of deferred tax liabilities, of $609.6 million and $617.6 million, respectively, offset by valuation allowances of $31.1 million and $31.0 million, respectively. When assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of its deferred tax assets will not be realized. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income in future periods. The Company records a valuation allowance when it determines it is more likely than not that a portion of the deferred tax assets will not be realized.
 
The valuation allowance at both December 31, 2013 and September 30, 2013 relates to the Company's deferred tax assets for state NOL carryforwards, which expire at various times through fiscal 2031, because the Company concluded it was more likely than not that a portion of its state NOLs would not be realized due to the more limited carryforward periods that exist in certain states. At December 31, 2013, the Company determined it was more likely than not that all of the Company’s federal deferred tax assets will be realized.

The accounting for deferred taxes is based upon estimates of future results. Differences between the anticipated and actual outcomes of these future results could result in changes in the Company's estimates of the valuation of its deferred tax assets and related valuation allowances, and could also have a material impact on the Company's consolidated results of operations or financial position. Also, changes in existing federal and state tax laws and tax rates could affect future tax results and the valuation of the Company's deferred tax assets.