Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
United States and Other Jurisdictions	2017		2016		2015
	(In thousands)
United States	$	(369,162)	$	(728,589)	$	(264,919)
Other jurisdictions		(210,922)		(469,486)		(162,616)
Income (loss) from continuing operations before income taxes	$	(580,084)	$	(1,198,075)	$	(427,535)

Income tax expense (benefit) from continuing operations

	Year Ended December 31,
	2017		2016		2015
	(In thousands)
Current:
U.S. federal	$	(160,761)	$	(19,937)	$	5,088
Outside the U.S.		59,491		31,846		76,550
State		(810)		2,871		8,227
	$	(102,080)	$	14,780	$	89,865
Deferred:
U.S. federal	$	49,020	$	(164,297)	$	(182,518)
Outside the U.S.		(26,684)		(14,641)		1,757
State		(3,226)		(22,673)		(7,142)
	$	19,110	$	(201,611)	$	(187,903)
Income tax expense (benefit)	$	(82,970)	$	(186,831)	$	(98,038)

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

	Year Ended December 31,
	2017		2016		2015
	(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		(98,119)		(181,426)		(109,101)
Increase (decrease) in valuation allowance		29,165		17,865		22,655
Impact of Tax Reform Act		138,635		—		—
Tax reserves and interest		(148,615)		(3,468)		(12,679)
State income taxes (benefit)		(4,036)		(19,802)		1,087
Income tax expense (benefit)	$	(82,970)	$	(186,831)	$	(98,038)
Effective tax rate		14.3%		15.6%		22.9 %

Deferred tax assets and liabilities

	December 31,
	2017		2016
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	1,974,658	$	1,826,656
Equity compensation		10,281		36,972
Deferred revenue		14,005		31,082
Tax credit and other attribute carryforwards		131,640		91,680
Insurance loss reserves		6,626		5,118
Accrued interest		234,033		357,285
Other		80,492		115,909
Subtotal		2,451,735		2,464,702
Valuation allowance		(1,869,490)		(1,807,728)
Deferred tax assets:	$	582,245	$	656,974
Deferred tax liabilities:
Depreciation and amortization for tax in excess of book expense	$	146,448	$	288,088
Variable interest investments		—		641
Other		27,132		11,154
Deferred tax liability	$	173,580	$	299,883
Net deferred tax assets (liabilities)	$	408,665	$	357,091
Balance Sheet Summary:
Net noncurrent deferred tax asset (1)	$	419,003	$	366,586
Net noncurrent deferred tax liability		(10,338)		(9,495)
Net deferred tax asset (liability)	$	408,665	$	357,091

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

Change in unrecognized tax benefits

	Year Ended December 31,
	2017			2016			2015
	(In thousands)
Balance as of January 1	$	179,255		$	188,376		$	201,338
Additions based on tax positions related to the current year		—			—			384
Additions for tax positions of prior years		25,119	(1)		3,873			—
Reductions for tax positions for prior years		(171,171)	(2)		(11,547)	(3)		(9,234)	(4)
Settlements		—			(1,447)			(4,112)	(5)
Balance as of December 31	$	33,203		$	179,255		$	188,376

(1) Includes $12.0 million reduction in Norway, $9.0 million in the U.S. and $2.0 million in Egypt.

(2) Includes $167.0 million related to internal restructuring.

(3) 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.

(4) 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.

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