Income Taxes

The Company's income tax benefit attributable to income from continuing operations consisted of the following for the three and nine months ended September 30, 2016 and 2015:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
	(in millions)
Current tax benefit (provision)	$	22	$	(48	)	$	22	$	(49	)
Deferred tax benefit (provision)	56		(307		)	340		(146		)
Income tax benefit (provision)	$	78	$	(355	)	$	362	$	(195	)

For the three and nine months ended September 30, 2016, the Company's effective tax rates, excluding income attributable to noncontrolling interests, were 140 percent and 41 percent, respectively, as compared to an effective rate of 35 percent for each of the the same respective periods in 2015. The Company's effective tax rates for the three and nine months ended September 30, 2016 differ from the U.S. statutory rate of 35 percent primarily due to recognizing research and experimental expenditures credits of $59 million in the third quarter of 2016, and, to a lesser extent, state income tax apportionments and nondeductible expenses.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. As of September 30, 2016, the Company had unrecognized tax benefits of $94 million resulting from research and experimental expenditures related to horizontal drilling and completions innovations. If all of, or a portion of, the unrecognized tax benefit is sustained upon examination by the taxing authorities, the tax benefit will be recognized as a reduction to the Company's deferred tax liability and will affect the Company's effective tax rate in the period it is recognized. The Company expects to resolve the uncertainties associated with the unrecognized tax benefit by September 2017. There were no unrecognized tax benefits as of December 31, 2015.

The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions. The Internal Revenue Service has closed examinations of the 2013 and prior tax years and, with few exceptions, the Company believes that it is no longer subject to examinations by state and foreign tax authorities for years before 2010. As of September 30, 2016, no adjustments had been proposed in any jurisdiction that would have a significant effect on the Company's liquidity, future results of operations or financial position.