Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of components of income (loss) before income taxes

	Years Ended December 31,
	2015		2014		2013
	(In thousands)
Bermuda	$	(62,372)	$	(31,787)	$	(26,492)
United States		10,652		15,684		11,872
Foreign—other		137,156		594,371		90,574
Income before income taxes	$	85,436	$	578,268	$	75,954

Schedule of components of the provision for income taxes attributable to the entity's income (loss) before income taxes

	Years Ended December 31,
	2015		2014		2013
	(In thousands)
Current:
Bermuda	$	—	$	—	$	—
United States		15,199		27,167		14,182
Foreign—other		29,287		55,322		70,436
Total current		44,486		82,489		84,618
Deferred:
Bermuda		—		—		—
United States		8,241		(14,403)		(2,665)
Foreign—other		102,545		230,812		85,045
Total deferred		110,786		216,409		82,380
Income tax expense	$	155,272	$	298,898	$	166,998

Schedule of reconciliation of income tax expense and the reported effective tax rate

	Years Ended December 31,
	2015			2014			2013
	(In thousands)
Tax at Bermuda statutory rate	$	—		$	—		$	—
Foreign income taxed at different rates		94,184			266,993			127,301
Change in valuation allowance(1)		40,600			16,401			(4,065)
Non-deductible and other items(1)		1,885			8,957			36,664
Tax shortfall on equity-based compensation		18,603			6,547			7,098
Total tax expense	$	155,272		$	298,898		$	166,998
Effective tax rate(2)		182	%		52	%		220	%

(1) We took all actions required to voluntarily relinquish the N’dian River Block and Fako Block in Cameroon; therefore, the deferred tax asset and its corresponding valuation allowance were written off in 2013. As of December 31, 2012, we had a $40.1 million deferred tax asset and related valuation allowance, which were written off during 2013. The write off of the deferred tax asset and the related valuation allowance does not have an impact on the income tax expense.

(2) The effective tax rate during the years ended December 31, 2015,  2014 and 2013 was also impacted by losses of $153.5 million, $159.9 million and $178.8 million, respectively, incurred in jurisdictions in which we are not subject to taxes and, therefore, do not generate any income tax benefits.

Schedule of tax effects of significant temporary differences to deferred tax assets and liabilities

	December 31,
	2015		2014
	(In thousands)
Deferred tax assets:
Foreign capitalized operating expenses	$	101,823	$	60,401
Foreign net operating losses		14,719		15,548
Equity compensation		26,095		36,711
Other		22,656		20,657
Total deferred tax assets		165,293		133,317
Valuation allowance		(116,541)		(75,941)
Total deferred tax assets, net		48,752		57,376
Deferred tax liabilities:
Depletion, depreciation and amortization related to property and equipment		(425,183)		(322,895)
Unrealized derivative gains		(92,549)		(92,675)
Total deferred tax liabilities		(517,732)		(415,570)
Net deferred tax asset (liability)	$	(468,980)	$	(358,194)