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Income Taxes (Tables) | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Components of Income Tax Expense | The components of income tax benefit (expense) for the years ended September 30, 2020, 2019 and 2018 are as follows:
|  | Year Ended September 30,
2020 |  | 2019 |  | 2018
Current benefit (expense): |  |  |  |  |  |
United States federal |  | $ | 11,250 |  |  | $ | 2 |  |  | $ | 125 |
State |  | (303) |  |  | (205) |  |  | 78 |
Total current benefit (expense) |  | 10,947 |  |  | (203) |  |  | 203 |
Deferred benefit (expense): |  |  |  |  |  |
United States federal |  | (345) |  |  | — |  |  | 2,878 |
State |  | — |  |  | — |  |  | (66) |
Total deferred benefit (expense) |  | (345) |  |  | — |  |  | 2,812 |
Total income tax benefit (expense) |  | $ | 10,602 |  |  | $ | (203) |  |  | $ | 3,015 |
Reconciliation of Tax Rate | The income tax provision differs from the tax that would result from application of the statutory federal tax rate of 21.0% to pre-tax income for the years ended September 30, 2020 and September 30, 2019, and 24.5% to pre-tax income for the year ended September 30, 2018. The reasons for the differences are as follows:
| Year Ended September 30,
2020 |  | 2019 |  | 2018
Income tax benefit at statutory rate | $ | 545 |  |  | $ | 1,610 |  |  | $ | 8,746 |
State income taxes, net of federal tax benefit | (246) |  |  | (165) |  |  | 12 |
Change in federal statutory rate | — |  |  | — |  |  | (12,645) |
Decrease (increase) in valuation allowance | 6,135 |  |  | (1,514) |  |  | 7,066 |
Net operating losses carryback to higher federal statutory rate years | 4,270 |  |  | — |  |  | — |
Other, net | (102) |  |  | (134) |  |  | (164) |
Total income tax benefit (expense) | $ | 10,602 |  |  | $ | (203) |  |  | $ | 3,015 |
Components of Deferred Tax Assets (Liabilities) | The components of the deferred tax assets (liabilities) recorded in the accompanying consolidated balance sheets were as follows:
|  | September 30,
2020 |  | 2019
Gross deferred tax assets: |  |  |  |
Right-of-use assets for operating leases |  | $ | 40,515 |  |  | $ | — |
Deferred compensation |  | $ | 802 |  |  | $ | 1,449 |
Accrued compensation |  | 3,940 |  |  | 2,432 |
Accrued tool sets |  | 831 |  |  | 694 |
Other reserves and accruals |  | 2,665 |  |  | 1,884 |
Deferred revenue |  | 4,406 |  |  | 4,324 |
Deferred rent liability |  | — |  |  | 3,024 |
Financing obligation |  | — |  |  | 10,178 |
Net operating losses |  | 6,729 |  |  | 12,639 |
Tax credit carryforwards |  | 293 |  |  | 205 |
Charitable contribution carryovers |  | 1,527 |  |  | 1,234 |
Deductions limited by Section 382 |  | 764 |  |  | 670 |
Valuation allowance |  | (17,449) |  |  | (25,673) |
Total gross deferred tax assets |  | 45,023 |  |  | 13,060 |
Gross deferred tax liabilities: |  |  |  |
Operating lease liability |  | (37,083) |  |  | — |
Amortization of goodwill and intangibles |  | (2,056) |  |  | (2,056) |
Depreciation and amortization of property and equipment |  | (5,547) |  |  | (10,470) |
Prepaid and other expenses deductible for tax |  | (1,011) |  |  | (863) |
Total gross deferred tax liabilities |  | (45,697) |  |  | (13,389) |
Net deferred tax liabilities |  | $ | (674) |  |  | $ | (329) |
Summary of Valuation Allowance | The following table summarizes the activity for the valuation allowance for the years ended September 30 2020, 2019 and 2018:
|  | Year Ended September 30,
|  | 2020 |  | 2019 |  | 2018
Balance at beginning of period |  | $ | 25,673 |  |  | $ | 23,112 |  |  | $ | 38,407 |
Additions (reductions) to income tax |  | (5,947) |  |  | 2,561 |  |  | (5,555) |
Write-offs(1) |  | (2,277) |  |  | — |  |  | (9,740) |
Balance at end of period |  | $ | 17,449 |  |  | $ | 25,673 |  |  | $ | 23,112 |
(1) Of this total, approximately $9.6 million and $2.3 million related to our adoption of ASC 606 as of October 1, 2017 and our adoption of ASC 842 as of October 1, 2019, respectively.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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