Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Components of the provision (benefit) for income taxes

	Years ended December 31,
	2019		2018		2017
Current tax expense (benefit)	$	(189)	$	244	$	5
Deferred tax expense (benefit)		248		(16)		89
Income tax expense	$	59	$	228	$	94

Reconciliation of the differences between income tax expense computed at the Swiss holding company statutory rate and the reported provision for income taxes

	Years ended December 31,
	2019		2018		2017
Income tax benefit at Swiss federal statutory rate	$	(94)	$	(139)	$	(235)
Earnings subject to rates different than the Swiss federal statutory rate		189		(86)		(30)
Effect of operating structural changes in the U.S.		98		—		—
Changes in valuation allowance		37		67		162
Losses on impairment		35		114		241
Deemed profits taxes		22		8		16
Base erosion and anti-abuse tax		21		33		—
Withholding taxes		11		8		14
Currency revaluation of Norwegian assets		5		11		1
Effect of U.S. tax reform		—		104		66
Litigation matters, primarily related to the Macondo well incident		—		—		(70)
Benefit from foreign tax credits		(8)		(5)		(15)
Changes in unrecognized tax benefits, net		(268)		117		(56)
Other, net		11		(4)		—
Income tax expense	$	59	$	228	$	94

Significant components of deferred tax assets and liabilities

	December 31,
	2019		2018
Deferred tax assets
Net operating loss carryforwards	$	571	$	479
Interest expense limitation		77		76
Accrued payroll expenses not currently deductible		45		49
Deferred income		41		26
Loss contingencies		38		40
United Kingdom charter limitation		36		30
Tax credit carryforwards		22		11
Accrued expenses		16		44
Other		24		13
Valuation allowance		(716)		(681)
Total deferred tax assets		154		87
Deferred tax liabilities
Depreciation		(361)		(62)
Contract intangible amortization		(23)		(22)
Other		(16)		(1)
Total deferred tax liabilities		(400)		(85)
Deferred tax assets (liabilities), net	$	(246)	$	2

Reconciliation of unrecognized tax benefits, excluding interest and penalties

	Years ended December 31,
		2019		2018		2017
Balance, beginning of period	$	408	$	222	$	274
Additions for prior year tax positions		6		172		17
Additions for current year tax positions		144		29		13
Reductions related to statute of limitation expirations and changes in law		(138)		(8)		(13)
Reductions for prior year tax positions		(66)		(7)		(68)
Reductions due to settlements		(19)		—		(1)
Balance, end of period	$	335	$	408	$	222

Schedule of unrecognized tax benefits, including related interest and penalties

	December 31,
		2019		2018
Unrecognized tax benefits, excluding interest and penalties	$	335	$	408
Interest and penalties		34		106
Unrecognized tax benefits, including interest and penalties	$	369	$	514