Parker Drilling adopted a shareholder rights plan to protect the potential future value of the company's net operating losses, foreign tax credits and other tax attributes. The company believes these Tax Benefits are valuable assets that could offset potential future income taxes for federal income tax purposes. As of December 31, 2017, the company had approximately $456M of federal NOLs and $47M of foreign tax credits. The company's ability to use the Tax Benefits would be substantially limited if it experiences an "ownership change,". The Rights Plan is intended to reduce the likelihood of such an ownership change by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the company's outstanding common stock. The Section 382 Rights Plan lowers the beneficial ownership threshold for a person or group to become an "acquiring person" under the plan to 4.9%, from 10% in the Original Rights Plan. The Rights Plan will expire July 12, 2019, unless shareholders ratify the Section 382 Rights Plan prior to such date, in which case the term extends to three years.