Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Change in unrecognized tax benefits

	Year Ended December 31,
	2013			2012			2011
	(In thousands)
Balance as of January 1	$	83,950		$	68,848		$	81,174
Additions based on tax positions related to the current year		145			922			1,850
Additions for tax positions of prior years		3,360			16,372	(2)		11,748
Reductions for tax positions for prior years		(30,320	)(1)		(1,174	)		(11,082	)
Settlements		(9,583	)		(1,018	)		(14,842	)
Balance as of December 31	$	47,552		$	83,950		$	68,848

(1)

Includes $21.6 million related to settlements in Mexico, Canada and Algeria and $8.7 million due to the expiration of statutes.

(2)

Includes an unrecognized tax benefit of $10.4 million related to a Mexico audit assessment.

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
	2013			2012		2011
				Revised		Revised
	(In thousands)
United States and Other Jurisdictions
United States	$	(84,032	)	$	193,125	$	205,754
Other jurisdictions		190,192			83,835		309,499
Income (loss) before income taxes from continuing operations	$	106,160		$	276,960	$	515,253

Income tax expense (benefit) from continuing operations

	Year Ended December 31,
	2013			2012			2011
				Revised			Revised
	(In thousands)
Current:
U.S. federal	$	(16,934	)	$	25,802		$	27,649
Outside the U.S.		50,866			82,950			43,732
State		5,933			34,242			38,321
	$	39,865		$	142,994		$	109,702
Deferred:
U.S. federal	$	(71,251	)	$	(79,193	)	$	51,739
Outside the U.S.		(10,288	)		(9,484	)		16,692
State		(13,507	)		(13,331	)		(13,050	)
	$	(95,046	)	$	(102,008	)	$	55,381
Income tax expense (benefit)	$	(55,181	)	$	40,986		$	165,083

Reconciliation of the differences between taxes on income (loss) before income taxes

	Year Ended December 31,
	2013			2012			2011
				Revised			Revised
	(In thousands)
Income tax provision at statutory (Bermuda rate of 0%)	$	—		$	—		$	—
Taxes on U.S. and other international earnings (losses) at greater than the Bermuda rate		(33,277	)		(39,830	)		122,292
Increase (decrease) in valuation allowance		25,592			33,730			4,785
Effect of change in tax rate		—			—			(258	)
Tax reserves and interest		(39,921	)		26,176			12,993
State income taxes		(7,575	)		20,910			25,271
Income tax expense (benefit)	$	(55,181	)	$	40,986		$	165,083
Effective tax rate		(52.0	)%		14.8	%		32.0	%

Deferred tax assets and liabilities

	December 31,
	2013			2012
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	1,658,084		$	1,826,597
Equity compensation		32,219			29,337
Deferred revenue		35,689			33,523
Tax credit and other attribute carryforwards		109,294			110,563
Insurance loss reserves		4,645			10,873
Accrued interest		224,959			55,143
Other		162,678			49,556
Subtotal		2,227,568			2,115,592
Valuation allowance		(1,547,441	)		(1,520,852	)
Deferred tax assets:	$	680,127		$	594,740
Deferred tax liabilities:
Depreciation and amortization for tax in excess of book expense	$	967,689		$	945,888
Variable interest investments		85,979			144,020
Other		17,890			—
Deferred tax liability	$	1,071,558		$	1,089,908
Net deferred assets (liabilities)	$	(391,431	)	$	(495,168	)
Balance Sheet Summary:
Net current deferred asset	$	121,316		$	110,480
Net noncurrent deferred asset(1)		6,491			4,408
Net current deferred liability(2)		(3,075	)		(10,721	)
Net noncurrent deferred liability		(516,161	)		(599,335	)
Net deferred asset (liability)	$	(391,429	)	$	(495,168	)

(1)

This amount is included in other long-term assets.

(2)

This amount is included in accrued liabilities.

NOL carryforwards by year of expiration

	Total		U.S. Federal		Non-U.S.
	(In thousands)
Year Ended December 31,
2014	$	14,538	$	—	$	14,538
2015		12,052		—		12,052
2016		37,089		—		37,089
2017		46,234		—		46,234
2018		55,688		999		54,689
2019		27,418		17,722		9,696
2020		17,065		—		17,065
2021		24,020		—		24,020
2022		475		—		475
2023		5,673		—		5,673
2030		28,173		—		28,173
2031		259,630		189,444		70,186
2032		82,328		—		82,328
2033		94,533		4,778		89,755
Subtotal: expiring NOLs	$	704,916	$	212,943	$	491,973
Non-expiring NOLs		4,924,153		—		4,924,153
Total	$	5,629,069	$	212,943	$	5,416,126