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Income Taxes | 12 Months Ended
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Sep. 30, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 12: INCOME TAXES The following table presents the significant components of the income tax provision from continuing operations:
| Fiscal Year Ended September 30,
| 2015 |  | 2014 |  | 2013
| (in thousands)
Current: |  |  |  |  |
Federal | $ | (6,149 | ) |  | $ | 10,060 |  |  | $ | 23,437 |
State and foreign | 2,000 |  |  | (11,132 | ) |  | 593 |
| (4,149 | ) |  | (1,072 | ) |  | 24,030 |
Deferred: |  |  |  |  |
Federal | (5,643 | ) |  | (1,220 | ) |  | (17,689 | )
State and foreign | (16,903 | ) |  | (4,954 | ) |  | 2,756 |
| (22,546 | ) |  | (6,174 | ) |  | (14,933 | )
Total income tax (benefit) expense | $ | (26,695 | ) |  | $ | (7,246 | ) |  | $ | 9,097 |
The following table presents a reconciliation of income taxes calculated at the statutory rate and the provision for income taxes attributable to continuing operations:
| Fiscal Year Ended September 30,
| 2015 |  | 2014 |  | 2013
| (in thousands)
Income taxes (benefit) at the federal statutory rate | $ | (31,798 | ) |  | $ | (3,933 | ) |  | $ | 11,071 |
Non-deductible expense related to incentive stock options | 13 |  |  | — |  |  | — |
State income tax, net of federal benefit | (701 | ) |  | (1,543 | ) |  | 271 |
Change in valuation allowance | 6,055 |  |  | 481 |  |  | 680 |
Federal tax credits | (4,567 | ) |  | (124 | ) |  | (314 | )
Foreign tax credit and valuation allowance | (3,440 | ) |  | (2,174 | ) |  | (3,263 | )
Tax basis balance sheet adjustment | 4,488 |  |  | — |  |  | — |
Effect of permanently reinvesting foreign earnings | 880 |  |  | (445 | ) |  | 86 |
Other | 2,375 |  |  | 492 |  |  | 566 |
Total income tax (benefit) expense | $ | (26,695 | ) |  | $ | (7,246 | ) |  | $ | 9,097 |
Effective tax rate | 29 | % |  | 64 | % |  | 29 | %
The amount of income tax allocated to discontinued operations was a benefit of $9.5 million and $7.3 million during fiscal 2015 and 2014, respectively, and an expense of $10.4 million during fiscal 2013. The following table shows significant components of our deferred tax assets and liabilities:
| September 30,
| 2015 |  | 2014
| (in thousands)
Deferred tax assets: |  |  |
Albemarle & Bond loss carryforward | $ | — |  |  | $ | 4,067 |
Cash Converters International impairment | 10,438 |  |  | — |
Tax over book inventory | 11,402 |  |  | 15,599 |
Accrued liabilities | 31,034 |  |  | 16,536 |
Pawn service charges receivable | — |  |  | 3,450 |
Book over tax depreciation | 4,988 |  |  | — |
Book over tax amortization | — |  |  | 1,066 |
Prepaid expenses | 2,316 |  |  | — |
Stock compensation | 431 |  |  | — |
Foreign tax credit | 4,567 |  |  | — |
Foreign income and dividends | 9,767 |  |  | — |
State and foreign net operating loss carry-forwards | 14,904 |  |  | 198 |
Total deferred tax assets | 89,847 |  |  | 40,916 |
Deferred tax liabilities: |  |  |
Tax over book amortization | 14,507 |  |  | — |
Foreign income and dividends | — |  |  | 476 |
Tax over book depreciation | — |  |  | 8,299 |
Stock compensation | — |  |  | 875 |
Prepaid expenses | — |  |  | 1,388 |
Total deferred tax liabilities | 14,507 |  |  | 11,038 |
Net deferred tax asset | 75,340 |  |  | 29,878 |
Valuation allowance | (6,219 | ) |  | (164 | )
Net deferred tax asset | $ | 69,121 |  |  | $ | 29,714 |
Deferred taxes are not provided for temporary differences of approximately $15.9 million representing losses of non-United States subsidiaries intended to be permanently reinvested outside the United States. We estimate that, upon distribution of our share of these earnings, we would be subject to United States income taxes of approximately $0.9 million as of September 30, 2015. We provided deferred income taxes on all undistributed earnings from Cash Converters International. Any taxes paid to foreign governments on these earnings may be used in whole or in part as credits against the United States tax on any dividends distributed from such earnings. A full valuation allowance was recognized on the net operating loss carryforward of one of our Canadian operations as it is more likely than not that the deferred tax asset will not be realized based on the weight of available evidence. This net operating loss carryforward totaling $20.7 million will expire during the years 2030 to 2036. No valuation allowance was recognized on the net operating loss carryforward totaling $28.9 million of one of our Mexican operations as it is more likely than not that the loss will be fully utilized based on the weight of available evidence. This net operating loss carryforward will expire in 2025. Additionally, we have a $4.6 million foreign tax credit that will expire in 2025 that we expect is more likely than not to be fully utilized based on the weight of available evidence We recognize interest and penalties related to unrecognized tax benefits as “Income tax expense” in our consolidated statements of operations, which were nominal during fiscal 2015, 2014 and 2013. We are subject to United States, Mexico, United Kingdom and Canada income taxes as well as income taxes levied by various state and local jurisdictions. With few exceptions, we are no longer subject to examinations by tax authorities for years before the tax year ended September 30, 2010. Management believes that adequate provisions have been made for any adjustments that may result from tax examinations.

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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=6907707&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=6907707&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=6907707&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=6907707&loc=d3e32537-109319 + Details
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