Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Expense (Benefit) [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

We believe it is more likely than not that all our deferred tax assets are realizable. Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income before income taxes were as follows:

	Year Ended December 31,
	2013		2012		2011
United States statutory rate	35.0	%	35.0	%	35.0	%
State and local taxes	0.2		0.1		0.2
Foreign tax rate differential	(3.7	)	(2.9	)	(3.3	)
Amended returns filed	—		—		(1.4	)
Other items, net	—		(0.7	)	(0.2	)
Total effective tax rate	31.5	%	31.5	%	30.3	%

We consider $431 million of unremitted earnings of our foreign subsidiaries to be indefinitely reinvested. It is not practical for us to compute the amount of additional U.S. tax that would be due on this amount. We have provided deferred income taxes on the foreign earnings we expect to repatriate.

Schedule of Components of Income Tax Expense (Benefit)

Our provisions for income taxes and our cash taxes paid are as follows:

	Year Ended December 31,
(in thousands)	2013			2012			2011
Current:
Domestic	$	45,468		$	4,039		$	13,169
Foreign	73,568			108,212			81,556
Total current	119,036			112,251			94,725
Deferred:
Domestic	56,115			26,170			12,144
Foreign	(4,315		)	(5,516		)	(4,642		)
Total deferred	51,800			20,654			7,502
Total provision for income taxes	$	170,836		$	132,905		$	102,227
Cash taxes paid	$	113,760		$	92,422		$	72,825

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before income taxes are as follows:

	Year Ended December 31,
(in thousands)	2013		2012		2011
Domestic	$	68,066	$	53,240	$	41,831
Foreign	474,270		368,682		296,054
Income before income taxes	$	542,336	$	421,922	$	337,885

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2013 and 2012, our worldwide deferred tax assets, liabilities and net deferred tax liabilities were as follows:

	December 31,
(in thousands)	2013		2012
Deferred tax assets:
Deferred compensation	$	48,401	$	42,296
Deferred income	30,101		10,251
Accrued expenses	8,441		7,676
Other	11,921		12,613
Gross deferred tax assets	98,864		72,836
Valuation allowance	—		—
Total deferred tax assets	$	98,864	$	72,836
Deferred tax liabilities:
Property and equipment	$	129,441	$	106,237
Unremitted foreign earnings	157,091		91,164
Basis difference in equity investments	10,843		13,860
Other	707		17,071
Total deferred tax liabilities	$	298,082	$	228,332
Net deferred income tax liability	$	199,218	$	155,496

Our net deferred tax liability is reflected within our balance sheet as follows:

	December 31,
(in thousands)	2013			2012
Deferred tax liabilities	$	260,807		$	178,100
Current deferred tax assets	(61,589		)	(22,604		)
Net deferred income tax liability	$	199,218		$	155,496

Schedule of Unrecognized Tax Benefits Roll Forward

We recognize the benefit for a tax position if the benefit is more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement.

We account for any applicable interest and penalties on uncertain tax positions as a component of our provision for income taxes on our financial statements. We increased/(decreased) income tax expense by $1.7 million, $(2.7) million and

$0.4 million in 2013, 2012 and 2011, respectively, for penalties and interest on uncertain tax positions, which brought our total liabilities for penalties and interest on uncertain tax positions to $3.3 million and $1.7 million on our balance sheets at December 31, 2013 and 2012, respectively. Including associated foreign tax credits and penalties and interest, we have accrued a net total of $8.6 million in the caption "other long-term liabilities" on our balance sheet for unrecognized tax benefits at December 31, 2013. All additions or reductions to those liabilities affect our effective income tax rate in the periods of change.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, not including associated foreign tax credits and penalties and interest, is as follows:

	Year Ended December 31,
(in thousands)	2013			2012			2011
Beginning of year	$	5,140		$	10,104		$	9,991
Additions based on tax positions related to the current year	100			244			947
Reductions for expiration of statutes of limitations	(1,225		)	(225		)	(834		)
Additions based on tax positions related to prior years	3,490			3,335			—
Reductions based on tax positions related to prior years	(337		)	(8,193		)	—
Settlements	—			(125		)	—
Balance at end of year	$	7,168		$	5,140		$	10,104

We do not believe that the total of unrecognized tax benefits will significantly increase or decrease in the next 12 months.

Summary of Income Tax Examinations

We file a consolidated U.S. federal income tax return for Oceaneering International, Inc. and our domestic subsidiaries. We conduct our international operations in a number of locations that have varying laws and regulations with regard to income and other taxes, some of which are subject to interpretation. Our management believes that adequate provisions have been made for all taxes that will ultimately be payable, although final determination of tax liabilities may differ from our estimates.

Our tax returns are subject to audit by taxing authorities in multiple jurisdictions. These audits often take years to complete and settle. The following lists the earliest tax years open to examination by tax authorities where we have significant operations:

Jurisdiction	Periods
United States	2010
United Kingdom	2010
Norway	2003
Angola	2008
Nigeria	2007
Brazil	2008
Australia	2009
Canada	2009