Note 11 Supplemental Information

Accrued liabilities include the following:

	March 31,		December 31,
	2013		2012
	(In thousands)
Accrued compensation	$	153,828	$	158,095
Deferred revenue	164,146		148,165
Other taxes payable	42,325		58,590
Workers’ compensation liabilities	22,645		22,645
Interest payable	33,109		90,878
Warranty accrual	6,745		6,436
Litigation reserves	28,421		26,782
Current liability to discontinued operations	60,291		68,961
Professional fees	3,146		2,989
Current deferred tax liability	12,172		10,721
Other accrued liabilities	6,390		5,118
	$	533,218	$	599,380

Investment income (loss) includes the following:

	Three Months Ended March 31,
	2013			2012
	(In thousands)

Interest and dividend income	$	776		$	1,355
Gains (losses) on investments, net	78,645		(1)	18,897		(2)
	$	79,421		$	20,252

(1) Includes realized gains of $76.2 million from short-term and other long-term investments and net realized gains of $2.4 million from our trading securities.

(2) Includes net unrealized gains of $6.0 million from our trading securities and $12.5 million realized gains from short-term and other long-term investments.

Losses (gains) on sales and disposals of long-lived assets and other expense (income), net includes the following:

	Three Months Ended March 31,
	2013			2012
	(In thousands)

Losses (gains) on sales, disposals and involuntary conversions of long-lived assets	$	3,459		$	(1,782	)
Termination of employment contract	45,000		(1)	—
Litigation expenses	6,161			540
Foreign currency transaction losses (gains)	4,317			(455		)
Losses (gains) on derivative instruments	—			(462		)
Other losses (gains)	870			319
	$	59,807		$	(1,840	)

(1) Represents a one-time stock grant valued at $27 million, which vested immediately and $18 million in cash awarded and paid to Mr. Petrello in connection with the termination of his prior employment agreement. See Note 9 — Commitments and Contingencies for additional discussion.

The changes in accumulated other comprehensive income (loss), by component, include the following:

	Gains (losses) on cash flow hedges			Unrealized gains (losses) on available- for-sale			Defined benefit pension plan items			Foreign currency items			Total
	(In thousands (a))
As of January 1, 2012	$	(3,254	)	$	45,179		$	(7,378	)	$	286,717		$	321,264
Other comprehensive income (loss) before reclassifications	—			12,198			—			17,266			29,464
Amounts reclassified from accumulated other comprehensive income (loss)	131			(8,555		)	159			—			(8,265		)
Net other comprehensive income (loss)	131			3,643			159			17,266			21,199
As of March 31, 2012	$	(3,123	)	$	48,822		$	(7,219	)	$	303,983		$	342,463

As of January 1, 2013	$	(2,793	)	$	134,229		$	(7,632	)	$	307,791		$	431,595
Other comprehensive income (loss) before reclassifications	—			10,069			—			(23,265		)	(13,196		)
Amounts reclassified from accumulated other comprehensive income (loss)	94			(75,523		)	173			—			(75,256		)
Net other comprehensive income (loss)	94			(65,454		)	173			(23,265		)	(88,452		)
As of March 31, 2013	$	(2,699	)	$	68,775		$	(7,459	)	$	284,526		$	343,143

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

Unrealized (gains) losses on our available-for-sale securities that were reclassified from net income include the following:

	Three Months Ended March 31,
Line item in consolidated statement of income (loss)	2013			2012
	(In thousands)

Investment income (loss)	$	(75,974	)	$	(12,465	)
Interest expense	(153		)	(191		)
General and administrative expenses	(281		)	(260		)
Total before tax	$	(75,540	)	$	(12,014	)
Tax expense (benefit)	284			3,749
Reclassification adjustment for (gains)/losses included in net income (loss)	$	(75,256	)	$	(8,265	)

In January 2013, we purchased the business of NES for a total cash price of approximately $37.5 million. This business expands our technology and development capability for drilling and measurement tools and services, and is included in our Rig Services operating segment. The purchase price was allocated to the net tangible and intangible assets acquired based on their preliminary fair value estimates as of January 18, 2013. The excess of the purchase price over the fair values of the assets acquired was recorded as goodwill in the amount of $15.8 million.