2. Supplemental Financial Information

Consolidated Balance Sheets Information

Accounts receivable, net of allowance for bad debts, consists of the following:


	September 30,			December 31,
	2013			2012
	(In thousands)
Trade receivables	$	422,708		$	478,987
Value added tax receivables		17,750			13,884
Amounts held in escrow		12,025			11,555
Related party receivables		353			527
Other		124			165

		452,960			505,118
Allowance for bad debts		(28,152	)		(5,458	)

Total	$	424,808		$	499,660

We recorded $22.6 million in bad debt expense during the three-month and nine-month periods ended September 30, 2013, to reserve the outstanding accounts receivable balance for two of our customers. See Note 6.

Prepaid expenses and other current assets consist of the following:


	September 30,		December 31,
	2013		2012
	(In thousands)
Rig spare parts and supplies	$	52,195	$	57,558
Deferred mobilization costs		23,974		38,074
Prepaid insurance		20,329		12,549
Deferred tax assets		8,619		8,619
Prepaid taxes		25,892		5,950
FOREX contracts		3,272		3,627
Other		7,871		9,722

Total	$	142,152	$	136,099

Accrued liabilities consist of the following:


	September 30,		December 31,
	2013		2012
	(In thousands)
Rig operating expenses	$	87,069	$	70,078
Payroll and benefits		107,210		88,612
Deferred revenue		34,457		71,699
Accrued capital project/upgrade costs		74,308		56,595
Interest payable		29,422		21,219
Personal injury and other claims		10,065		10,312
FOREX contracts		4,304		29
Other		7,397		5,890

Total	$	354,232	$	324,434

Consolidated Statements of Cash Flows Information

Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows:


	Nine Months Ended September 30,
	2013		2012
	(In thousands)
Accrued but unpaid capital expenditures at period end	$	74,308	$	48,620
Cash interest payments⁽¹⁾⁽²⁾		54,000		54,187
Cash income taxes paid, net of refunds:
U.S. federal		47,000		53,000
Foreign		62,951		56,070
State		190		212

(1)	Interest payments, net of amounts capitalized, were $8.9 million and $31.9 million for the nine months ended September 30, 2013 and 2012, respectively.

(2)	Interest paid on Internal Revenue Service assessments was $0.2 million during the nine months ended September 30, 2012.