Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

The provision (benefit) for income taxes consisted of:

	2020		2019		2018
	(In millions)
United States
Federal
Current	$	(4)	$	(1)	$	1
Deferred taxes and other accruals	6		72		(74)
State	(1)		16		(45)
	1		87		(118)
Foreign
Current (a)	48		447		455
Deferred taxes and other accruals	(60)		(73)		(2)
	(12)		374		453
Provision (Benefit) For Income Taxes	$	(11)	$	461	$	335

(a)Primarily comprised of Libya in 2019 and 2018.

Income (Loss) Before Income Taxes

Income (loss) before income taxes consisted of the following:

	2020		2019		2018
	(In millions)
United States (a)	$	(1,509)	$	(338)	$	(219)
Foreign	(1,341)		559		439
Income (Loss) Before Income Taxes	$	(2,850)	$	221	$	220

(a)Includes substantially all of our interest expense, corporate expense and the results of commodity hedging activities.

Effective Income Tax Rate Reconciliation

The difference between our effective income tax rate and the U.S. statutory rate is reconciled below:

	2020		2019		2018
U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations (a)	12.1		142.9		141.2
State income taxes, net of federal income tax	0.1		5.8		(18.9)
Valuation allowance on current year operations	(36.5)		41.8		55.2
Release valuation allowance against previously unbenefited deferred tax assets	—		(24.5)		—
Noncontrolling interests in Midstream	1.7		(16.0)		(15.9)
Intraperiod allocation	—		33.7		(37.3)
Credits	2.0		—		—
Equity and executive compensation	(0.1)		2.2		7.4
Other	0.1		1.2		(0.3)
Total	0.4	%	208.1	%	152.4	%

(a)The variance in effective income tax rates attributable to the effect of foreign operations primarily resulted from the mix of income among high, primarily Libya, and low tax rate jurisdictions.

Components of Deferred Tax Liabilities and Deferred Tax Assets, and Presentation in Consolidated Balance Sheet

The components of deferred tax liabilities and deferred tax assets at December 31, were as follows:

	2020		2019
	(In millions)
Deferred Tax Liabilities
Property, plant and equipment and investments	$	(847)	$	(1,318)
Other	(45)		(45)
Total Deferred Tax Liabilities	(892)		(1,363)
Deferred Tax Assets
Net operating loss carryforwards	5,037		4,733
Tax credit carryforwards	135		66
Property, plant and equipment and investments	55		206
Accrued compensation, deferred credits and other liabilities	196		179
Asset retirement obligations	252		261
Other	325		317
Total Deferred Tax Assets	6,000		5,762
Valuation allowances (a)	(5,391)		(4,734)
Total deferred tax assets, net of valuation allowances	609		1,028
Net Deferred Tax Assets (Liabilities)	$	(283)	$	(335)

(a)In 2020, the valuation allowance increased by $657 million (2019: decrease of $143 million; 2018: decrease of $322 million).

In the Consolidated Balance Sheet, deferred tax assets and liabilities are netted by taxing jurisdiction and are recorded at December 31, as follows:

	2020		2019
	(In millions)
Deferred income taxes (long-term asset)	$	59	$	80
Deferred income taxes (long-term liability)	(342)		(415)
Net Deferred Tax Assets (Liabilities)	$	(283)	$	(335)

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

Below is a reconciliation of the gross beginning and ending amounts of unrecognized tax benefits:

	2020		2019		2018
	(In millions)
Balance at January 1	$	168	$	168	$	205
Additions based on tax positions taken in the current year	2		2		19
Additions based on tax positions of prior years	1		1		36
Reductions based on tax positions of prior years	(2)		(1)		(78)
Reductions due to settlements with taxing authorities	(1)		—		(10)
Reductions due to lapses in statutes of limitation	(2)		(2)		(4)
Balance at December 31	$	166	$	168	$	168