Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.8.0.1
Income Taxes
12 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The provision (benefit) for income tax for the years ended September 30, 2017, 2016 and 2015 consists of the following:
(in thousands)
Fiscal Year Ended September 30,
 
2017
 
2016
 
2015
Current:
 

 
 

 
 

Federal income tax
$
102

 
$
244

 
$
(1,348
)
State income tax

 

 
(98
)
Total current
102

 
244

 
(1,446
)
Deferred:
 

 
 

 
 

Federal income tax
(3,286
)
 
4,538

 
10,432

State income tax
(662
)
 
739

 
1,919

Total deferred
(3,948
)
 
5,277

 
12,351

Total provision (benefit) for income taxes
$
(3,846
)
 
$
5,521

 
$
10,905



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,
 
2017
 
2016
 
2015
Tax at the statutory federal rate
$
(4,670
)
 
$
4,382

 
$
9,335

Increase (decrease) resulting from:
 

 
 

 
 

State income taxes, net of federal benefit
(402
)
 
457

 
1,279

Permanent and other reconciling items, net
548

 
773

 
280

Expiration of capital loss carryover
581

 

 

Other
97

 
(91
)
 
11

Total provision (benefit) for income taxes
$
(3,846
)
 
$
5,521

 
$
10,905


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, 2017, and 2016 are presented below:
(in thousands)
September 30,
 
2017
 
2016
Deferred tax assets:
 

 
 

Deferred retirement benefits
$
1,712

 
$
1,620

Inventories
6,435

 
912

Alico-Agri, Ltd. outside basis differences

 
474

Goodwill
33,233

 
36,217

Deferred gain recognition
10,601

 
10,964

Capital loss carryforwards
9,462

 
9,702

Alternative minimum tax credits
293

 
197

Net operating losses
3,160

 
5,844

Intangibles
1,027

 
763

Other
158

 
3

Total deferred tax assets
66,081

 
66,696

 
 
 
 
Deferred tax liabilities:
 
 
 
Revenue recognized from citrus and sugarcane

 
282

Property and equipment
91,995

 
95,149

Accrual-to-cash method
950

 
1,908

Prepaid insurance
220

 
331

Investment in Magnolia
24

 
82

Total deferred tax liabilities
93,189

 
97,752

Net deferred income tax liability
$
(27,108
)
 
$
(31,056
)


As of September 30, 2017, the Company has approximately $8,000,000 federal and approximately $10,100,000 state income tax net operating loss (NOL) carryforwards. The Federal NOL's of approximately $3,600,000 will expire in 2024 and approximately $4,400,000 in 2025. The State NOL’s of approximately $3,600,000 will expire in 2024 and approximately $6,500,000 in 2025. As of September 30, 2017, the Company has approximately $24,600,000 of capital losses, which will expire 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, has not provided a valuation allowance on the deferred tax assets related to these NOL and capital loss carryforwards.