Entity information:

7. Income Taxes.

 

The provision for income taxes for continuing operations for fiscal years ended September 30 consists of the following (in thousands):

          2017       2016       2015  
  Current:                          
    Federal     $ 739       1,247       2,315  
    State       164       334       408  
          903       1,581       2,723  
  Deferred       (434 )     2,067       (588 )
                             
  Total     $ 469       3,648       2,135  

 

 

A reconciliation between the amount of tax shown above and the amount computed at the statutory Federal income tax rate follows (in thousands):

 

      2017       2016       2015  
Amount computed at statutory                        
  Federal rate   $ 781       3,180       1,862  
State income taxes (net of Federal                        
  income tax benefit)     108       440       257  
Excess tax benefits from stock option exercises     (427 )     —         —    
Other, net     7       28       16  
Provision for income taxes   $ 469       3,648       2,135  

 

In this reconciliation, the category “Other, net” consists of changes in permanent tax differences related to non-deductible expenses, special tax rates and tax credits, interest and penalties, and adjustments to prior year estimates.

 

The types of temporary differences and their related tax effects that give rise to deferred tax assets and deferred tax liabilities at September 30, are presented below (in thousands):

 

      2017       2016
Deferred tax liabilities:              
 Property and equipment   $ 11,568       12,156
 Prepaid expenses     121       134
  Gross deferred tax liabilities     11,689       12,290
Deferred tax assets:              
 Insurance liabilities     159       184
 Employee benefits and other     1,485       1,627
Gross deferred tax assets     1,644       1,811
Net deferred tax liability   $ 10,045       10,479

 

The Company has no unrecognized tax benefits.

 

Patriot tax returns in the U.S. and various states that include the Company are subject to audit by taxing authorities. As of September 30, 2017, the earliest tax year that remains open for audit in the Unites States is 2012.