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Income Taxes (Notes)
 12 Months Ended
Sep. 30, 2024
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,
202420232022
Federal:
Current$53,318 $27,205 $9,401 
Deferred2,672 4,300 3 
State:
Current14,603 6,370 3,445 
Deferred1,572 886 (34)
Total provision for income taxes$72,165 $38,761 $12,815 
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,
202420232022
Provision at the federal statutory rate$63,980 $33,295 $11,130 
Increase resulting from:
Non-deductible expenses4,285 2,017 1,610 
State income taxes, net of federal deduction11,952 6,338 2,114 
Contingent tax liabilities
— 396 — 
Change in valuation allowance138 — 283 
Other743 — 427 
Decrease resulting from:
Share-based compensation(601)(332)(665)
Noncontrolling interest
(2,811)(2,415)(1,139)
Change in valuation allowance— (52)— 
Contingent tax liabilities(5,521)— (133)
Component 2 goodwill utilization— — (812)
Other— (486)— 
Total provision for income taxes$72,165 $38,761 $12,815 
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:
September 30,
20242023
Deferred income tax assets:
Allowance for credit losses$371 $349 
Accrued expenses19,415 18,167 
Net operating loss carryforward2,701 4,224 
Various reserves2,073 1,718 
Intangible assets390 — 
Partnerships
7,200 7,539 
Share-based compensation1,364 1,298 
Lease asset15,630 14,207 
Other1,068 1,057 
Subtotal50,212 48,559 
Less valuation allowance961 823 
Total deferred income tax assets49,251 47,736 
Deferred income tax liabilities:
Property and equipment10,319 2,231 
Intangible assets— 9,984 
Lease liability15,475 14,102 
Other999 1,036 
Total deferred income tax liabilities26,793 27,353 
Net deferred income tax assets$22,458 $20,383 

In fiscal 2024 and 2023, the valuation allowance on our deferred tax assets increased by $138 and decreased by $52, respectively, which is included in “Provision for income taxes” in our Consolidated Statements of Comprehensive Income.

As of September 30, 2024, we had available approximately $4,493 of federal net tax operating loss carry forward for federal income tax purposes. This carry forward, which may provide future tax benefits, is subject to an annual limitation of $709 under Section 382 of the Internal Revenue Code and will begin to expire in 2029. As of September 30, 2024, we had available approximately $40,085 state net tax operating loss carry forwards, including $1,665 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, 2024, 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 $22,458 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.
 
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,
20242023
Balance at beginning of period$22,347 $21,746 
Additions for positions of prior years1,655 819 
Reduction resulting from the lapse of the applicable statutes of limitations(7,121)(218)
Balance at end of period$16,881 $22,347 

As of September 30, 2024 and 2023, $16,881 and $22,347, respectively, of unrecognized tax benefits would result in a decrease in the provision for income tax expense. We anticipate that approximately $10,792 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 predominantly due to the expiration of the statutes of limitation for unrecognized tax benefits.

We had approximately $1,452 and $697 accrued for the payment of interest and penalties at September 30, 2024 and 2023, 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, 2021, and forward are subject to federal audit as are tax years prior to September 30, 2021, to the extent of unutilized net operating losses generated in those years. The tax years ended September 30, 2020, and forward are subject to state audits as are tax years prior to September 30, 2020, to the extent of unutilized net operating losses generated in those years.