XML 118 R21.htm IDEA: XBRL DOCUMENT
v2.4.1.9

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2014
Income Taxes |
Income Taxes | Note 14 Income Taxes The following is a reconciliation of our uncertain tax positions:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Balance as of January 1 |  | $ | 47,552 |  | $ | 83,950 |  | $ | 68,848 |
Additions based on tax positions related to the current year |  |  | 167,107 | (1) |  | 145 |  |  | 922 |
Additions for tax positions of prior years |  |  | 1,744 |  |  | 3,360 |  |  | 16,372 | (3)
Reductions for tax positions for prior years |  |  | (4,473 | ) |  | (30,320 | )(2) |  | (1,174 | )
Settlements |  |  | (8,223 | ) |  | (9,583 | ) |  | (1,018 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance as of December 31 |  | $ | 203,707 |  | $ | 47,552 |  | $ | 83,950 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) | Includes $166.0 million related to internal restructuring.
(2) | Includes $21.6 million related to settlements in Mexico, Canada and Algeria and $8.7 million due to the expiration of statutes.
(3) | Includes an uncertain tax position of $10.4 million related to a Mexico audit assessment.
If the reserves of $203.7 million are not realized, this would favorably impact the worldwide effective tax rate. As of December 31, 2014, 2013 and 2012, we had approximately $16.9 million, $20.6 million and $42.8 million, respectively, of interest and penalties related to uncertain tax positions. During 2014, 2013 and 2012, we accrued and recognized estimated interest and penalties related to uncertain tax positions of approximately $6.1 million, $5.2 million and $2.7 million, respectively. We include potential interest and penalties related to uncertain tax positions within our global operations in the income tax expense (benefit) line item in our consolidated statements of income (loss). It is reasonably possible that our existing liabilities related to our reserve for uncertain tax positions may increase or decrease in the next twelve months primarily due to the completion of open audits or the expiration of statutes of limitation. However, we cannot reasonably estimate a range of changes in our existing liabilities due to various uncertainties, such as the unresolved nature of various audits. We conduct business globally and, as a result, we file numerous income tax returns in the U.S. and non-U.S. jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world. Income (loss) from continuing operations before income taxes consisted of the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
United States and Other Jurisdictions |  |  |  |  |  |  |  |  |  |
United States |  | $ | (598,121 | ) | $ | (84,032 | ) | $ | 193,125 |
Other jurisdictions |  |  | (6,494 | ) |  | 190,192 |  |  | 83,835 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income (loss) from continuing operations before income taxes |  | $ | (604,615 | ) | $ | 106,160 |  | $ | 276,960 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income tax expense (benefit) from continuing operations consisted of the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | 183,840 |  | $ | (16,934 | ) | $ | 25,802 |
Outside the U.S. |  |  | 109,072 |  |  | 50,866 |  |  | 82,950 |
State |  |  | 9,401 |  |  | 5,933 |  |  | 34,242 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  | $ | 302,313 |  | $ | 39,865 |  | $ | 142,994 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred: |  |  |  |  |  |  |  |  |  |
U.S. federal |  | $ | (211,119 | ) | $ | (71,251 | ) | $ | (79,193 | )
Outside the U.S. |  |  | (9,127 | ) |  | (10,288 | ) |  | (9,484 | )
State |  |  | (19,401 | ) |  | (13,507 | ) |  | (13,331 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
|  | $ | (239,647 | ) | $ | (95,046 | ) | $ | (102,008 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income tax expense (benefit) |  | $ | 62,666 |  | $ | (55,181 | ) | $ | 40,986 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
A reconciliation of our statutory tax rate to our worldwide effective tax rate consists of the following:
|  | Year Ended December 31, |
|  | 2014 |  | 2013 |  | 2012 |
|  | (In thousands) |
Income tax provision at statutory (Bermuda rate of 0%) |  | $ | — |  | $ | — |  | $ | — |
Taxes (benefit) on U.S. and other international earnings (losses) at greater than the Bermuda rate |  |  | (83,747 | ) |  | (33,277 | ) |  | (39,830 | )
Increase (decrease) in valuation allowance |  |  | (9,934 | ) |  | 25,592 |  |  | 33,730 |
Tax reserves and interest |  |  | 166,347 |  |  | (39,921 | ) |  | 26,176 |
State income taxes (benefit) |  |  | (10,000 | ) |  | (7,575 | ) |  | 20,910 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income tax expense (benefit) |  | $ | 62,666 |  | $ | (55,181 | ) | $ | 40,986 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Effective tax rate |  |  | (10.4 | )% |  | (52.0 | )% |  | 14.8 | %
The change in our worldwide effective tax rate from 2013 to 2014 is primarily attributable to the tax effect related to impairments and internal restructuring. The change in geographic mix of pre-tax earnings also contributed to the change. The change in our worldwide effective tax rate from 2012 to 2013 resulted mainly from the geographic mix of pre-tax earnings and settlements of tax disputes. The components of our net deferred taxes consisted of the following:
|  | December 31, |
|  | 2014 |  | 2013 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 1,470,407 |  | $ | 1,658,084 |
Equity compensation |  |  | 35,296 |  |  | 32,219 |
Deferred revenue |  |  | 23,116 |  |  | 35,689 |
Tax credit and other attribute carryforwards |  |  | 116,833 |  |  | 109,294 |
Insurance loss reserves |  |  | 6,235 |  |  | 4,645 |
Accrued Interest |  |  | 227,572 |  |  | 224,959 |
Other |  |  | 143,302 |  |  | 162,678 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Subtotal |  |  | 2,022,761 |  |  | 2,227,568 |
Valuation allowance |  |  | (1,537,507 | ) |  | (1,547,441 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax assets: |  | $ | 485,254 |  | $ | 680,127 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liabilities: |  |  |  |  |  |  |
Depreciation and amortization for tax in excess of book expense |  | $ | 760,294 |  | $ | 967,689 |
Variable interest investments |  |  | 4,496 |  |  | 85,979 |
Other |  |  | 17,953 |  |  | 17,890 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred tax liability |  | $ | 782,743 |  | $ | 1,071,558 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax assets (liabilities) |  | $ | (297,489 | ) | $ | (391,431 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Balance Sheet Summary: |  |  |  |  |  |  |
Net current deferred asset |  | $ | 118,230 |  | $ | 121,316 |
Net noncurrent deferred asset(1) |  |  | 30,961 |  |  | 6,491 |
Net current deferred liability(2) |  |  | (3,677 | ) |  | (3,077 | )
Net noncurrent deferred liability |  |  | (443,003 | ) |  | (516,161 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred asset (liability) |  | $ | (297,489 | ) | $ | (391,431 | )
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(1) | This amount is included in other long-term assets.
(2) | This amount is included in accrued liabilities.
For U.S. federal income tax purposes, we have net operating loss ("NOL") carryforwards of approximately $214.3 million that, if not utilized, will expire between 2019 and 2031. The NOL carryforwards for alternative minimum tax purposes are approximately $192.0 million. Additionally, we have NOL carryforwards in other jurisdictions of approximately $5.3 billion of which $380.7 million, if not utilized, will expire at various times from 2015 to 2034. We provide a valuation allowance against NOL carryforwards in various tax jurisdictions based on our consideration of existing temporary differences and expected future earning levels in those jurisdictions. We have recorded a deferred tax asset of approximately $1.43 billion as of December 31, 2014 relating to NOL carryforwards that have an indefinite life in several non-U.S. jurisdictions. A valuation allowance of approximately $1.43 billion has been recognized because we believe it is more likely than not that substantially all of the deferred tax asset will not be realized. The NOL carryforwards by year of expiration consist of the following:
Year Ended December 31, |  | Total |  | U.S. Federal |  | Non-U.S. |
|  | (In thousands) |
2015 |  | $ | 8,295 |  | $ | — |  | $ | 8,295 |
2016 |  |  | 27,847 |  |  | — |  |  | 27,847 |
2017 |  |  | 34,729 |  |  | — |  |  | 34,729 |
2018 |  |  | 48,559 |  |  | — |  |  | 48,559 |
2019 |  |  | 15,997 |  |  | 13,369 |  |  | 2,628 |
2020 |  |  | 15,115 |  |  | — |  |  | 15,115 |
2021 |  |  | 21,354 |  |  | — |  |  | 21,354 |
2022 |  |  | 1,282 |  |  | — |  |  | 1,282 |
2023 |  |  | 2,965 |  |  | — |  |  | 2,965 |
2024 |  |  | 7,583 |  |  | — |  |  | 7,583 |
2028 |  |  | 8 |  |  | — |  |  | 8 |
2030 |  |  | 99 |  |  | — |  |  | 99 |
2031 |  |  | 242,703 |  |  | 200,912 |  |  | 41,791 |
2032 |  |  | 75,257 |  |  | — |  |  | 75,257 |
2033 |  |  | 83,601 |  |  | — |  |  | 83,601 |
2034 |  |  | 9,610 |  |  | — |  |  | 9,610 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Subtotal: expiring NOLs |  | $ | 595,004 |  | $ | 214,281 |  | $ | 380,723 |
Non-expiring NOLs |  |  | 4,898,787 |  |  | — |  |  | 4,898,787 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total |  | $ | 5,493,791 |  | $ | 214,281 |  | $ | 5,279,510 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
In addition, for state income tax purposes, we have net operating loss carryforwards of approximately $313.0 million that, if not utilized, will expire at various times from 2015 to 2034.

X
- Details
Name: | us-gaap_ComponentsOfIncomeTaxExpenseBenefitContinuingOperationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration