Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
United States and Other Jurisdictions	2015			2014			2013
	(In thousands)
United States	$	(264,919	)	$	(598,121	)	$	(84,032	)
Other jurisdictions	(162,617		)	(6,494		)	190,192
Income (loss) from continuing operations before income taxes	$	(427,536	)	$	(604,615	)	$	106,160

Income tax expense (benefit) from continuing operations

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Current:
U.S. federal	$	5,088		$	183,840		$	(16,934	)
Outside the U.S.	76,550			109,072			50,866
State	8,227			9,401			5,933
	$	89,865		$	302,313		$	39,865
Deferred:
U.S. federal	$	(182,518	)	$	(211,119	)	$	(71,251	)
Outside the U.S.	1,757			(9,127		)	(10,288		)
State	(7,142		)	(19,401		)	(13,507		)
	$	(187,903	)	$	(239,647	)	$	(95,046	)
Income tax expense (benefit)	$	(98,038	)	$	62,666		$	(55,181	)

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

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Income tax provision at statutory (Bermuda rate of 0%)	$	—		$	—		$	—
Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate	(109,101		)	(83,747		)	(33,277		)
Increase (decrease) in valuation allowance	22,655			(9,934		)	25,592
Tax reserves and interest	(12,679		)	166,347			(39,921		)
State income taxes (benefit)	1,087			(10,000		)	(7,575		)
Income tax expense (benefit)	$	(98,038	)	$	62,666		$	(55,181	)
Effective tax rate	22.9%			(10.4)%			(52.0)%

Deferred tax assets and liabilities

	December 31,
	2015			2014
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	1,510,354		$	1,470,407
Equity compensation	37,633			35,296
Deferred revenue	19,422			23,116
Tax credit and other attribute carryforwards	119,471			116,833
Insurance loss reserves	6,192			6,235
Accrued Interest	288,687			227,572
Other	135,185			143,302
Subtotal	2,116,944			2,022,761
Valuation allowance	(1,560,162		)	(1,537,507		)
Deferred tax assets:	$	556,782		$	485,254
Deferred tax liabilities:
Depreciation and amortization for tax in excess of book expense	$	384,513		$	760,294
Variable interest investments	718			4,496
Other	16,009			17,953
Deferred tax liability	$	401,240		$	782,743
Net deferred tax assets (liabilities)	$	155,542		$	(297,489	)
Balance Sheet Summary:
Net current deferred asset	$	—		$	118,230
Net noncurrent deferred asset (1)	184,865			30,961
Net current deferred liability (2)	—			(3,677		)
Net noncurrent deferred liability	(29,323		)	(443,003		)
Net deferred asset (liability)	$	155,542		$	(297,489	)

(1) This amount is included in other long-term assets.

(2) This amount is included in accrued liabilities.

Change in unrecognized tax benefits

	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Balance as of January 1	$	203,707		$	47,552		$	83,950
Additions based on tax positions related to the current year	384			167,107		(3)	145
Additions for tax positions of prior years	—			1,744			3,360
Reductions for tax positions for prior years	(7,163		)(1)	(4,473		)	(30,320		)(5)
Settlements	(5,027		)(2)	(8,223		)(4)	(9,583		)
Balance as of December 31	$	191,901		$	203,707		$	47,552

(1) Includes $6.0 million related to settlements in Canada, Trinidad and the U.S. and $1.1 million due to the expiration of statutes of limitations.

(2) Includes $5.0 million related to settlements in Colombia, Ecuador, U.S. and Canada.

(3) Includes $166.0 million related to internal restructuring.

(4) Includes $7.6 million related to settlements in Algeria, Canada and Oman.

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