Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
United States and Other Jurisdictions	2016		2015		2014
	(In thousands)
United States	$	(728,589)	$	(264,919)	$	(598,121)
Other jurisdictions		(469,486)		(162,616)		(6,494)
Income (loss) from continuing operations before income taxes	$	(1,198,075)	$	(427,535)	$	(604,615)

Income tax expense (benefit) from continuing operations

	Year Ended December 31,
	2016		2015		2014
	(In thousands)
Current:
U.S. federal	$	(19,937)	$	5,088	$	183,840
Outside the U.S.		31,846		76,550		109,072
State		2,871		8,227		9,401
	$	14,780	$	89,865	$	302,313
Deferred:
U.S. federal	$	(164,297)	$	(182,518)	$	(211,119)
Outside the U.S.		(14,641)		1,757		(9,127)
State		(22,673)		(7,142)		(19,401)
	$	(201,611)	$	(187,903)	$	(239,647)
Income tax expense (benefit)	$	(186,831)	$	(98,038)	$	62,666

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

	Year Ended December 31,
	2016		2015		2014
	(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		(181,426)		(109,101)		(83,747)
Increase (decrease) in valuation allowance		17,865		22,655		(9,934)
Tax reserves and interest		(3,468)		(12,679)		166,347
State income taxes (benefit)		(19,802)		1,087		(10,000)
Income tax expense (benefit)	$	(186,831)	$	(98,038)	$	62,666
Effective tax rate		15.6%		22.9%		(10.4)%

Deferred tax assets and liabilities

	December 31,
	2016		2015
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	1,826,656	$	1,510,354
Equity compensation		36,972		37,633
Deferred revenue		31,082		19,422
Tax credit and other attribute carryforwards		91,680		119,471
Insurance loss reserves		5,118		6,192
Accrued interest		357,285		288,687
Other		115,909		135,185
Subtotal		2,464,702		2,116,944
Valuation allowance		(1,807,728)		(1,560,162)
Deferred tax assets:	$	656,974	$	556,782
Deferred tax liabilities:
Depreciation and amortization for tax in excess of book expense	$	288,086	$	384,513
Variable interest investments		641		718
Other		11,154		16,009
Deferred tax liability	$	299,881	$	401,240
Net deferred tax assets (liabilities)	$	357,093	$	155,542
Balance Sheet Summary:
Net noncurrent deferred asset (1)	$	366,588	$	184,868
Net noncurrent deferred liability		(9,495)		(29,326)
Net deferred asset (liability)	$	357,093	$	155,542

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

Change in unrecognized tax benefits

	Year Ended December 31,
	2016			2015			2014
	(In thousands)
Balance as of January 1	$	188,376		$	201,338		$	47,552
Additions based on tax positions related to the current year		—			384			167,107	(4)
Additions for tax positions of prior years		3,873			—			1,744
Reductions for tax positions for prior years		(11,547)	(1)		(9,234)	(2)		(6,843)
Settlements		(1,447)			(4,112)	(3)		(8,222)	(5)
Balance as of December 31	$	179,255		$	188,376		$	201,338

(1) Includes $7.2 million related to the expiration of statute of limitations in Australia, Algeria and Mexico, a $2.0 million reduction to Trinidad and $2.1 million related to foreign currency translation.

(2) Includes a  $6.0 million reduction in Canada, Trinidad and the U.S., $2.0 million related to foreign currency translation and $1.1 million due to the expiration of statute of limitations.

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

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

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