INCOME TAXES (Notes)

12 Months Ended

Sep. 30, 2019

INCOME TAXES:

Like other sovereign governments, the Mohegan Tribe and its entities, including the Company, are not subject to United States federal income taxes. However, MGE Niagara is required to file income tax returns in Ontario, Canada, and certain non-tribal entities file income tax returns in various state and local jurisdictions within the United States.

The components of income (loss) before tax provision are as follows (in thousands):



	For the Fiscal Years Ended
	September 30, 2019			September 30, 2018
Domestic	$	3,909		$	138,453
Foreign	(5,256		)	(6,370		)
Total	$	(1,347	)	$	132,083

The components of income tax provision are as follows (in thousands):



	For the Fiscal Years Ended
	September 30, 2019		September 30, 2018
Current:
Federal	$	—	$	—
State	392		475
Foreign	—		—
Total	392		475
Deferred:
Federal	—		—
State	—		—
Foreign	637		—
Total	637		—
Total income tax provision (1)	$	1,029	$	475

____________


(1)	In the accompanying consolidated statement of income for the fiscal year ended September 30, 2018, income tax provision was reclassified from other income (expense) - other, net to conform to fiscal 2019 presentation.

The components of deferred income tax provision result from various temporary differences and relate to items included in the statements of income. The tax effect of these temporary differences are recorded within deferred tax assets and liabilities as follows (in thousands):



	September 30, 2019
Deferred tax assets:
Canadian net operating loss carryforward	$	12,163
Other	528
Total	12,691
Deferred tax liabilities:
Casino Operating and Services Agreement customer contract asset	(13,300		)
Other	(28		)
Total	(13,328		)
Net deferred income tax liability (1)	$	(637	)

____________


(1)	Recorded within other long-term liabilities.

MGE Niagara incurred a net operating loss of $45.9 million for Canadian tax purposes primarily due to the excess of revenues recognized for accounting purposes over actual revenues earned for tax purposes. This net operating loss carryforward will be available to offset future taxable income through December 31, 2029.