INCOME TAXES

12 Months Ended

Sep. 30, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES:

Similar to 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 subject to income taxes in Ontario, Canada, while certain of the Company's non-tribal entities are subject to income taxes in various state and local jurisdictions within the United States.

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

	For the Fiscal Years Ended
	September 30, 2020		September 30, 2019		September 30, 2018
Domestic	$	(124,227)	$	3,909	$	138,453
Foreign	(44,483)		(5,256)		(6,370)
Income (loss) before income tax	$	(168,710)	$	(1,347)	$	132,083

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

	For the Fiscal Years Ended
	September 30, 2020		September 30, 2019		September 30, 2018
Current:
Federal	$	—	$	—	$	—
State	(355)		(392)		(475)
Foreign	—		—		—
Total	(355)		(392)		(475)
Non-current:
Federal	—		—		—
State	—		—		—
Foreign	7,049		(637)		—
Total	7,049		(637)		—
Income tax benefit (provision)	$	6,694	$	(1,029)	$	(475)

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

	September 30, 2020		September 30, 2019
Deferred income tax assets:
Canadian net operating loss carryforward	$	33,364	$	12,163
Right-of-use lease liabilities	95,589		528
Accumulated book depreciation in excess of tax depreciation	6,969		—
Other	158		—
Total	136,080		12,691
Deferred income tax liabilities:
Casino Operating and Services Agreement customer contract asset	(34,251)		(13,300)
Right-of-use lease assets	(95,454)		(28)
Total	(129,705)		(13,328)
Deferred income tax asset (liability) (1)	$	6,375	$	(637)

 ____________

(1)Recorded within other assets, net and other long-term liabilities.

    MGE Niagara incurred a net operating loss of $16.3 million for Canadian tax purposes primarily due to excess depreciation and amortization that was recognized for accounting purposes over actual depreciation and amortization that was claimed for tax purposes. This net operating loss carryforward will be available to offset future taxable income through March 31, 2041.