INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Before Income Taxes

Income from continuing operations before income taxes is composed of the following:

	For the Year Ended December 31,
	2013		2012		2011
	(In millions)
U.S.	$	1,191	$	1,605	$	2,373
Foreign		3,213		3,235		5,691
Total	$	4,404	$	4,840	$	8,064

Total Provision for Income Taxes

The total provision for income taxes from continuing operations consists of the following:

	For the Year Ended December 31,
	2013			2012			2011
	(In millions)
Current taxes:
Federal	$	(29	)	$	(150	)	$	64
State		—			—			2
Foreign		1,692			2,349			2,182
		1,663			2,199			2,248
Deferred taxes:
Federal		509			596			656
State		44			10			17
Foreign		(292	)		48			571
		261			654			1,244
Total	$	1,924		$	2,853		$	3,492

Reconciliation of Tax of Income Before Income Taxes and Total Tax Expense

A reconciliation of the tax on the Company’s income from continuing operations before income taxes and total tax expense is shown below:

	For the Year Ended December 31,
	2013			2012			2011
	(In millions)
Income tax expense at U.S. statutory rate	$	1,541		$	1,694		$	2,823
State income tax, less federal benefit		29			6			12
Taxes related to foreign operations		200			767			563
Tax credits		6			(4	)		(14	)
Deferred tax on distributed foreign earnings		225			—			—
Current and deferred taxes related to currency fluctuations		(144	)		26			(67	)
Change in U.K. tax rate		—			118			218
Net change in tax contingencies		(10	)		(115	)		(6	)
Valuation allowances		132			341			8
All other, net		(55	)		20			(45	)
	$	1,924		$	2,853		$	3,492

Net Deferred Tax Liability

The net deferred tax liability consists of the following:

	December 31,
	2013			2012
	(In millions)
Deferred tax assets:
Deferred income	$	153		$	33
Federal and state net operating loss carryforwards		900			932
Foreign net operating loss carryforwards		156			61
Tax credits		66			78
Accrued expenses and liabilities		162			2
Asset retirement obligation		1,231			1,677
Total deferred tax assets		2,668			2,783
Valuation allowance		(651	)		(419	)
Net deferred tax assets		2,017			2,364
Deferred tax liabilities:
Other		29			23
Depreciation, depletion and amortization		10,224			10,213
Total deferred tax liabilities		10,253			10,236
Net deferred income tax liability	$	8,236		$	7,872

Net Operating Losses

On December 31, 2013, the Company had net operating losses as follows:

	December 31, 2013
	Amount		Expiration
	(In millions)
Net operating losses:
U.S. – Federal	$	1,558	2032 - 2034
U.S. – Federal (Mariner IRC §382 limited)		520	2018 - 2030
U.S. – Federal (Cordillera IRC §382 limited)		183	2026 - 2032
U.S. – State		2,242	Various
Canada		5	2014
Australia		59	Indefinite
Argentina		299	2014

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2013		2012			2011
	(In millions)
Balance at beginning of year	$	3	$	97		$	110
Additions based on tax positions related to the current year		—		4			13
Reductions for tax positions of prior years		—		(33	)		(4	)
Settlements		—		(65	)		(22	)
Balance at end of year	$	3	$	3		$	97

Key Jurisdictions of Company's Earliest Open Tax Years

Apache’s earliest open tax years in its key jurisdictions are as follows:

Jurisdiction
U.S.	2010
Canada	2009
Egypt	1998
Australia	2009
U.K.	2011
Argentina(1)	2006

⁽¹⁾  On March 12, 2014, Apache divested of its Argentina operations.