b'KOSMOS ENERGY LTD.Notes to Consolidated Financial Statements (Continued)13. Income Taxes (Continued)Our reconciliation of income tax expense (benefit) computed by applying our statutory rate andthe reported effective tax rate on loss from continuing operations is as follows:Years Ended December 31,2018 2017 2016(In thousands)Tax at statutory rate(1). . . . . . . . . . . . . . . . . . . . . $(10,681) $$ Foreign income (loss) taxed at different rates . . . . 5,013 9,381 (57,898)Net non-taxable expense / insurance recoveries . . . 3,256 (30) 8,694West Leo arbitration settlement . . . . . . . . . . . . . . (2,834) 1,736 1,098Non-deductible compensation . . . . . . . . . . . . . . . . 2,643 1,680 1,999Deferred tax liabilityundistributed earnings . . . . (2,565) 2,565 Non-deductible and other items . . . . . . . . . . . . . . 656 3,790 556Equity earningsnet of tax . . . . . . . . . . . . . . . . . (15,305)Tax shortfall (windfall) on equity-basedcompensation, net . . . . . . . . . . . . . . . . . . . . . . (387) 3,086 5,504Change in valuation allowance . . . . . . . . . . . . . . . 63,335 6,008 29,263Change in U.S. tax rate . . . . . . . . . . . . . . . . . . . .16,721 Total tax expense (benefit) . . . . . . . . . . . . . . . . . . . . $ 43,131 $44,937 $(10,784)Effective tax rate(2) . . . . . . . . . . . . . . . . . . . . . . . . 85% 25% 4%(1) On December 28, 2018, we changed our jurisdiction of incorporation from Bermuda tothe State of Delaware. Kosmos Energy Ltd. discontinued as a Bermuda exemptedcompany pursuant to Section 132G of the Companies Act 1981 of Bermuda and, pursuantto Section 265 of the General Corporation Law of the State of Delaware (the DGCL),continued its existence under the DGCL as a corporation organized in the State ofDelaware. As a result, the statutory tax rate for the 2018 reconciliation of income taxexpense is the U.S. statutory tax rate of 21%. Our 2017 and 2016 reconciliation of incometax expense is based on the Bermuda statutory tax rate of 0%.(2) The effective tax rate during the years ended December 31, 2018, 2017 and 2016 wereimpacted by losses of $261.2 million, $164.4 million and $121.4 million, respectively,incurred in jurisdictions in which we are not subject to taxes and therefore do notgenerate any income tax benefits.The effective tax rate for the United States is approximately 84%, 433% and 179% for the yearsended December 31, 2018, 2017 and 2016, respectively. The effective tax rate in the United States isimpacted by the effect the sum of non-deductible expenditures and equity-based compensation taxshortfalls and tax windfalls equal to the difference between the income tax benefit recognized forfinancial statement reporting purposes compared to the income tax benefit realized for tax returnpurposes.The effective tax rate for Ghana is approximately 36%, 49% and 23% for the years endedDecember 31, 2018, 2017 and 2016, respectively. The effective tax rate in Ghana is impacted bynon-deductible expenditures, including amounts associated with the damage to the turret bearing, which142'