Quarterly report pursuant to Section 13 or 15(d)

Assets Held for Sale

v3.20.4
Assets Held for Sale
3 Months Ended
Dec. 31, 2020
Discontinued Operations And Disposal Groups [Abstract]  
Assets Held for Sale

Note 3. Assets Held for Sale

In accordance with its strategy to dispose of non-core and under-performing assets, the following assets have been classified as assets held for sale at December 31, 2020 and September 30, 2020:

 

(in thousands)

 

Carrying Value

 

 

 

December 31,

 

 

September 30,

 

 

 

2020

 

 

2020

 

East and West Ranch

 

$

1,410

 

 

$

1,366

 

Total Assets Held for Sale

 

$

1,410

 

 

$

1,366

 

 

On December 18, 2020, the Company sold approximately 600 acres of the East Ranch for approximately $2,630,000 and recognized a gain of approximately $2,550,000. Additionally, the Company sold several smaller parcels of the East Ranch during the quarter ended December 31, 2020, which generated a gain of approximately $814,000.

 

On September 10, 2020, the State of Florida purchased, under the Florida Forever program, approximately 10,700 acres of the Alico Ranch for approximately $28,500,000 pursuant to an option agreement entered into between the State of Florida and the Company. The Company recognized a gain of approximately $27,470,000. The Company subsequently used a portion of the net cash proceeds to purchase a like-kind asset in October 2020, which allowed the Company to defer a portion of the tax impact of the gain on sale of the ranch land (see Note 4. Property and Equipment, Net).

 

On March 27, 2020, the Company sold certain sections at the East Ranch for approximately $2,980,000 and realized a gain of approximately $2,748,000. The Company subsequently used substantially all of the net cash proceeds to purchase a like-kind asset in May 2020, which has allowed the Company to defer substantially all of the tax impact of the gain on sale of the ranch land.