Income Taxes (Tables)
|
12 Months Ended |
Jun. 30, 2015 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income before Income Tax, Domestic and Foreign |
The domestic and foreign components of our income (loss) from continuing operations are as follows for the fiscal years ended:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2015 |
|
2014 |
|
(In thousands) |
United States |
$ |
(24,798 |
) |
|
$ |
4,262 |
|
Australia |
(16,403 |
) |
|
(11,563 |
) |
United Kingdom |
(1,799 |
) |
|
(2,741 |
) |
Net loss from continuing operations attributable to Magellan Petroleum Corporation |
$ |
(43,000 |
) |
|
$ |
(10,042 |
) |
|
| Schedule of Effective Income Tax Rate Reconciliation |
The following reconciles the Company's effective tax rate to the federal statutory tax rate for the fiscal years ended:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2015 |
|
2014 |
|
(In thousands) |
Tax provision computed per federal statutory rate |
$ |
(14,620 |
) |
|
$ |
(3,414 |
) |
State taxes, net of federal benefit |
(1,005 |
) |
|
549 |
|
Foreign rate differential |
908 |
|
|
818 |
|
Non taxable Australian revenue |
— |
|
|
(3,144 |
) |
Goodwill write off |
— |
|
|
(58 |
) |
APB 23 adjustment |
9,632 |
|
|
— |
|
Change in valuation allowance |
2,846 |
|
|
3,476 |
|
Taxable dividends from subsidiaries, net of foreign tax credits |
— |
|
|
3,586 |
|
Foreign tax credit adjustment |
(310 |
) |
|
(761 |
) |
Capital loss adjustment |
1,493 |
|
|
73 |
|
Impact of rate change |
189 |
|
|
291 |
|
Foreign currency translation differential |
1,255 |
|
|
(434 |
) |
Stock based compensation forfeitures |
545 |
|
|
|
Contingent consideration payable write off |
(630 |
) |
|
(710 |
) |
Other items |
(303 |
) |
|
(272 |
) |
Consolidated income tax expense (benefit) |
$ |
— |
|
|
$ |
— |
|
|
| Schedule of Components of Income Tax Provision |
The following summarizes components of our income tax provision for the fiscal years ended:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2015 |
|
2014 |
|
(In thousands) |
Consolidated current income tax provision |
— |
|
|
— |
|
Consolidated deferred income tax provision |
— |
|
|
— |
|
Consolidated income tax provision |
$ |
— |
|
|
$ |
— |
|
|
|
|
|
The consolidated income tax provision is summarized as follows: |
|
|
|
Continuing operations |
$ |
— |
|
|
$ |
— |
|
Discontinued operations |
$ |
— |
|
|
$ |
7,217 |
|
|
|
|
|
Effective tax rate for continuing operations |
— |
% |
|
— |
% |
|
| 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 fiscal years ended:
|
|
|
|
|
|
|
|
|
|
June 30, |
|
2015 |
|
2014 |
|
(In thousands) |
Deferred tax liabilities: |
|
|
|
Land, buildings and equipment |
$ |
— |
|
|
$ |
(4,030 |
) |
Foreign investments |
(7,451 |
) |
|
|
Other items |
(128 |
) |
|
(157 |
) |
Total deferred tax liabilities |
(7,579 |
) |
|
(4,187 |
) |
|
|
|
|
Deferred tax assets: |
|
|
|
Acquisition and development costs |
365 |
|
|
— |
|
Asset retirement obligations |
990 |
|
|
923 |
|
Net operating losses, capital losses, and foreign tax credit carry forwards |
18,521 |
|
|
13,891 |
|
United Kingdom exploration costs and net operating losses |
3,639 |
|
|
3,851 |
|
Investments |
100 |
|
|
2,378 |
|
Stock option compensation |
2,184 |
|
|
2,839 |
|
Australian capitalized legal costs |
116 |
|
|
143 |
|
Other items |
141 |
|
|
141 |
|
Total deferred tax asset |
26,056 |
|
|
24,166 |
|
Valuation allowance |
(18,477 |
) |
|
(19,979 |
) |
Net long term deferred tax asset |
$ |
— |
|
|
$ |
— |
|
|
| Summary of Jurisdictions Subject to Income Tax Examination |
As of June 30, 2015, the Company remains subject to examination in the following major tax jurisdictions for the tax years indicated below:
|
|
|
|
Jurisdiction |
|
Tax Years Subject
to Examination:
|
US Federal |
|
2012 - 2014 |
Colorado |
|
2012 - 2014 |
Maine |
|
2012 - 2014 |
Montana |
|
2010 - 2014 |
Australia |
|
2011 - 2014 |
United Kingdom |
|
2011 - 2014 |
|
| Summary of Operating Loss and Tax Credit Carryforwards |
At June 30, 2015, the Company had net operating loss and foreign tax credit carry forwards for US Federal and State income tax purposes, respectively, which are scheduled to expire periodically as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Net Operating Losses |
|
State Net Operating Losses |
|
Federal Foreign Tax Credit |
|
(In thousands) |
Expires: |
|
|
|
|
|
2017 |
$ |
— |
|
|
$ |
8 |
|
|
$ |
310 |
|
2018 |
— |
|
|
3,103 |
|
|
— |
|
2019 |
— |
|
|
559 |
|
|
1,411 |
|
2020 |
— |
|
|
2,212 |
|
|
624 |
|
2021 |
— |
|
|
27 |
|
|
1,443 |
|
2022 |
— |
|
|
13,309 |
|
|
3,655 |
|
2023 and thereafter |
13,709 |
|
|
— |
|
|
1,668 |
|
Total |
$ |
13,709 |
|
|
$ |
19,218 |
|
|
$ |
9,111 |
|
|