Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Provision (Benefit)

The provision (benefit) for income taxes consisted of:

	2021		2020		2019
	(In millions)
United States
Federal
Current	$	—	$	(4)	$	(1)
Deferred taxes and other accruals	12		6		72
State	3		(1)		16
	15		1		87
Foreign
Current (a)	478		48		447
Deferred taxes and other accruals	107		(60)		(73)
	585		(12)		374
Provision (Benefit) For Income Taxes	$	600	$	(11)	$	461

(a)Primarily comprised of Libya in 2021, 2020 and 2019.

Components of Income (Loss) Before Income Taxes

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

	2021		2020		2019
	(In millions)
United States (a)	$	143	$	(1,509)	$	(338)
Foreign	1,347		(1,341)		559
Income (Loss) Before Income Taxes	$	1,490	$	(2,850)	$	221

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

Reconciliation of Effective Income Tax Rate

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

	2021		2020		2019
U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations (a)	28.0		12.1		142.9
State income taxes, net of federal income tax	0.2		0.1		5.8
Valuation allowance on current year operations	(5.3)		(36.5)		41.8
Release valuation allowance against previously unbenefited deferred tax assets	—		—		(24.5)
Noncontrolling interests in Midstream	(4.0)		1.7		(16.0)
Intraperiod allocation	—		—		33.7
Credits	—		2.0		—
Equity and executive compensation	0.4		(0.1)		2.2
Other	—		0.1		1.2
Total	40.3	%	0.4	%	208.1	%

(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 Assets & Liabilities

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

	2021		2020
	(In millions)
Deferred Tax Liabilities
Property, plant and equipment and investments	$	(1,712)	$	(847)
Other	(38)		(45)
Total Deferred Tax Liabilities	(1,750)		(892)
Deferred Tax Assets
Net operating loss carryforwards	4,323		5,037
Tax credit carryforwards	89		135
Property, plant and equipment and investments	258		55
Accrued compensation, deferred credits and other liabilities	71		196
Asset retirement obligations	258		252
Other	277		325
Total Deferred Tax Assets	5,276		6,000
Valuation allowances (a)	(3,838)		(5,391)
Total deferred tax assets, net of valuation allowances	1,438		609
Net Deferred Tax Assets (Liabilities)	$	(312)	$	(283)

(a)In 2021, the valuation allowance decreased by $1,553 million (2020: increase of $657 million; 2019: decrease of $143 million).

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

	2021		2020
	(In millions)
Deferred income taxes (long-term asset)	$	71	$	59
Deferred income taxes (long-term liability)	(383)		(342)
Net Deferred Tax Assets (Liabilities)	$	(312)	$	(283)

Reconciliation of Unrecognized Tax Benefits

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

	2021		2020		2019
	(In millions)
Balance at January 1	$	166	$	168	$	168
Additions based on tax positions taken in the current year	12		2		2
Additions based on tax positions of prior years	3		1		1
Reductions based on tax positions of prior years	(48)		(2)		(1)
Reductions due to settlements with taxing authorities	—		(1)		—
Reductions due to lapses in statutes of limitation	—		(2)		(2)
Balance at December 31	$	133	$	166	$	168