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INCOME TAXES
 9 Months Ended
Jun. 30, 2012
INCOME TAXES  
INCOME TAXES

8.                                    INCOME TAXES

 

The components of (loss) earnings before income taxes, after adjusting (loss) earnings for non-controlling interests, are as follows:

 

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

June 30,

 

 

 

June 30,

 

 

 

2012

 

 

 

2011

 

 

 

2012

 

 

 

2011

 

Canada

 

$

(689,000

)

 

 

$

1,595,000

 

 

 

$

837,000

 

 

 

$

4,600,000

 

United States

 

(939,000

)

 

 

(393,000

)

 

 

(5,241,000

)

 

 

(2,897,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(1,628,000

)

 

 

$

1,202,000

 

 

 

$

(4,404,000

)

 

 

$

1,703,000

 

 

The components of the income tax (benefit) provision are as follows:

 

 

 

Three months ended

 

 

 

Nine months ended

 

 

 

June 30,

 

 

 

June 30,

 

 

 

2012

 

 

 

2011

 

 

 

2012

 

 

 

2011

 

Current

 

$

(420,000

)

 

 

$

43,000

 

 

 

$

243,000

 

 

 

$

727,000

 

Deferred

 

158,000

 

 

 

357,000

 

 

 

(18,000

)

 

 

552,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(262,000

)

 

 

$

400,000

 

 

 

$

225,000

 

 

 

$

1,279,000

 

 

Barnwell’s effective consolidated income tax rate for the three and nine months ended June 30, 2012, after adjusting (loss) earnings before income taxes for non-controlling interests, was 16% and (5%), respectively, as compared to 33% and 75% for the three and nine months ended June 30, 2011, respectively.

 

Consolidated taxes do not bear a customary relationship to pretax (losses) earnings due mainly to the fact that Canadian income taxes are not sheltered by current period U.S. source losses, Canadian income taxes are not estimated to have a current or future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating loss carryovers generated in the current year periods are not estimated to have any future U.S. tax benefit prior to expiration.

 

In addition, included in the income tax (benefit) provision for the three and nine months ended June 30, 2012 is a $93,000 benefit and included in the income tax provision for the three and nine months ended June 30, 2011 are $116,000 and $265,000 benefits, respectively, from the lapsing of the statute of limitations for uncertain tax positions related to Canadian income taxes.