| Income Taxes |
Income Taxes
The provision for income tax for the years ended September 30, 2015, 2014 and 2013 consists of the following:
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(in thousands) |
Fiscal Year Ended September 30, |
|
2015 |
|
2014 |
|
2013 |
Current: |
|
|
|
|
|
|
|
|
Federal income tax |
$ |
(1,348 |
) |
|
$ |
4,035 |
|
|
$ |
2,508 |
|
State income tax |
(98 |
) |
|
543 |
|
|
459 |
|
Total current |
(1,446 |
) |
|
4,578 |
|
|
2,967 |
|
Deferred: |
|
|
|
|
|
|
|
|
Federal income tax |
10,432 |
|
|
4,666 |
|
|
7,921 |
|
State income tax |
1,919 |
|
|
645 |
|
|
1,141 |
|
Total deferred |
12,351 |
|
|
5,311 |
|
|
9,062 |
|
Total provision for income taxes |
$ |
10,905 |
|
|
$ |
9,889 |
|
|
$ |
12,029 |
|
Income tax provision (benefit) attributable to income from continuing operations differed from the amount computed by applying the statutory federal income tax rate of 35% to pre-tax income as a result of the following:
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(in thousands) |
Fiscal Year Ended September 30, |
|
2015 |
|
2014 |
|
2013 |
Tax at the statutory federal rate |
$ |
9,335 |
|
|
$ |
6,623 |
|
|
$ |
11,086 |
|
Increase (decrease) resulting from: |
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|
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|
|
|
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State income taxes, net of federal benefit |
1,279 |
|
|
183 |
|
|
1,067 |
|
Federal impacts from IRS exam and tax return amendments |
— |
|
|
— |
|
|
19 |
|
Permanent and other reconciling items, net |
280 |
|
|
3,083 |
|
|
(143 |
) |
Other |
11 |
|
|
— |
|
|
— |
|
Total provision for income taxes |
$ |
10,905 |
|
|
$ |
9,889 |
|
|
$ |
12,029 |
|
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2015 and 2014 are presented below:
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|
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(in thousands) |
September 30, |
|
2015 |
|
2014 |
Deferred tax assets: |
|
|
|
|
|
Deferred retirement benefits |
$ |
1,595 |
|
|
$ |
1,619 |
|
Inventories |
230 |
|
|
95 |
|
Prepaid lease |
— |
|
|
833 |
|
Alico-Agri, Ltd. outside basis differences |
467 |
|
|
3,196 |
|
Goodwill |
39,081 |
|
|
— |
|
Deferred gain recognition |
11,234 |
|
|
— |
|
Capital loss carry forward |
12,804 |
|
|
10,492 |
|
Net operating loss |
7,141 |
|
|
2,345 |
|
Other |
200 |
|
|
284 |
|
Total deferred tax assets |
72,752 |
|
|
18,864 |
|
|
|
|
|
Deferred tax liabilities: |
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|
|
|
|
Revenue recognized from citrus and sugarcane |
223 |
|
|
99 |
|
Property and equipment |
93,849 |
|
|
26,901 |
|
Straight-line rent |
— |
|
|
43 |
|
Accrual-to-cash method |
2,410 |
|
|
3,135 |
|
Prepaid insurance |
256 |
|
|
166 |
|
Investment in Magnolia |
299 |
|
|
415 |
|
Total deferred tax liabilities |
97,037 |
|
|
30,759 |
|
Net deferred income tax liability |
$ |
(24,285 |
) |
|
$ |
(11,895 |
) |
Deferred taxes are included in the accompanying consolidated balance sheets are as follows:
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|
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|
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|
|
(in thousands) |
September 30, |
|
2015 |
|
2014 |
|
|
|
|
Deferred tax liabilities, current |
$ |
151 |
|
|
$ |
3,135 |
|
Deferred tax liabilities, non-current |
24,134 |
|
|
8,760 |
|
Total deferred tax liabilities |
$ |
24,285 |
|
|
$ |
11,895 |
|
The Company applies a “more likely than not” threshold to the recognition and non-recognition of tax positions. A change in judgment related to prior years’ tax positions is recognized in the quarter of such change. The Company had no reserve for uncertain tax positions as of September 30, 2015 and 2014, respectively. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and in the liability for uncertain tax positions.
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