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Income Taxes | 12 Months Ended
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Sep. 30, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 12. INCOME TAXES: Income before income tax provision consisted of the following components for the fiscal years ended September 30,
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | (Amounts in thousands) |
Income before income tax provision: |  |  |  |  |  |  |  |  |
United States |  | $ | 202,643 |  |  | $ | 254,052 |  |  | $ | 130,535 |
Other |  |  | 3,151 |  |  |  | 7,869 |  |  |  | 16,900 |
Total |  | $ | 205,794 |  |  | $ | 261,921 |  |  | $ | 147,435 |
The components of our provision from income taxes consisted of the following for the fiscal years ended September 30,
|  | 2021 |  |  | 2022 |  |  | 2023 |
|  | (Amounts in thousands) |
Current provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | 38,028 |  |  | $ | 49,380 |  |  | $ | 9,315 |
Foreign |  |  | 1,516 |  |  |  | 1,739 |  |  |  | 3,204 |
State |  |  | 6,527 |  |  |  | 11,004 |  |  |  | 2,307 |
Total current provision |  | $ | 46,071 |  |  | $ | 62,123 |  |  | $ | 14,826 |
Deferred provision: |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,201 |  |  | $ | 1,650 |  |  | $ | 18,723 |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | 543 |  |  |  | 159 |  |  |  | 4,408 |
Total deferred provision |  |  | 4,744 |  |  |  | 1,809 |  |  |  | 23,131 |
Total income tax provision |  | $ | 50,815 |  |  | $ | 63,932 |  |  | $ | 37,957 |
Below is a reconciliation of the statutory federal income tax rate to our effective tax rate for the fiscal years ended September 30,
|  | 2021 |  |  | 2022 |  |  | 2023 |
Federal tax provision |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal benefit |  |  | 3.7 | % |  |  | 3.4 | % |  |  | 3.6 | %
Stock-based compensation |  |  | (0.7 | )% |  |  | (0.6 | )% |  |  | (0.2 | )%
Valuation allowance |  |  | — |  |  |  | — |  |  |  | — |
Foreign rate differential |  |  | 0.1 | % |  |  | — |  |  |  | 0.2 | %
US tax on foreign earnings |  |  | — |  |  |  | — |  |  |  | 1.4 | %
Equity Investment |  |  | — |  |  |  | — |  |  |  | (0.9 | )%
Other |  |  | 0.6 | % |  |  | 0.6 | % |  |  | 0.6 | %
Effective tax rate |  |  | 24.7 | % |  |  | 24.4 | % |  |  | 25.7 | %
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of these temporary differences representing the components of deferred tax assets as of September 30,
|  | 2022 |  |  | 2023 |
|  | (Amounts in thousands) |
Deferred tax assets: |  |  |  |  |  |
Inventories |  | $ | 831 |  |  | $ | 1,010 |
Operating lease liabilities |  |  | 23,323 |  |  |  | 31,103 |
Accrued expenses |  |  | 889 |  |  |  | 1,069 |
Stock-based compensation |  |  | 4,147 |  |  |  | 5,508 |
Interest deductions |  |  | — |  |  |  | 2,413 |
US tax effect of foreign taxes |  |  | — |  |  |  | 4,908 |
Tax loss carryforwards |  |  | 599 |  |  |  | 2,919 |
Other |  |  | 1,154 |  |  |  | 1,826 |
Valuation Allowance |  |  | — |  |  |  | (556 | )
Total long-term deferred tax assets |  | $ | 30,943 |  |  | $ | 50,200 |
Deferred tax liabilities: |  |  |  |  |  |
Depreciation and amortization |  |  | (22,369 | ) |  |  | (69,904 | )
Operating lease right-of-use assets |  |  | (22,733 | ) |  |  | (31,392 | )
Equity method investments |  |  | — |  |  |  | (3,835 | )
Other |  |  | (1,242 | ) |  |  | (1,996 | )
Total long-term deferred tax liabilities |  | $ | (46,344 | ) |  | $ | (107,127 | )
Net deferred tax liabilities |  | $ | (15,401 | ) |  | $ | (56,927 | )
Pursuant to ASC 740, we must consider all positive and negative evidence regarding the realization of deferred tax assets. ASC 740 provides four possible sources of taxable income to realize deferred tax assets: 1) taxable income in prior carryback years, 2) reversals of existing deferred tax liabilities, 3) tax planning strategies and 4) projected future taxable income. As of September 30, 2022, we have no available taxable income in prior carryback years and have not identified prudent and feasible tax planning strategies. Therefore, the recoverability of our deferred tax assets is dependent upon the reversal of existing deferred tax liabilities and generating future taxable income. It is more likely than not that we will generate sufficient taxable income to realize the deferred tax asset not offset by reversing deferred tax liabilities. As of September 30, 2023, the Company has NOL carryforwards of approximately $7.8 million and $7.3 million for state and foreign income tax purposes, respectively, which resulted in a deferred tax asset of $2.9 million, and expire at various dates beginning in 2024. Significant judgment is required in evaluating our uncertain tax positions. Although we believe our tax return positions are sustainable, we recognize tax benefits from uncertain tax positions in the consolidated financial statements only when it is more likely than not that the positions will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits and a consideration of the relevant taxing authority’s administrative practices and precedents. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest and penalties. As of September 30, 2022 and 2023, we had approximately $5.8 million of gross unrecognized tax benefits. The reconciliation of the total amount recorded for unrecognized tax benefits at the beginning and end of the fiscal years ended September 30, 2022 and 2023 is as follows:
|  | 2022 |  |  | 2023 |
|  | (Amounts in thousands) |
Unrecognized tax benefits at the beginning of the year |  | $ | — |  |  | $ | — |
Increases in tax positions for prior years |  |  | — |  |  |  | 5,837 |
Decreases in tax positions for prior years |  |  | — |  |  |  | (4 | )
Unrecognized tax benefits at the end of the year |  | $ | — |  |  | $ | 5,833 |
Consistent with our prior practices, we recognize interest and penalties related to uncertain tax positions as a component of income tax expense. As of September 30, 2022 and 2023, interest and penalties represented approximately $1.4 million of the gross unrecognized tax benefits. We are subject to tax by federal, state, and foreign taxing authorities. Until the respective statutes of limitations expire, we are subject to income tax audits in the jurisdictions in which we operate. We are no longer subject to U.S. federal tax assessments for fiscal years prior to 2020, we are not subject to assessments prior to the 2017 fiscal year for the majority of the State jurisdictions and we are not subject to assessments prior to the 2018 calendar year for the majority of the foreign jurisdictions.

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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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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