| Property, Buildings and Equipment, Net |
Note 3. Property, Buildings and Equipment, Net
Property, buildings and equipment consisted of the following at March 31, 2015 and September 30, 2014:
| (in thousands) |
March 31,
2015 |
|
September 30,
2014 |
| |
| Breeding herd |
$ |
10,897 |
|
|
$ |
11,558 |
|
| Buildings |
|
21,010 |
|
|
|
16,052 |
|
| Citrus trees |
|
242,278 |
|
|
|
66,886 |
|
| Equipment and other facilities |
|
58,412 |
|
|
|
55,696 |
|
| |
| Total depreciable properties |
|
332,597 |
|
|
|
150,192 |
|
| Less accumulated depreciation and depletion |
|
(72,158 |
) |
|
|
(63,031 |
) |
| |
| Net depreciable properties |
|
260,439 |
|
|
|
87,161 |
|
| Land and land improvements |
|
123,007 |
|
|
|
39,672 |
|
| |
| Net property, buildings and equipment |
$ |
383,446 |
|
|
$ |
126,833 |
|
Land Purchase
Silver Nip Citrus purchased approximately 1,500 acres of citrus groves that included land, trees and fruit inventory as well as irrigation and other equipment on September 4, 2014. The purchase price was approximately $17,600,000 which was funded through cash plus additional financing of $11,000,000 in term debt (see “Note 7. Long -Term Debt” in the Notes to the Condensed Combined Consolidated Financial Statements (Unaudited)).
Land Sale
Certain Silver Nip Citrus land with a cost of $2,832,159 was classified as held for sale as of September 30, 2014. It was sold during the six month period ended March 31, 2015 resulting in a gain on sale of assets of $2,926,553.
Asset Impairment
The Company recorded an impairment loss of approximately $541,000 during the quarter ended March 31, 2015 on property classified as Assets Held for Sale. The Company entered into a sales contract on February 17, 2015, which triggered the impairment of the property based on the negotiated sales price. The property was closed on April 3, 2015 and the Company received approximately $1,509,000 in net sales proceeds.
|