KOSMOS ENERGY LTD. Notes to Consolidated Financial Statements (Continued) 12. Equity-based Compensation (Continued) In January 2018, we granted 1.8 million service vesting restricted stock units and 2.3 million market and service vesting restricted stock units to our employees under our long-term incentive plan. We expect to recognize approximately $34.3 million of non-cash compensation expense related to these grants over the next three years. 13. Income Taxes Kosmos Energy Ltd. is a Bermuda company that is not subject to taxation at the corporate level. We provide for income taxes based on the laws and rates in effect in the countries in which our operations are conducted. The relationship between our pre-tax income or loss from continuing operations and our income tax expense or benefit varies from period to period as a result of various factors which include changes in total pre-tax income or loss, the jurisdictions in which our income (loss) is earned and the tax laws in those jurisdictions. On December 22, 2017, the President of the United States signed P.L. 115-97, the Tax Cut and Jobs Act (the Tax Reform Act), into law. Many of the provisions of the Tax Reform Act are effective beginning January 1, 2018, most notable of which is the reduction in the U.S. corporate income tax rate from 35% to 21%. Accounting Standards Codification Topic 740 requires deferred tax assets and liabilities be adjusted for the effect of changes in tax laws or tax rates during the period that includes the date of enactment. Accordingly, we have recorded a $16.7 million charge to deferred tax expense in December 2017 as a result of reducing our net deferred tax assets. The components of income (loss) before income taxes were as follows: Years Ended December 31, 2017 2016 2015 (In thousands) Bermuda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (66,914) $ (63,749) $(62,372) United States . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,068 5,083 10,652 Foreign—other . . . . . . . . . . . . . . . . . . . . . . . . . (117,009) (235,898) 137,156 Income (loss) before income taxes . . . . . . . . . . . $(177,855) $(294,564) $ 85,436 141