INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

The provision for income taxes consisted of:

	Year Ended December 31,
	2014			2013			2012
	(In thousands)
Other than U.S.:
Current	$	21,619		$	54,410		$	125,402
Deferred		(1,546	)		(5,359	)		3,802
Total provision for income taxes	$	20,073		$	49,051		$	129,204

The geographic sources of income before income taxes are as follows:

	Year Ended December 31,
	2014			2013			2012
	(In thousands)
U.S.		(31,124	)	$	(151,904	)	$	(92,025	)
Other than U.S.		(14,197	)		(288,955	)		422,967
Income before provision for income taxes	$	(45,321	)	$	(440,859	)⁽¹⁾	$	330,942	⁽¹⁾

⁽¹⁾	These amounts have been restated to reflect the effect of a pension accounting change, as discussed in Note 1.

The following is a reconciliation of the Panama statutory federal tax rate to the consolidated effective tax rate:

	Year Ended December 31,
	2014			2013				2012
Panama federal statutory rate		25.0	%		25.0	%			25.0	%
Non-Panama operations		3.5	%		-16.4	%			-4.4	%
Valuation allowance for deferred tax assets		-86.6	%		-19.1	%			14.7	%
Audit settlements and reserves		14.2	%		-0.9	%			3.0	%
Other		-0.4	%		0.3	%			0.7	%
Effective tax rate attributable to continuing operations		-44.3	%		-11.1	%	⁽¹⁾		39.0	%⁽¹⁾

⁽¹⁾	Rate has been updated to reflect the effect of a pension accounting change, as discussed in Note 1. There has been no change in overall provision for income taxes.

Significant components of deferred tax assets and liabilities were as follows:

	December 31,
	2014			2013
Deferred tax assets:
Pension liability	$	10,976		$	16,658
Accrued liabilities for incentive compensation		19,015			15,032
Net operating loss carryforward		294,722			259,600
State net operating loss carryforward		21,296			24,679
Long-term contracts		39,817			13,504
Other		1,549			4,936
Total deferred tax assets		387,375			334,409
Valuation allowance for deferred tax assets		(331,589	)		(292,388	)
Deferred tax assets	$	55,786		$	42,021

Deferred tax liabilities:
Property, plant and equipment		28,815			19,115
Prepaid drydock		10,280			13,025
Investments in joint ventures and affiliated companies		13,583			8,354
Unrealized exchange gains and other		3,162			3,236
Total deferred tax liabilities	$	55,840		$	43,730

Net deferred tax liability	$	54		$	1,709

	December 31,
	2014			2013
Deferred tax assets and liabilities in the accompanying
consolidated balance sheets include:
Current deferred tax assets	$	7,514		$	7,091
Noncurrent deferred tax assets		17,313			16,766
Total	$	24,827		$	23,857
Current deferred tax liabilities	$	19,753		$	17,892
Noncurrent deferred tax liabilities		5,128			7,674
Total	$	24,881		$	25,566
Net deferred tax liability	$	54		$	1,709

A reconciliation of unrecognized tax benefits is as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Balance at beginning of period	$	40,613		$	40,516		$	31,664
Increases based on tax positions taken in the current year		3,479			539			10,830
Increases based on tax positions taken in prior years		3,195			3,831			158
Decreases based on tax positions taken in prior years		(863	)		(3,688	)		(1,465	)
Decreases due to lapse of applicable statute of limitation		(12,318	)		(585	)		(671	)
Balance at end of period	$	34,106		$	40,613		$	40,516