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Income Taxes (Notes)
 12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
10.  INCOME TAXES

Federal and state income tax provisions are as follows:
Year Ended September 30,
202120202019
Federal:
Current$2 $(39)$(1,330)
Deferred11,678 9,317 5,908 
State:
Current4,505 3,657 2,312 
Deferred46 (4,195)(227)
Total provision for income taxes$16,231 $8,740 $6,663 

Actual income tax expense differs from income tax expense computed by applying the U.S. federal statutory corporate rate to income (loss) before income taxes as follows:
Year Ended September 30,
202120202019
Provision at the federal statutory rate$17,830 $10,352 $8,430 
Increase resulting from:
Non-deductible expenses658 1,974 1,277 
State income taxes, net of federal deduction3,876 2,662 2,009 
Other— 261 — 
Decrease resulting from:
Share-based compensation(715)(75)(556)
Change in valuation allowance(118)(3,334)(83)
Contingent tax liabilities(2,898)(1,313)(3,967)
Component 2 goodwill utilization(2,241)(1,787)(144)
Other(161)— (303)
Total provision for income taxes$16,231 $8,740 $6,663 

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:
Year Ended September 30,
20212020
Deferred income tax assets:
Allowance for credit losses$541 $592 
Accrued expenses17,134 14,619 
Net operating loss carryforward6,445 22,623 
Various reserves1,285 1,764 
Equity losses in affiliate210 210 
Share-based compensation1,079 897 
Capital loss carryforward1 74 
Lease asset9,634 7,681 
Other2,914 2,444 
Subtotal39,243 50,904 
Less valuation allowance592 710 
Total deferred income tax assets38,651 50,194 
Deferred income tax liabilities:
Property and equipment509 517 
Intangible assets8,765 7,926 
Lease liability9,615 7,677 
Other753 271 
Total deferred income tax liabilities19,642 16,391 
Net deferred income tax assets$19,009 $33,803 

In fiscal 2021 and 2020, the valuation allowance on our deferred tax assets decreased by $118 and $3,334, respectively, which is included in “Provision (benefit) for income taxes” in our Consolidated Comprehensive Income Statement.

As of September 30, 2021, we had available approximately $120,248 of federal net tax operating loss carry forward for federal income tax purposes, including $103,681 from net operating losses on which no tax benefit has been recognized and has not been recorded as a deferred tax asset. This carry forward, which may provide future tax benefits, will begin to expire in 2029. As of September 30, 2021, we had available approximately $61,396 state net tax operating loss carry forwards, including $5,398 from net operating losses on which no tax benefit has been recognized and has not been recorded as a deferred tax asset. The significant majority of these carry forwards, which may provide future tax benefits, will not begin to expire until 2026. 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 the realizability of deferred tax assets at September 30, 2021, 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. As a result, we have recorded a net deferred tax asset of $19,009 on our Consolidated Balance Sheets. We will continue to evaluate the appropriateness of our remaining deferred tax assets and need for valuation allowances on a quarterly basis.
 
As a result of a 2006 reorganization and related adjustment to the book basis in goodwill, we have tax basis in excess of book basis in amortizable goodwill of approximately $3,869. 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 other 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 knowledge 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 step 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 whereby 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 more likely than not of being realized upon ultimate settlement.
 
A reconciliation of the beginning and ending balances of unrecognized tax benefit is as follows:
Year Ended September 30,
20212020
Balance at beginning of period$24,861 $26,294 
Additions for position related to current year59 111 
Additions for positions of prior years20 29 
Reduction resulting from the lapse of the applicable statutes of limitations3,061 1,573 
Balance at end of period$21,879 $24,861 

As of September 30, 2021 and 2020, $21,879 and $24,861, respectively, of unrecognized tax benefits would result in a decrease in the provision for income tax expense. We anticipate that approximately $159 in liabilities for unrecognized tax benefits, including accrued interest, primarily from net operating losses on which no tax benefit has been recognized, may be reversed in the next twelve months. The reversal is predominately due to the expiration of the statutes of limitation for unrecognized tax benefits.

We had approximately $50 and $55 accrued for the payment of interest and penalties at September 30, 2021, and 2020, respectively. We recognize interest and penalties related to unrecognized tax benefits as part of the provision for income taxes.
 
The tax years ended September 30, 2018, and forward are subject to federal audit as are tax years prior to September 30, 2018, to the extent of unutilized net operating losses generated in those years. The tax years ended September 30, 2017, and forward are subject to state audits as are tax years prior to September 30, 2017, to the extent of unutilized net operating losses generated in those years.