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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components Of Income Tax Provisions (Benefits)

Income tax provisions (benefits) were:



	2014								2013							2012
(In millions)	Current		Deferred			Total			Current		Deferred			Total		Current			Deferred		Total
Federal	$	1,382	$	(199	)	$	1,183		$	954	$	20		$	974	$	1,185		$	432	$	1,617
State and local	135		(37		)	98			131		8			139		169			57		226
Foreign	5		(6		)	(1		)	5		(5		)	—		(1		)	3		2
Total	$	1,522	$	(242	)	$	1,280		$	1,090	$	23		$	1,113	$	1,353		$	492	$	1,845

Reconciliation Of Federal Statutory Income Tax Rate

A reconciliation of the federal statutory income tax rate (35 percent) applied to income before income taxes to the provision for income taxes follows:



	2014		2013		2012
Statutory rate applied to income before income taxes	35	%	35	%	35	%
State and local income taxes, net of federal income tax effects	2		3		2
Domestic manufacturing deduction	(2	)	(2	)	(1	)
Other	(2	)	(2	)	(1	)
Provision for income taxes	33	%	34	%	35	%

Components Of Deferred Tax Assets And Liabilities

Deferred tax assets and liabilities resulted from the following:



	December 31,
(In millions)	2014		2013
Deferred tax assets:
Employee benefits	$	616	$	483
Environmental	54		37
Investments in subsidiaries and affiliates	24		—
Other	70		49
Total deferred tax assets	764		569
Deferred tax liabilities:
Property, plant and equipment	2,411		2,290
Inventories	614		614
Investments in subsidiaries and affiliates	—		267
Other	101		70
Total deferred tax liabilities	3,126		3,241
Net deferred tax liabilities	$	2,362	$	2,672

Components Of Net Deferred Tax Liabilities Classified In Consolidated Balance Sheets

Net deferred tax liabilities were classified in the consolidated balance sheets as follows:



	December 31,
(In millions)	2014		2013
Assets:
Other noncurrent assets	$	7	$	2
Liabilities:
Accrued taxes	355		370
Deferred income taxes	2,014		2,304
Net deferred tax liabilities	$	2,362	$	2,672

Summary Of Income Tax Returns Subject To Examination

As of December 31, 2014, our income tax returns remain subject to examination in the following major tax jurisdictions for the tax years indicated:



United States Federal	2010	-	2013
States	2004	-	2013

Summary Of Activity In Unrecognized Tax Benefits

The following table summarizes the activity in unrecognized tax benefits:



(In millions)	2014			2013			2012
January 1 balance	$	13		$	40		$	20
Additions for tax positions of prior years	7			30			32
Reductions for tax positions of prior years	(10		)	(25		)	(6		)
Settlements	2			(30		)	(6		)
Statute of limitations	—			(2		)	—
December 31 balance	$	12		$	13		$	40

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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