XML 54 R30.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following:

	Berry Corp. (Successor)													Berry LLC (Predecessor)
	Year Ended December 31, 2019				Year Ended December 31, 2018				Ten Months Ended December 31, 2017					Two Months Ended February 28, 2017
	(in thousands)
Current taxes:
Federal	$	—			$	(465	)		$	465				$	—
State	227				(446		)		450					221
Total current taxes	227				(911		)		915					221
Deferred taxes:
Federal	(36,756		)		33,227				1,888					—
State	(21		)		10,719				—					9
Total deferred taxes	(36,777		)		43,946				1,888					9
Total current and deferred taxes	$	(36,550	)		$	43,035			$	2,803				$	230

Schedule of Effective Tax Rate

A reconciliation of the federal statutory tax rate to the effective tax rate is as follows:

	Berry Corp. (Successor)										Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017				Two Months Ended February 28, 2017
Federal statutory rate	21.0	%		21.0	%		35.0	%			35.0	%
State, net of federal tax benefit	8.9	%		6.3	%		7.2	%			—	%
Effect of permanent differences	0.2	%		(0.6	)%		(0.4	)%			—	%
Tax credits and federal return to provision	(546.4	)%		—	%		—	%			—	%
State return to provision	(6.6	)%		—	%		—	%			—	%
Tax reform—rate change(1)	—	%		—	%		(14.7	)%			—	%
Income excluded from nontaxable entities	—	%		—	%		—	%			(35.0	)%
Change in valuation allowance	—	%		(4.1	)%		(42.4	)%			—	%
Effective tax rate	(522.9	)%		22.6	%		(15.3	)%			—	%

__________

(1) For the ten months ended December 31, 2017, includes the tax rate reduction. The impact of the rate change is fully offset in the “Change in valuation allowance” item.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are as follows:

	Berry Corp. (Successor)
	December 31, 2019				December 31, 2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	14,542			$	14,310
Accruals	12,218				2,993
Asset retirement obligations	41,382				26,383
Tax credits and federal return to provision	47,803				—
Interest limitation carryforward	13,892				7,486
Other	5,154				2,033
Total deferred tax assets	134,991				53,205
Deferred tax liabilities:
Book tax differences in property basis	(143,896		)		(95,348		)
Derivative instruments	(152		)		(3,692		)
Total deferred tax liabilities	(144,048		)		(99,040		)
Net deferred tax asset (liability)	$	(9,057	)		$	(45,835	)

Summary of Unrecognized Tax Benefits

	Berry Corp. (Successor)
	December 31, 2019				December 31, 2018
	(in thousands)
Unrecognized tax benefits - January 1	$	—			$	—
Prior year - increase	6,720				—
Current year - increase	7,172				—
Unrecognized tax benefits - December 31	$	13,892			$	—

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration