Income tax expense (benefit) differs from the amounts computed by applying the U.S. federal income tax rate of 21%
for 2019 and 31.5% for 2018 and 35.0% for 2017 to pretax income as a result of the following (in thousands):
2019 2018 2017
14,067 17,916 22,631
3,408 (6,062) 2,883
Benefit of permanent differences (524) (466) (1,001)
Tax basis of ANCSA property (630) (42,378) —
(2,698) (3,780) —
— (4,263) —
387 (7,315) (949)
14,010 (46,348) 23,564
Computed expected tax expense
$
State income tax (benefit) expense, net of federal effect
Settlement trust contributions
Tax credits
Other, including change in tax rates
$
The income tax effects of temporary differences that give rise to significant portions of the deferred tax assets and
deferred tax liabilities at March 31, 2019 and 2018 are presented below:
2019
2018
DEFERRED TAX ASSETS:
Net operating loss carryforwards – state
$
2,780 6,287
11,000 22,987
1,404 1,968
Accounts receivable allowance 200 222
Prepaid expenses and other 353 153
Incurred-but-not-reported claims 475 367
Tax basis in ANCSA Lands 759 —
Net operating loss carryforwards – federal
Tax credits
Settlement Trust contribution carryforwards 3,465 —
Accrued liabilities 5,203 4,430
25,639 36,414
TOTAL GROSS DEFERRED TAX ASSETS
DEFERRED TAX LIABILITIES:
Property, plant, and equipment
(13,989) (12,274)
Intangibles (2,480) (2,358)
Unrealized holding gains on investments (3,146) (4,373)
Investment in joint ventures (6,170) (3,313)
(25,785) (22,318)
(146) 14,096
TOTAL GROSS DEFERRED TAX LIABILITIES
NET DEFERRED TAX ASSET (LIABILIT Y)
68
BBNC FY2019 ANNUAL REPORT
$