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Income Taxes | 12 Months Ended
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Sep. 30, 2012
Income Taxes [Abstract] |
Income Taxes | Note 12. Income Taxes The provision for income taxes (benefit) for the years ended September 30, 2012, 2011 and 2010 consists of the following:
(dollars in thousands) |  | Fiscal year ended September 30
|  | 2012 |  | 2011 |  | 2010
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal income tax |  | $ | 3,696 |  |  | $ | 4,141 |  |  | $ | (74 | )
State income tax |  |  | 1,298 |  |  |  | 726 |  |  |  | (869 | )
Total |  |  | 4,994 |  |  |  | 4,867 |  |  |  | (943 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal income tax |  |  | 5,617 |  |  |  | 608 |  |  |  | (901 | )
State income tax |  |  | 362 |  |  |  | (45 | ) |  |  | 643 |
Total |  |  | 5,979 |  |  |  | 563 |  |  |  | (258 | )
Total provision (benefit) for income taxes |  | $ | 10,973 |  |  | $ | 5,430 |  |  | $ | (1,201 | )
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:
(dollars in thousands) |  | Fiscal year ended September 30
|  | 2012 |  | 2011 |  | 2010
Tax at the statutory federal rate |  | $ | 10,312 |  |  | $ | 4,259 |  |  | $ | (620 | )
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal benefit |  |  | 1,051 |  |  |  | 460 |  |  |  | (66 | )
Nontaxable interest and dividends |  |  | - |  |  |  | - |  |  |  | (37 | )
Federal impacts from IRS exam and tax return amendments |  |  | (444 | ) |  |  | 713 |  |  |  | 404 |
Deferred rate adjustment |  |  | (313 | ) |  |  | - |  |  |  | - |
Change in valuation allowance |  |  | - |  |  |  | - |  |  |  | (569 | )
Permanent and other reconciling items, net |  |  | 367 |  |  |  | (2 | ) |  |  | (313 | )
Total provision (benefit from) for income taxes |  | $ | 10,973 |  |  | $ | 5,430 |  |  | $ | (1,201 | )
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, 2012 and 2011 are presented below:
(dollars in thousands) |  | 2012 |  | 2011
Deferred tax assets: |  |  |  |  |  |  |  |
Contribution carry forward |  | $ | - |  |  | $ | 112 |
Deferred retirement benefits |  |  | 1,581 |  |  |  | 1,471 |
Inventories |  |  | 144 |  |  |  | 159 |
Restricted stock compensation |  |  | - |  |  |  | 44 |
Investment in Alico-Agri, Ltd. |  |  | 20,857 |  |  |  | 23,677 |
Capital loss carry forward |  |  | 1,037 |  |  |  | 72 |
Other |  |  | 357 |  |  |  | 139 |
Total deferred tax assets |  |  | 23,976 |  |  |  | 25,674 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Revenue recognized from citrus and sugarcane |  |  | 286 |  |  |  | 72 |
Property and equipment |  |  | 20,826 |  |  |  | 16,753 |
Investment in Magnolia |  |  | 385 |  |  |  | 366 |
Total gross deferred tax liabilities |  |  | 21,497 |  |  |  | 17,191 |
Net deferred income tax asset |  | $ | 2,479 |  |  | $ | 8,483 |
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 at September 30, 2012. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense and in the liability for uncertain tax positions. The IRS examined the returns of Alico, Agri-Insurance and Alico-Agri for the tax years 2005 through 2007. The Company contested issues raised by the IRS during the examinations and pursued resolution through the IRS Appeals process. On May 16, 2012, we finalized an agreement to settle all outstanding issues. All Federal penalties were waived. Federal taxes and interest paid to the IRS as a result of the settlement totaled $613,000 and $225,000, respectively. On October 9, 2012, the Company paid the State of Florida $323,000 for taxes and interest as a result of the IRS settlement. The payment included $318,000 for taxes and $5,000 for interest. The Company has additional pending state interest and penalties totaling $149,000 outstanding as a result of the final settlement amount which were accrued at September 30, 2012. See Note 18. Subsequent Events.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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