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Taxation (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Schedule of income taxes | Income taxes consist of the following:
| Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Current tax expense/(benefit): |  |  |  |  |  |  |  |
Bermuda | — |  |  | — |  |  | — |  |  |  | — |
Foreign | 12 |  |  | 22 |  |  | 30 |  |  |  | 34 |
Deferred tax expense/(benefit): |  |  |  |  |  |  |  |
Bermuda | — |  |  | — |  |  | — |  |  |  | — |
Foreign | (7) |  |  | (61) |  |  | (22) |  |  |  | (4) |
Total tax expense/(benefit) | 5 |  |  | (39) |  |  | 8 |  |  |  | 30 |
Effective tax rate | (0.1) | % |  | 3.1 | % |  | (1.3) | % |  |  | (0.8) | %
Schedule of income tax reconciliation | The income taxes for the year ended December 31, 2020 (Successor), the year ended December 31, 2019 (Successor), the period from July 2, 2018 through December 31, 2018 (Successor), and the period from January 1, 2018 through July 1, 2018 (Predecessor) differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows:
| Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Effect of change on unrecognized tax benefits | (1) |  |  | (6) |  |  | 49 |  |  |  | 12 |
Effect of unremitted earnings of subsidiaries | (2) |  |  | (17) |  |  | (10) |  |  |  | — |
Effect of taxable income in various countries | 8 |  |  | (16) |  |  | (31) |  |  |  | 18 |
Total tax expense/(benefit) | 5 |  |  | (39) |  |  | 8 |  |  |  | 30 |
Schedule of deferred income taxes | Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The net deferred tax assets/(liabilities) consist of the following: Deferred tax assets:
(In $ millions) | December 31, 2020 |  | December 31, 2019
Pensions and stock options | 1 |  |  | 2 |
Provisions | 31 |  |  | 30 |
Net operating losses carried forward | 251 |  |  | 259 |
Intangibles | 4 |  |  | — |
Other | 3 |  |  | — |
Gross deferred tax assets | 290 |  |  | 291 |
Valuation allowance | (219) |  |  | (255) |
Deferred tax assets, net of valuation allowance | 71 |  |  | 36 |
Deferred tax liabilities:
(In $ millions) | December 31, 2020 |  | December 31, 2019
Property, plant and equipment | 30 |  |  | 30 |
Unremitted Earnings of Subsidiaries | 8 |  |  | 10 |
Deferred gain | 34 |  |  | — |
Intangibles | — |  |  | 4 |
Gross deferred tax liabilities | 72 |  |  | 44 |
Net deferred tax liability | (1) |  |  | (8) |
Schedule of changes in uncertain tax positions | The changes to our balance related to unrecognized tax benefits were as follows:
| Successor |  |  | Predecessor
(In $ millions) | Year ended December 31, 2020 |  | Year ended December 31, 2019 |  | Period from July 2, 2018 through December 31, 2018 |  |  | Period from January 1, 2018 through July 1, 2018
Balance at the beginning of the period | 89 |  |  | 132 |  |  | 61 |  |  |  | 55 |
Increases as a result of positions taken in prior periods | 1 |  |  | 8 |  |  | 69 |  |  |  | 7 |
Increases as a result of positions taken during the current period | — |  |  | 29 |  |  | 18 |  |  |  | 1 |
Decreases as a result of positions taken in prior periods | (4) |  |  | (34) |  |  | (9) |  |  |  | (2) |
Decreases due to settlements | (1) |  |  | (46) |  |  | (7) |  |  |  | — |
Decreases as a result of a lapse of the applicable statute of limitations | (3) |  |  | — |  |  | — |  |  |  | — |
Balance at the end of the period | 82 |  |  | 89 |  |  | 132 |  |  |  | 61 |
Summary of tax years that remain subject to examination | The following table summarizes the earliest tax years that remain subject to examination by other major taxable jurisdictions in which we operate.
Jurisdiction | Earliest Open Year
Angola | 2015
Nigeria | 2014
United States | 2016
Norway | 2016
Brazil | 2008

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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