Income Taxes (Tables)

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Change in unrecognized tax benefits

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Balance as of January 1,	$	81,174		$	69,048		$	51,819
Additions based on tax positions related to the current year(1)		1,850			1,026			4,787
Additions for tax positions of prior years(1)		11,748			17,060			12,889
Reductions for tax positions of prior years		(11,082	)		(4,709	)		(447	)
Settlements(2)		(14,842	)		(1,251	)		—
Balance as of December 31,	$	68,848		$	81,174		$	69,048

(1) Includes an unrecognized tax benefit of $10.8 million related to an Algeria audit assessment.

(2) Includes $8.6 million related to a settlement of the 1995 to 1997 income tax audits with the Canada Revenue Agency.

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
	2011		2010			2009
	(In thousands)
United States and Other Jurisdictions:
United States	$	178,270	$	(82,723	)	$	(505,264	)
Other jurisdictions		309,499		376,293			574,048
Income (loss) before income taxes from continuing operations	$	487,769	$	293,570		$	68,784

Income tax expense (benefit) from continuing operations

	2011			2010			2009
	(In thousands)
Current:
U.S. federal	$	27,649		$	(137,847	)	$	(15,434	)
Outside the U.S.		43,732			54,779			84,221
State		38,321			5,859			2,671
		109,702			(77,209	)		71,458
Deferred:
U.S. federal		41,540			97,114			(80,353	)
Outside the U.S.		4,413			13,607			(46,603	)
State		(13,050	)		3,438			(8,439	)
		32,903			114,159			(135,395	)
Income tax expense (benefit)	$	142,605		$	36,950		$	(63,937	)

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

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Income tax provision at statutory rate (Bermuda rate of 0%)	$	—		$	—		$	—
Taxes on U.S. and other international earnings (losses) at greater than the Bermuda rate		112,094			18,686			(60,741	)
Increase (decrease) in valuation allowance		(6,450	)		2,407			6,062
Effect of change in tax rate		(258	)		40			(9,248	)
Tax reserves and interest		11,948			8,808			14,652
State income taxes		25,271			7,009			(14,662	)
Income tax expense (benefit)	$	142,605		$	36,950		$	(63,937	)
Effective tax rate		29.2	%		12.6	%		(93.0	)%

Deferred tax assets and liabilities

	December 31,
	2011			2010
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	2,009,318		$	1,848,956
Equity compensation		25,937			19,262
Deferred revenue		32,200			13,428
Tax credit and other attribute carryforwards		90,297			89,141
Insurance loss reserve		24,598			28,537
Other		114,043			62,324
Subtotal		2,296,393			2,061,648
Valuation allowance		(1,485,540	)		(1,514,153	)
Deferred tax assets	$	810,853		$	547,495
Deferred tax liabilities:
Depreciation, amortization and depletion for tax in excess of book expense	$	1,317,256		$	1,123,622
Variable interest investments		116,005			75,204
Other		34,822			54,738
Deferred tax liability		1,468,083			1,253,564
Net deferred assets (liabilities)	$	(657,230	)	$	(706,069	)
Balance Sheet Summary
Net current deferred asset	$	127,874		$	31,510
Net noncurrent deferred asset(1)		13,090			33,694
Net current deferred liability(2)		(269	)		(1,027	)
Net noncurrent deferred liability		(797,925	)		(770,246	)
Net deferred asset (liability)	$	(657,230	)	$	(706,069	)

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

(2) This amount is included in accrued liabilities.

NOL carryforwards by year of expiration

Year Ended December 31,	Total		U.S. Federal		Non-U.S.
	(In thousands)
2012	$	8,778	$		$	8,778
2013		30,348				30,348
2014		3,980				3,980
2015		12,824				12,824
2016		50,176		7,504		42,672
2017		26,601		5,423		21,178
2018		68,888		33,111		35,777
2019		35,986		17,722		18,264
2020		14,612				14,612
2021		7,895				7,895
2027		2,014				2,014
2028		31,237				31,237
2029		184,463		130,842		53,621
2030		533,825		485,648		48,177
2031		626,288		549,795		76,493
Subtotal: expiring NOLs		1,637,915		1,230,045		407,870
Non-expiring NOLs		5,021,678		—		5,021,678
Total	$	6,659,593	$	1,230,045	$	5,429,548