2019 BBNC Annual Report - Page 70

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 $