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Income Taxes
3 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The Company’s income tax expense for the three months ended December 31, 2019 and 2018 was $5.4 million and $1.0 million, respectively. The Company's effective tax rate was 24% for the three months ended December 31, 2019 compared to 21% in the prior year period. The Company's effective tax rate for both periods includes an expense for state income taxes and nondeductible expenses, and the tax rate in the prior year period included a tax benefit related to noncontrolling interests.

At December 31, 2019 and September 30, 2019, deferred tax assets, net of deferred tax liabilities, were $15.1 million and $20.7 million, offset by a valuation allowance of $3.3 million at both dates for the portion of the deferred tax assets that the Company has determined is more likely than not to be unrealizable. The valuation allowance was recorded because it is more likely than not that a portion of the Company's state deferred tax assets, primarily net operating loss (NOL) carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset. The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets. Any reversal of the valuation allowance in future periods will impact the effective tax rate.

The Company's unrecognized tax benefits totaled $1.3 million at December 31, 2019, all of which would affect its effective tax rate, if recognized.