|12 Months Ended|
Dec. 31, 2011
|Income Taxes [Abstract]|
The Company and its domestic subsidiaries file a consolidated United States income tax return. Certain subsidiaries' operations are also subject to foreign income taxes. Provision for income taxes consists of the following:
The primary differences between the financial statement and tax bases of assets and liabilities at December 31, 2011 and 2010 are as follows: (In thousands)
The Company's unused foreign tax credit will start to expire between the years 2013 and 2021. The alternative minimum tax credits do not expire, and foreign net operating losses ("NOL") are not subject to expiry dates. The NOL for the Company's UK subsidiary can be carried forward indefinitely, while the NOLs for the Company's Gabon and Angola subsidiaries are included in the respective subsidiaries' cost oil accounts, which will be offset against future taxable revenues.
Pretax income (loss) is comprised of the following:
The statutory rate reconciliation is as follows:
At December 31, 2011, the Company was subject to foreign and United States federal taxes only, with no allocations made to state and local taxes.
The following table summarizes the activity to the Company's unrecognized tax benefits:
If recognized, none of the uncertain tax positions would impact the effective rate because they would be offset by valuation allowance.
Our accounting policy is to recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company has no accruals for the payment of interest and penalties.
The following table summarizes the tax years that remain subject to examination by major tax jurisdictions:
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef