Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes

Income (loss) from continuing operations before income taxes

	Year Ended December 31,
United States and Other Jurisdictions	2018		2017		2016
	(In thousands)
United States	$	(119,419)	$	(369,162)	$	(728,589)
Other jurisdictions		(399,375)		(210,922)		(469,486)
Income (loss) from continuing operations before income taxes	$	(518,794)	$	(580,084)	$	(1,198,075)

Income tax expense (benefit) from continuing operations

	Year Ended December 31,
	2018		2017		2016
	(In thousands)
Current:
U.S. federal	$	(32,351)	$	(160,761)	$	(19,937)
Outside the U.S.		32,928		59,491		31,846
State		1,811		(810)		2,871
	$	2,388	$	(102,080)	$	14,780
Deferred:
U.S. federal	$	37,476	$	49,020	$	(164,297)
Outside the U.S.		39,518		(26,684)		(14,641)
State		(113)		(3,226)		(22,673)
	$	76,881	$	19,110	$	(201,611)
Income tax expense (benefit)	$	79,269	$	(82,970)	$	(186,831)

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

	Year Ended December 31,
	2018		2017		2016
	(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		49,375		(98,119)		(181,426)
Increase (decrease) in valuation allowance		38,822		29,165		17,865
Impact of Tax Reform Act		—		138,635		—
Tax reserves and interest		(10,626)		(148,615)		(3,468)
State income taxes (benefit)		1,698		(4,036)		(19,802)
Income tax expense (benefit)	$	79,269	$	(82,970)	$	(186,831)
Effective tax rate		(15.3%)		14.3%		15.6%

Deferred tax assets and liabilities

	December 31,
	2018		2017
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	1,967,910	$	1,974,658
Equity compensation		7,038		10,281
Deferred revenue		16,494		14,005
Tax credit and other attribute carryforwards		100,752		131,640
Insurance loss reserves		2,451		6,626
Accrued interest		206,088		234,033
Other		82,167		80,492
Subtotal		2,382,900		2,451,735
Valuation allowance		(1,917,390)		(1,869,490)
Deferred tax assets:	$	465,510	$	582,245
Deferred tax liabilities:
Depreciation and amortization for tax in excess of book expense	$	102,810	$	146,448
Other		23,920		27,132
Deferred tax liability	$	126,730	$	173,580
Net deferred tax assets (liabilities)	$	338,780	$	408,665
Balance Sheet Summary:
Net noncurrent deferred tax asset (1)	$	345,091	$	419,003
Net noncurrent deferred tax liability		(6,311)		(10,338)
Net deferred tax asset (liability)	$	338,780	$	408,665

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

Change in unrecognized tax benefits

	Year Ended December 31,
	2018			2017			2016
	(In thousands)
Balance as of January 1	$	33,203		$	179,255		$	188,376
Additions based on tax positions related to the current year		—			—			—
Additions for tax positions of prior years		308			25,119	(2)		3,873
Reductions for tax positions for prior years		(7,800)	(1)		(171,171)	(3)		(11,547)	(4)
Settlements		—			—			(1,447)
Balance as of December 31	$	25,711		$	33,203		$	179,255

(1) Includes $4.8 million reduction in Mexico, $1.0 million in Saudi Arabia and $2.0 million in Egypt.

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

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

(4) 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.