Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

On February 22, 2013, the Company closed on the sale of Carrizo UK, and all of its interest in the Huntington Field discovery, including a 15% non-operated working interest and certain overriding royalty interests, to a subsidiary of Iona Energy for an agreed-upon price of $184.0 million, including the assumption and repayment by Iona Energy of the $55.0 million of borrowings outstanding under Carrizo UK’s senior secured multicurrency credit facility as of the closing date. The liabilities of discontinued operations of $20.8 million and $28.3 million as of September 30, 2014 and December 31, 2013, respectively, relate to an accrual for estimated future obligations related to the sale. See “Note 2. Summary of Significant Accounting Policies—Use of Estimates” for further discussion of estimates and assumptions that may affect the reported amounts of liabilities related to the sale of Carrizo UK.

The following table summarizes the amounts included in income (loss) from discontinued operations, net of income taxes presented in the consolidated statements of income for the three and nine months ended September 30,2014 and 2013:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(In thousands)
Revenues		$—			$—			$—			$—
Costs and Expenses
General and administrative	259			408			1,162			709
Accretion related to asset retirement obligations	—			—			—			36
Gain on sale of discontinued operations	—			—			—			(37,294		)
Increase (decrease) in estimated future obligations	(2,144		)	1,187			(696		)	(1,378		)
Loss on derivatives, net	16			18			34			93
Other (income) expense, net	—			(106		)	—			(438		)
Income (Loss) From Discontinued Operations Before Income Taxes	1,869			(1,507		)	(500		)	38,272
Income tax (expense) benefit	(1,077		)	316			(248		)	(14,673		)
Income (Loss) From Discontinued Operations, Net of Income Taxes		$792			($1,191	)		($748	)		$23,599

Income Taxes

Carrizo UK is a disregarded entity for U.S. federal income tax purposes. Accordingly, the income tax (expense) benefit reflected above includes the Company’s U.S. deferred income tax (expense) benefit associated with the income (loss) from discontinued operations before income taxes. The related U.S. deferred tax assets and liabilities have been classified as deferred income taxes of continuing operations in the consolidated balance sheets.