Alico, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

The income tax provision for the years ended September 30, 2020, 2019 and 2018 consists of the following:

(in thousands)	Fiscal Year Ended September 30,
	2020			2019		2018
Current:
Federal income tax	$	131		$	7,314	$	1,961
State income tax		(71	)		2,202		384
Total current		60			9,516		2,345

Deferred:
Federal income tax		6,151			2,995		(3,917	)
State income tax		1,452			272		1,962
Total deferred		7,603			3,267		(1,955	)
Income tax provision	$	7,663		$	12,783	$	390

Schedule of income tax provision attributable to income from continuing operations

Income tax provision attributable to income before income taxes differed from the amount computed by applying the statutory federal income tax rate of 21%, 21% and 24.53% to income before income taxes for the fiscal years ended September 30, 2020, September 30, 2019 and September 30, 2018, respectively, as a result of the following:

(in thousands)	Fiscal Year Ended September 30,
	2020			2019		2018
Income tax at the statutory federal rate	$	6,568		$	10,587	$	3,198
Increase (decrease) resulting from:
State income taxes, net of federal benefit		1,217			1,947		857
Permanent and other reconciling items, net		170			166		221
Expiration of capital loss carryforward		—			—		5,634
Reduction in deferred tax liability resulting from the Act		—			—		(9,847	)
State rate change		(156	)		—		—
Stock option cancellation		—			—		347
Other		(136	)		83		(20	)
Income tax provision	$	7,663		$	12,783	$	390

Schedule of deferred tax assets and liabilities

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, 2020, and 2019 are presented below:

(in thousands)	September 30,
	2020			2019
Deferred tax assets:
Deferred retirement benefits	$	—		$	1,325
Goodwill		16,304			18,244
Inventories		813			930
Stock compensation		314			237
Intangibles		508			565
Other		203			168
Total deferred tax assets		18,142			21,469

Deferred tax liabilities:
Property and equipment		56,707			52,551
Investment in Citree		1,016			909
Prepaid insurance		147			134
Total deferred tax liabilities		57,870			53,594
Net deferred income tax liabilities	$	(39,728	)	$	(32,125	)