Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of components of income (loss) before income taxes

	Years Ended December 31,
	2016		2015		2014
	(In thousands)
Bermuda	$	(63,749)	$	(62,372)	$	(31,787)
United States		5,083		10,652		15,684
Foreign—other		(235,898)		137,156		594,371
Income (loss) before income taxes	$	(294,564)	$	85,436	$	578,268

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

	Years Ended December 31,
	2016		2015		2014
	(In thousands)
Current:
Bermuda	$	—	$	—	$	—
United States		12,675		15,199		27,167
Foreign—other		102		29,287		55,322
Total current		12,777		44,486		82,489
Deferred:
Bermuda		—		—		—
United States		(3,594)		8,241		(14,403)
Foreign—other		(19,967)		102,545		230,812
Total deferred		(23,561)		110,786		216,409
Income tax expense (benefit)	$	(10,784)	$	155,272	$	298,898

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

	Years Ended December 31,
	2016			2015			2014
	(In thousands)
Tax at Bermuda statutory rate	$	—		$	—		$	—
Foreign income (loss) taxed at different rates		(57,898)			94,184			266,993
Change in valuation allowance and the expiration of fully valued deferred tax assets		29,263			40,600			16,401
Non-deductible and other items		12,347			1,885			8,957
Tax shortfall on equity-based compensation		5,504			18,603			6,547
Total tax expense (benefit)	$	(10,784)		$	155,272		$	298,898
Effective tax rate(1)		4	%		182	%		52	%

(1) The effective tax rate during the years ended December 31, 2016,  2015 and 2014 were impacted by losses of $121.4 million, $153.5 million and $159.9 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,
	2016		2015
	(In thousands)
Deferred tax assets:
Foreign capitalized operating expenses	$	69,804	$	101,823
Foreign net operating losses		36,352		14,719
Equity compensation		30,752		26,095
Other		33,744		22,656
Total deferred tax assets		170,652		165,293
Valuation allowance		(87,517)		(116,541)
Total deferred tax assets, net		83,135		48,752
Deferred tax liabilities:
Depletion, depreciation and amortization related to property and equipment		(526,945)		(425,183)
Unrealized derivative gains		(584)		(92,549)
Total deferred tax liabilities		(527,529)		(517,732)
Net deferred tax liability	$	(444,394)	$	(468,980)