Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.3.1.900
Income Taxes
12 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The provision for income tax for the years ended September 30, 2015, 2014 and 2013 consists of the following:
(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:
(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:
 

 
 

 
 

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:
(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:


 
 

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:
(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.