|
Income Taxes (Tables)
|
12 Months Ended |
|
Jun. 30, 2012
|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
The domestic and foreign components of our income (loss) before income taxes are as follows for the years ended:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2012 |
|
2011 |
|
2010 |
|
(In thousands) |
Domestic |
$ |
(6,646 |
) |
|
$ |
(6,780 |
) |
|
$ |
(8,456 |
) |
Foreign |
27,178 |
|
|
(20,516 |
) |
|
9,645 |
|
Net income (loss) after income tax |
$ |
20,532 |
|
|
$ |
(27,296 |
) |
|
$ |
1,189 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following reconciles the Company's effective tax rate to the federal statutory tax rate for the years ended:
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|
|
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|
June 30, |
|
2012 |
|
2011 |
|
2010 |
|
(In thousands) |
Tax provision computed per federal statutory rate |
$ |
6,160 |
|
|
$ |
(8,088 |
) |
|
$ |
356 |
|
State taxes, net of federal benefit |
190 |
|
|
(201 |
) |
|
244 |
|
Foreign rate differential |
76 |
|
|
(271 |
) |
|
(338 |
) |
Non taxable Australian revenue |
(8 |
) |
|
(822 |
) |
|
(953 |
) |
Non deductible warrant and stock related compensation |
— |
|
|
— |
|
|
2,203 |
|
Goodwill write off |
756 |
|
|
— |
|
|
— |
|
Decreases related to lapse of applicable statute of limitations |
1,571 |
|
|
— |
|
|
— |
|
Change in valuation allowance |
9,352 |
|
|
17,135 |
|
|
(346 |
) |
Australian petroleum resource rent tax |
(5,951 |
) |
|
— |
|
|
— |
|
Australian petroleum resource rent tax - income tax effect |
1,785 |
|
|
— |
|
|
— |
|
Magellan capitalized facilitation costs |
— |
|
|
106 |
|
|
201 |
|
Taxable dividends from subsidiaries, net of foreign tax credits |
(1,152 |
) |
|
932 |
|
|
1,690 |
|
Foreign tax credit adjustment |
649 |
|
|
(3,411 |
) |
|
— |
|
Capital loss adjustment |
(3,006 |
) |
|
— |
|
|
— |
|
Additional basis related to the Santos SA |
(18,118 |
) |
|
— |
|
|
— |
|
Impact of rate change |
457 |
|
|
— |
|
|
— |
|
Foreign currency translation differential |
1,375 |
|
|
— |
|
|
— |
|
Other |
(87 |
) |
|
(239 |
) |
|
(411 |
) |
Consolidated income tax (benefit) provision |
$ |
(5,951 |
) |
|
$ |
5,141 |
|
|
$ |
2,646 |
|
|
| Schedule of Components of Income Tax Provision |
Components of our income tax provision can be summarized as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2012 |
|
2011 |
|
2010 |
|
(In thousands) |
Current income tax |
|
|
|
|
|
United States |
|
|
|
|
|
Federal tax |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
State tax (benefit) provision |
— |
|
|
(127 |
) |
|
375 |
|
Foreign tax (benefit) provision |
— |
|
|
(87 |
) |
|
1,349 |
|
Total current income tax (benefit) provision |
— |
|
|
(214 |
) |
|
1,724 |
|
|
|
|
|
|
|
Deferred income tax |
|
|
|
|
|
United States deferred tax (benefit) provision |
— |
|
|
(195 |
) |
|
195 |
|
Foreign tax provision (benefit) |
(5,951 |
) |
|
5,550 |
|
|
727 |
|
Total deferred income tax (benefit) provision |
(5,951 |
) |
|
5,355 |
|
|
922 |
|
Consolidated income tax (benefit) provision |
$ |
(5,951 |
) |
|
$ |
5,141 |
|
|
$ |
2,646 |
|
|
|
|
|
|
|
Effective tax rate |
(29 |
)% |
|
(19 |
)% |
|
223 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
Significant components of the Company's deferred tax assets and liabilities can be summarized as follows for the years ended:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2012 |
|
2011 |
|
(In thousands) |
Deferred tax liabilities |
|
|
|
Land, buildings and equipment |
$ |
(2,767 |
) |
|
$ |
— |
|
Stepped up basis of oil and gas properties |
(550 |
) |
|
(690 |
) |
Australian petroleum resource rent tax - income tax effect |
(1,785 |
) |
|
— |
|
Other |
(261 |
) |
|
(901 |
) |
Total deferred tax liabilities |
(5,363 |
) |
|
(1,591 |
) |
|
|
|
|
Deferred tax assets |
|
|
|
Acquisition and development costs |
— |
|
|
3,234 |
|
Asset retirement obligations |
2,210 |
|
|
2,993 |
|
Net operating losses, capital losses, and foreign tax credit carry forwards |
28,139 |
|
|
12,188 |
|
Australian petroleum resource rent tax |
5,951 |
|
|
— |
|
United Kingdom exploration costs and net operating losses |
3,224 |
|
|
2,358 |
|
Stock option compensation |
1,851 |
|
|
1,673 |
|
Interest |
539 |
|
|
539 |
|
Australian capitalized legal costs |
514 |
|
|
426 |
|
Other |
579 |
|
|
521 |
|
Total deferred tax asset |
43,007 |
|
|
23,932 |
|
Valuation allowance |
(31,693 |
) |
|
(22,341 |
) |
Net long term deferred tax asset |
$ |
5,951 |
|
|
$ |
— |
|
|
| Summary of Jurisdictions Subject to Income Tax Examination |
As of June 30, 2012, the Company remains subject to examination in the following major tax jurisdictions for the tax years indicated below:
|
|
|
|
Jurisdiction |
|
Tax Years Subject to Exam: |
U.S. Federal |
|
2011 |
Montana |
|
2010 - 2011 |
Australia |
|
2008 - 2011 |
|
| Summary of Operating Loss and Tax Credit Carryforwards |
At June 30, 2012, the Company had net operating loss and foreign tax credit carry forwards for U.S. Federal and State Income Tax purposes, respectively, which are scheduled to expire periodically as follows:
|
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|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Losses |
|
Federal Foreign Tax Credit |
|
Paroo USA Federal |
|
State |
|
|
(In thousands) |
Expires |
|
|
|
|
|
2013 |
$ |
230 |
|
|
$ |
— |
|
|
$ |
— |
|
2017 |
— |
|
|
— |
|
|
310 |
|
2018 |
— |
|
|
1,271 |
|
|
— |
|
2019 |
96 |
|
|
— |
|
|
1,411 |
|
2020 |
— |
|
|
— |
|
|
144 |
|
2021 |
25 |
|
|
— |
|
|
886 |
|
2022 |
74 |
|
|
— |
|
|
4,494 |
|
2023 |
3 |
|
|
— |
|
|
— |
|
2024 |
2 |
|
|
— |
|
|
— |
|
2025 |
1 |
|
|
— |
|
|
— |
|
Total |
$ |
431 |
|
|
$ |
1,271 |
|
|
$ |
7,245 |
|
|