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Income Taxes | 12 Months Ended
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Sep. 30, 2017
Income Taxes [Abstract] |
Income Taxes | 9. INCOME TAXES Federal and state income tax provisions for continuing operations are as follows:
|  |  | Years Ended September 30,
|  |  | 2017 |  | 2016 |  | 2015
Federal: |  |  |  |  |  |  |  |  |
| Current |  | $ | (3,092) |  | $ | 762 |  | $ | 417
| Deferred |  |  | 6,384 |  |  | (97,093) |  |  | (564)
State: |  |  |  |  |  |  |  |  |
| Current |  |  | 1,432 |  |  | 952 |  |  | 729
| Deferred |  |  | 487 |  |  | (1,738) |  |  | 79
|  |  | $ | 5,211 |  | $ | (97,117) |  | $ | 661
Actual income tax expense differs from income tax expense computed by applying the U.S. federal statutory corporate rate of 35 percent t o income (loss) before income taxes as follows:
|  |  | Years Ended September 30,
|  |  | 2017 |  | 2016 |  | 2015
Provision (benefit) at the statutory rate |  | $ | 6,582 |  | $ | 8,316 |  | $ | 6,139
Increase resulting from: |  |  |  |  |  |  |  |  |
| Alternative minimum tax |  |  | - |  |  | - |  |  | 417
| Non-deductible expenses |  |  | 966 |  |  | 1,557 |  |  | 753
| Long-lived assets |  |  | - |  |  | - |  |  | 69
| State income taxes, net of federal deduction |  |  | 1,003 |  |  | 1,105 |  |  | 937
| Change in valuation allowance |  |  | 142 |  |  |  |  |  |
| Contingent tax liabilities |  |  | - |  |  | - |  |  | 51
| Other |  |  | 17 |  |  | - |  |  | 54
Decrease resulting from: |  |  |  |  |  |  |  |  |
| Change in valuation allowance |  |  | - |  |  | (108,987) |  |  | (7,034)
| Valuation allowance adjustment - acquisitions |  |  | - |  |  | - |  |  | (725)
| Contingent tax liabilities |  |  | (3,499) |  |  | (96) |  |  | -
| Other |  |  | - |  |  | 988 |  |  | -
|  |  | $ | 5,211 |  | $ | (97,117) |  | $ | 661
Deferred income tax provisions result from temporary differences in the recognition of income and expenses for financial reporting purposes and for income tax purposes. The income tax effects of these temporary differences, representing deferred income tax assets and liabilities, result principally from the following:
|  |  |  | Years Ended September 30,
|  |  |  | 2017 |  | 2016
Deferred income tax assets: |  |  |  |  |  |
| Allowance for doubtful accounts |  | $ | 243 |  | $ | 280
| Accrued expenses |  |  | 12,915 |  |  | 10,729
| Net operating loss carryforward |  |  | 77,497 |  |  | 86,280
| Various reserves |  |  | 1,807 |  |  | 1,410
| Equity losses in affiliate |  |  | 82 |  |  | 84
| Share-based compensation |  |  | 1,570 |  |  | 1,012
| Capital loss carryforward |  |  | 337 |  |  | 338
| Other |  |  | 3,195 |  |  | 3,185
Subtotal |  |  | 97,646 |  |  | 103,318
Less valuation allowance |  |  | 2,366 |  |  | 2,224
Total deferred income tax assets |  | $ | 95,280 |  | $ | 101,094
Deferred income tax liabilities: |  |  |  |  |  |
| Property and equipment |  | $ | 2,019 |  | $ | 1,517
| Intangible assets |  |  | 6,548 |  |  | 5,629
| Other |  |  | 502 |  |  | 399
Total deferred income tax liabilities |  |  | 9,069 |  |  | 7,545
Net deferred income tax assets |  | $ | 86,211 |  | $ | 93,549
In fiscal 2017, the valuation allowance on our deferred tax assets increased by $142, which is included in “Provision (benefits) for income taxes” in our Consolidated Comprehensive Income Statement. In 2002, we adopted a tax accounting method change that allowed us to deduct goodwill for income tax purposes that had previously been classified as non-deductible. The accounting method change resulted in additional amortizable tax basis in goodwill. We believe the realization of the additional tax basis in g oodwill is not more likely than not and have not recorded a deferred tax asset. A lthough a deferred tax asset has not been recorded through September 30, 2017, we have derived a cumulative cash tax reduction of $11,487 from the change in tax accounting method and the subsequent amortization of the additional tax goodwill. In addition, the amortization of the additional tax goodwill has resulted in additional federal net operating loss carry forwards of $142,052 and state net operating loss carry forwards of $6,188. We believe the realization of the additional net operating loss carry forwards is not more likely than not and have not recorded a deferred tax asset. We have a tax basis of $3,411 in additional tax goodwill that will be amortized during the year end ed September 30, 2018. As of September 30, 2017, we had available approximately $378,274 of federal net t ax operating loss carry forward for federal income tax purposes, including $142,052 resulting from the additional amortization of tax goodwill. This carry forward, which may provide future tax benefits, will begin to expire in 20 26. On May 12, 2006, we had a change in ownership as defined in Internal Revenue Code Section 382. As such, ou r utilization after the change in control date of our net operating loss in existence as of the change of control date was subject to Section 382 limitations for federal income taxes and some state income taxes. The annual limitation under Section 382 on t he utilization of federal net operating losses was approximately $20,000 for the first five tax years subsequent to the change in ownership and $16,000 thereafter. Approximately $300,400 of federal net operating losses will not be subject to this limitatio n. Also, after applying the Section 382 limitation to available state net operating loss carry forwards, we had available approximately $77,373 state net tax operating loss carry forwards, including $6,188 resulting from the additional amortization of tax goodwill which begin s to expire as of September 30, 2018. We have provided valuation allowances on all net operating losses where it is determined it is more likely than not that they will expire without being utilized. In assessing t he realizability of deferred tax assets at September 30, 2017, we considered whether it was more likely than not that some portion or all of the deferred tax assets will not be realized. Our realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which these temporary differences become deductible. We believe that $6,347 and $427 of federal and state deferred tax assets, respectively, will be realized by offsetting reversing deferred tax liabilities. In addition, we have $587 of net state deferred tax assets that we expect will be realized, and therefore valuation allowances were not provided for these assets. As a result, we have recorded a net deferred tax asset of $86,211 on our Consolidated Balan ce Sheets. We will continue to evaluate the appropriateness of our remaining deferred tax assets and need for valuation allowances on a quarterly basis. Further, any future reduction in the federal statutory tax rate could result in a charge to reduce the book value of the net deferred tax assets recorded on our Consolidated Balance Sheet. As a result of the reorganization and related adjustment to the book basis in goodwill, we have tax basis in excess of book basis in amortizable goodwill of approximate ly $24,012. The tax basis in amortizable goodwill in excess of book basis is not reflected as a deferred tax asset. To the extent the amortization of the excess tax basis results in a cash tax benefit, the benefit will first go to reduce goodwill, then oth er long-term intangible assets, and then tax expense. GAAP requires financial statement reporting of the expected future tax consequences of uncertain tax return reporting positions on the presumption that all relevant tax authorities possess full knowle dge of those tax reporting positions, as well as all of the pertinent facts and circumstances, but it prohibits discounting of any of the related tax effects for the time value of money. The evaluation of a tax position is a two-step process. The first ste p is the recognition process to determine if it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authority, based on the technical merits of the position. The second step is a measurement process wher eby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit/expense to recognize in the financial statements. The tax position is measured at the largest amount of benefit/expense that is mo re likely than not of being realized upon ultimate settlement. A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows:
| Years Ended September 30,
| 2017 |  | 2016 |
Balance at October 1, | $ | 55,867 |  | $ | 55,963 |
Additions for position related to current year |  | 207 |  |  | - |
Additions for positions of prior years |  | - |  |  | - |
Reduction resulting from the lapse of the applicable statutes of limitations |  | 3,707 |  |  | 27 |
Reduction resulting from positions of prior years |  | 399 |  |  | 69 |
Reduction resulting from settlement of positions of prior years |  | - |  |  | - |
Balance at September 30, | $ | 51,968 |  | $ | 55,867 |
As of September 30, 2017, and 2016, $51,968 and $55,867, respectively, of unrecognized tax benefit s would result in a decrease in the provision for income tax expense, of which $50,180 and $50,581 for each of those years, respectively, relates to net operating loss from additional goodwill resulting from the tax accounting method change discussed above. We believe the realization of the net operating losses resulting from the tax accounting method change is not more likely than not and h ave not recorded a deferred tax asset. However, if we are partially or fully successful in defending our tax accounting method change we may realize a portion or all of the deferred tax asset related to this net operating loss. We anticipate that approxima tely $3,284 in liabilities for unrecognized tax benefits, including accrued interest, may be reverse d in the next twelve months. The reversal is predominately due to the expiration of the statutes of limitatio n for unrecognized tax benefits. We had approximately $14 and $1 1 accrued for the payment of interest and penalties at September 30, 2017, and 2016, res pectively. We recognize interest and penalties related to unrecognized tax benefits as part of the provision for income taxe s. We are currently not under federal audit by the Internal Revenue Service. The tax years ended September 30, 2014, and forward are subject to federal audit as are tax years prior to September 30, 2014, to the extent of unutilized net operating losses generated in those years. The tax years ended September 30, 2013, and forward are subject to state audits as are tax years prior to September 30, 2013, to the extent of unutilized net opera ting losses generated in those years.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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