Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.5.0.2
Income Taxes
12 Months Ended
Sep. 30, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The provision for income tax for the years ended September 30, 2016, 2015 and 2014 consists of the following:

(in thousands)
Fiscal Year Ended September 30,
 
2016
 
2015
 
2014
Current:
 

 
 

 
 

Federal income tax
$
244

 
$
(1,348
)
 
$
4,035

State income tax

 
(98
)
 
543

Total current
244

 
(1,446
)
 
4,578

Deferred:
 

 
 

 
 

Federal income tax
4,538

 
10,432

 
6,160

State income tax
739

 
1,919

 
645

Total deferred
5,277

 
12,351

 
6,805

Total provision for income taxes
$
5,521

 
$
10,905

 
$
11,383



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,
 
2016
 
2015
 
2014
Tax at the statutory federal rate
$
4,382

 
$
9,335

 
$
8,117

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes, net of federal benefit
457

 
1,279

 
183

Permanent and other reconciling items, net
773

 
280

 
3,083

Other
(91
)
 
11

 

Total provision for income taxes
$
5,521

 
$
10,905

 
$
11,383



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, 2016, and 2015 are presented below:

(in thousands)
September 30,
 
2016
 
2015
Deferred tax assets:
 

 
 

Deferred retirement benefits
$
1,620

 
$
1,595

Inventories
912

 
230

Alico-Agri, Ltd. outside basis differences
474

 
467

Goodwill
36,217

 
39,081

Deferred gain recognition
10,964

 
11,234

Capital loss carry forward
9,702

 
12,804

Alternative minimum tax credits
197

 

Net operating loss
5,844

 
7,141

Other
765

 
200

Total deferred tax assets
66,695

 
72,752

 
 
 
 
Deferred tax liabilities:
 
 
 
Revenue recognized from citrus and sugarcane
282

 
223

Property and equipment
95,149

 
93,849

Accrual-to-cash method
1,908

 
3,905

Prepaid insurance
331

 
256

Investment in Magnolia
82

 
299

Total deferred tax liabilities
97,752

 
98,532

Net deferred income tax liability
$
(31,057
)
 
$
(25,780
)


Deferred taxes are included in the accompanying Consolidated and Combined Balance Sheets are as follows:

(in thousands)
September 30,
 
2016
 
2015
 
 
 
 
Deferred tax liabilities, current
$
53

 
$
151

Deferred tax liabilities, non-current
31,004

 
25,629

Total deferred tax liabilities
$
31,057

 
$
25,780



As of September 30, 2016, the Company has approximately $14,800,000 federal and approximately $18,300,000 state income tax net operating loss (NOL) carryforwards. The Federal NOL's of approximately $4,200,000 will expire in 2024 and approximately $10,600,000 in 2025. The State NOL’s of approximately $4,200,000 will expire in 2024 and approximately $14,100,000 in 2025. As of September 30, 2016, the Company has approximately $25,200,000 federal and state capital loss carryforwards, with approximately $600,000 expiring in 2017 and approximately $24,600,000 in 2018. The Company believes that it is more likely than not that the benefit from federal and state NOL and capital loss carryforwards will be realized and therefore have not provided a valuation allowance on the deferred tax assets related to these NOL and capital loss carryforwards.