INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

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

	For the Year Ended December 31,
	2017			2016			2015
	(In millions)
U.S.	$	(3,620	)	$	(997	)	$	(9,386	)
Foreign	4,538			(685		)	(2,783		)
Total	$	918		$	(1,682	)	$	(12,169	)

Total Provision for Income Taxes

The total income tax provision (benefit) from continuing operations consists of the following:

	For the Year Ended December 31,
	2017			2016			2015
	(In millions)
Current income taxes:
Federal	$	(38	)	$	(14	)	$	363
State	(8		)	(30		)	41
Foreign	641			435			31
	595			391			435
Deferred income taxes:
Federal	(1,010		)	(257		)	(1,123		)
State	—			—			(51		)
Foreign	(170		)	(576		)	(271		)
	(1,180		)	(833		)	(1,445		)
Total	$	(585	)	$	(442	)	$	(1,010	)

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

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

	For the Year Ended December 31,
	2017			2016			2015
	(In millions)
Income tax expense (benefit) at U.S. statutory rate	$	321		$	(589	)	$	(4,259	)
State income tax, less federal effect(1)	(6		)	(19		)	(7		)
Taxes related to foreign operations	(105		)	303			(662		)
Tax credits	(33		)	(1		)	(6		)
Tax on distributed foreign earnings	—			80			726
Tax on deemed repatriation of foreign earnings	419			—			—
Foreign tax credits	(201		)	(136		)	(2,090		)
Deferred tax on undistributed foreign earnings	(1,872		)	(31		)	1,903
Tax impact of goodwill adjustments	—			—			82
Change in U.K. tax rate	—			(238		)	(414		)
Change in U.S. tax rate	516			—			—
Net change in tax contingencies	(1		)	(19		)	20
Canadian USD functional currency election	—			158			—
Sale of Canadian assets	279			—			—
Sale of North Sea GTP assets	(48		)	—			—
Valuation allowances(1)	161			10			3,746
All other, net	(15		)	40			(49		)
	$	(585	)	$	(442	)	$	(1,010	)

(1) The change in state valuation allowance is included as a component of state income tax.

Net Deferred Tax Liability

The net deferred income tax liability consists of the following:

	December 31,
	2017			2016
	(In millions)
Deferred tax assets:
Deferred income	$	13		$	105
U.S. and state net operating losses	1,230			1,095
Capital losses	620			—
Foreign net operating losses	6			1,424
Tax credits and other tax incentives	28			62
Foreign tax credits	2,427			2,226
Accrued expenses and liabilities	110			153
Asset retirement obligation	629			875
Property and equipment	—			1,189
Other	42			—
Total deferred tax assets	5,105			7,129
Valuation allowance	(3,816		)	(5,401		)
Net deferred tax assets	1,289			1,728
Deferred tax liabilities:
Investment in foreign subsidiaries	—			1,872
Equity investments	18			23
Property and equipment	1,798			1,533
Other	—			5
Total deferred tax liabilities	1,816			3,433
Net deferred income tax liability	$	527		$	1,705

Net deferred tax assets and liabilities are included in the consolidated balance sheet as follows:

	December 31,
	2017		2016
	(In millions)
Assets:
Deferred charges and other	$	18	$	5
Liabilities:
Deferred income taxes	545		1,710
Net deferred income tax liability	$	527	$	1,705

Summary of Valuation Allowance Against Certain Foreign Net Deferred Tax Assets and State Net Operating Losses

In 2017, 2016, and 2015, the Company’s valuation allowance decreased by $1.6 billion, decreased by $33 million, and increased by $3.9 billion, respectively, as detailed in the table below:

	2017			2016			2015
	(In millions)
Balance at beginning of year	$	5,401		$	5,434		$	1,564
State(1)	139			(43		)	151
U.S.	905			139			2,159
Foreign(2)	(2,629		)	(129		)	1,560
Balance at end of year	$	3,816		$	5,401		$	5,434

(1) Reported as a component of state income taxes.

(2) In 2017, the Company completed the sale of its Canadian assets. As such, except for capital losses incurred on the sale, the deferred tax assets, liabilities, and valuation allowance related to these assets were removed for 2017. In 2015, Apache's subsidiaries completed the sale of its interest in the Kitimat LNG project. As such, the deferred tax assets, liabilities, and valuation allowance related to the project were removed for 2015

Net Operating Losses

On December 31, 2017, the Company had net operating losses as follows:

	Amount		Expiration
	(In millions)
Net operating losses:
U.S.	$	4,037	2018 - 2038
State	5,301		Various

Schedule of Foreign Tax Credit Carryforward

On December 31, 2017, the Company had foreign tax credits as follows:

	Amount		Expiration
	(In millions)
Foreign tax credits	$	2,427	2025-2026

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:

	2017			2016			2015
	(In millions)
Balance at beginning of year	$	15		$	19		$	—
Additions based on tax positions related to the current year	12			15			19
Reductions for tax positions of prior years	(1		)	(19		)	—
Balance at end of year	$	26		$	15		$	19

Key Jurisdictions of Company's Earliest Open Tax Years

U.S.	2012
Egypt	1998
U.K.	2016