INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Significant components of income taxes attributable to continuing operations

The significant components of income taxes attributable to continuing operations are presented below (in thousands):



	2014			2013			2012
Current:
U.S.	$	(62,332	)	$	(38,025	)	$	(69,934	)
Non - U.S.	53,494			31,932			23,931
State	151			(5,141		)	100
Current expense (benefit)	(8,687		)	(11,234		)	(45,903		)
Deferred:
U.S.	(140,305		)	20,827			45,794
Non - U.S.	(1,740		)	(930		)	(19,720		)
Deferred provision (benefit)	(142,045		)	19,897			26,074
Total provision (benefit)	$	(150,732	)	$	8,663		$	(19,829	)

Income tax expense (benefit), income tax reconciliation

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



	2014			2013			2012
U.K. Statutory rate	21.5		%	23.25		%	24.5		%
Tax at statutory rate	$	(57,965	)	$	60,738		$	44,950
Increase (decrease) due to:
Capitalized interest transactions	(20,145		)	(11,317		)	(39,204		)
Tax audit settlements	10,449			—			—
Foreign rate differential	38,216			(27,078		)	(27,591		)
Deferred intercompany gain/loss	(86,635		)	(9,062		)	(8,749		)
Change in valuation allowance	(3,570		)	8,381			2,806
Prior period adjustments	7,511			(9,837		)	4,482
Unrecognized tax benefits	(35,791		)	17,544			2,463
Excess compensation	657			1,022			1,432
Foreign taxes of subsidiaries for which U.S. federal income taxes have been provided	—			9,155			—
Foreign tax credits/deductions	(4,925		)	(31,078		)	(1,632		)
Other, net	1,466			195			1,214
Total provision (benefit)	$	(150,732	)	$	8,663		$	(19,829	)

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):



	2014					2013
	Current		Noncurrent			Current		Noncurrent
Deferred tax assets:
Accrued employee benefit plan costs	$	30,912	$	118,096		$	27,295	$	76,619
U.S. net operating loss	—		46,675			—		28,486
U.K. net operating loss	—		2,708			—		8,280
Norway net operating loss	—		—			—		13,949
Trinidad net operating loss	—		13,034			—		—
Other NOLs and tax credit carryforwards	819		23,634			—		—
Other	888		28,069			700		28,744
Total deferred tax assets	32,619		232,216			27,995		156,078
Less: valuation allowance	—		(22,339		)	—		(25,909		)
Deferred tax assets, net of valuation allowance	32,619		209,877			27,995		130,169

Deferred tax liabilities:
Property, plant and equipment	—		369,095			—		514,612
Other	5,134		51,764			5,858		45,212
Total deferred tax liabilities	5,134		420,859			5,858		559,824
Net deferred tax asset (liability)	$	27,485	$	(210,982	)	$	22,137	$	(429,655	)

Changes in gross unrecognized tax benefits

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



	2014			2013			2012
Gross unrecognized tax benefits - beginning of year	$	81,920		$	58,900		$	55,300
Gross increases - tax positions in prior period	19,928			11,021			700
Gross decreases - tax positions in prior period	(10,649		)	(4,114		)	—
Gross increases - current period tax positions	9,458			16,674			2,900
Settlements	(37,809		)	—			—
Lapse of statute of limitations	(8,188		)	(561		)	—
Gross unrecognized tax benefit - end of year	$	54,660		$	81,920		$	58,900

Schedule of income before income tax

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



	2014			2013		2012
U.S.	$	(198,300	)	$	163,400	$	9,800
Non-U.S.	(71,300		)	97,800		173,700

- 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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