Quarterly report pursuant to Section 13 or 15(d)

Property, Buildings and Equipment, Net

Property, Buildings and Equipment, Net
6 Months Ended
Mar. 31, 2015
Property, Buildings and Equipment, Net [Abstract]  
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,
September 30,
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.