Cobalt International Energy, Inc.
Notes to Consolidated Financial Statements (Continued)
16. Income Taxes
For the years ended December 31, 2014, 2013 and 2012, the Company recorded a net deferred tax
asset of $568.0 million, $461.6 million, and $269.6 million, respectively with a corresponding full
valuation allowance of $568.0 million, $461.6 million, and $269.6 million, respectively, for the net tax
effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
The components of the income tax provision (benefit) are as follows:
Year Ended
December 31,
2014 2013 2012
($ in thousands)
Current taxes:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $— $— $—
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— — —
Deferred taxes:
U.S. federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— — —
Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— — —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $— $— $—
The reconciliation of income taxes computed at the U.S. federal statutory tax rate to the
Company’s income tax expense (benefit) for years ended December 31, 2014, 2013 and 2012 are as
follows:
Year Ended December 31,
2014
2013
2012
($ in thousands)
U.S.:
Net income (loss) as reported . . . . . . . . . . . . . . . . . . . . . . . . . . $(307,025) $(387,210) $(229,372)
Less: net income (loss) applicable to period before corporate
reorganization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— — —
Foreign:
Net income (loss) as reported . . . . . . . . . . . . . . . . . . . . . . . . . .
(203,738) (201,814) (53,627)
Less: net income (loss) applicable to period before corporate
reorganization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
— — —
Net income (loss) applicable to period after corporate
reorganization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(510,763) $(589,024) $(282,999)
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