INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Significant components of income taxes attributable to continuing operations

The significant components of income taxes attributable to continuing operations consisted of (in thousands):



	2013			2012			2011
Current:
U.S.	$	(38,025	)	$	(69,934	)	$	(39,708	)
Non - U.S.	31,932			23,931			15,368
State	(5,141		)	100			566
Current benefit	(11,234		)	(45,903		)	(23,774		)
Deferred:
U.S.	20,827			45,794			27,401
Non - U.S.	(930		)	(19,720		)	(9,286		)
Deferred provision	19,897			26,074			18,115
Total provision (benefit)	$	8,663		$	(19,829	)	$	(5,659	)

Income tax expense (benefit), income tax reconciliation

Differences between our provision for income taxes and the amount determined by applying our applicable statutory rate to income before income taxes are set forth below (dollars in thousands):



	2013			2012			2011
Statutory rate	23.3		%	24.5		%	35		%
Tax at statutory rate	$	60,738		$	44,950		$	45,528
Increase (decrease) due to:
Capitalized interest transactions	(11,317		)	(39,204		)	—
Foreign rate differential	(27,078		)	(27,591		)	(36,311		)
Deferred intercompany gain/loss	(9,062		)	(8,749		)	(12,629		)
Change in valuation allowance	8,381			2,806			—
Prior period adjustments	(9,837		)	4,482			(1,398		)
Unrecognized tax benefits	17,544			2,463			3,895
Excess compensation	1,022			1,432			1,447
Foreign taxes of subsidiaries for which U.S. federal income taxes have been provided	9,155			—			—
Foreign tax credits	(31,078		)	(1,632		)	(10,409		)
Extraterritorial income exclusion	(43		)	(45		)	(522		)
Other, net	238			1,259			4,740
Total provision (benefit)	$	8,663		$	(19,829	)	$	(5,659	)

Deferred tax assets and liabilities

Temporary differences and carryforwards which gave rise to deferred tax assets and liabilities at December 31 were as follows (in thousands):



	2013					2012
	Current		Noncurrent			Current		Noncurrent
Deferred tax assets:
Accrued employee benefit plan costs	$	27,295	$	76,619		$	27,011	$	118,961
U.S. net operating loss	—		28,486			—		30,623
U.K. net operating loss	—		8,280			—		10,130
Norway net operating loss	—		13,949			—		408
Other	700		28,744			5,567		20,811
Total deferred tax assets	27,995		156,078			32,578		180,933
Less: valuation allowance	—		(25,909		)	—		(17,528		)
Deferred tax assets, net of valuation allowance	27,995		130,169			32,578		163,405

Deferred tax liabilities:
Property, plant and equipment	—		514,612			—		590,334
Other	5,858		45,212			5,950		46,943
Total deferred tax liabilities	5,858		559,824			5,950		637,277
Net deferred tax asset (liability)	$	22,137	$	(429,655	)	$	26,628	$	(473,872	)

Changes in gross unrecognized tax benefits

The following table sets forth the changes in the Company’s gross unrecognized tax benefits during the years ended December 31 (in thousands):



	2013			2012		2011
Gross unrecognized tax benefits - beginning of year	$	58,900		$	55,300	$	51,000
Gross increases - tax positions in prior period	11,021			700		4,300
Gross decreases - tax positions in prior period	(4,114		)	—		—
Gross increases - current period tax positions	16,674			2,900		—
Settlements	—			—		—
Lapse of statute of limitations	(561		)	—		—
Gross unrecognized tax benefit - end of year	$	81,920		$	58,900	$	55,300

Schedule of income before income tax

ncome (loss) from continuing operations before income taxes were as follows (in thousands):



	2013		2012		2011
U.S.	$	163,400	$	9,800	$	(1,200	)
Non-U.S.	97,800		173,700		131,300

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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