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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income (Loss) Before Income Taxes
Income (loss) before income taxes is composed of the following:
 For the Year Ended December 31,    
 202020192018
 (In millions)
U.S.$(4,581)$(4,397)$(723)
Foreign(259)1,389 1,681 
Total$(4,840)$(3,008)$958 
Total Provision for Income Taxes
The total income tax provision consists of the following:
 For the Year Ended December 31,    
 202020192018
 (In millions)
Current income taxes:
Federal$(2)$1 $(1)
State— — — 
Foreign178 659 895 
176 660 894 
Deferred income taxes:
Federal— 67 (65)
State— — 2 
Foreign(112)(53)(159)
(112)14 (222)
Total$64 $674 $672 
Reconciliation of Tax of Income Before Income Taxes and Total Tax Expense A reconciliation of the tax on the Company’s income (loss) before income taxes and total tax expense is shown below:
 For the Year Ended December 31,    
 202020192018
 (In millions)
Income tax expense (benefit) at U.S. statutory rate$(1,016)$(631)$201 
State income tax, less federal effect(1)
— 1 2 
Taxes related to foreign operations97 328 436 
Tax credits(13)(6)(13)
Tax on deemed repatriation of foreign earnings— — 103 
Foreign tax credits— — (336)
Change in U.S. tax rate— — 161 
Net change in tax contingencies1 1 (2)
Goodwill impairment35 — — 
Sale of North Sea assets— — (30)
Valuation allowances(1)
965 972 118 
All other, net(5)9 32 
$64 $674 $672 
(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 as of December 31:
 20202019
 (In millions)
Deferred tax assets:
U.S. and state net operating losses$2,306 $2,108 
Capital losses633 626 
Tax credits and other tax incentives33 32 
Foreign tax credits2,241 2,241 
Accrued expenses and liabilities93 97 
Asset retirement obligation654 618 
Property & equipment261 — 
Investment in Altus Midstream LP76 107 
Net interest expense limitation252 162 
Lease liability79 108 
Other1 88 
Total deferred tax assets6,629 6,187 
Valuation allowance(5,991)(4,959)
Net deferred tax assets638 1,228 
Deferred tax liabilities:
Deferred income— 1 
Equity investments4 — 
Property and equipment750 1,432 
Right-of-use asset74 106 
Other13 6 
Total deferred tax liabilities841 1,545 
Net deferred income tax liability$203 $317 
Net deferred tax assets and liabilities are included in the consolidated balance sheet as of December 31 as follows:
 20202019
 (In millions)
Assets:
Deferred charges and other$12 $29 
Liabilities:
Income taxes215 346 
Net deferred income tax liability$203 $317 
Summary of Valuation Allowance Against Certain Foreign Net Deferred Tax Assets and State Net Operating Losses
In 2020, 2019, and 2018, the Company’s valuation allowance increased by $1.0 billion, $1.0 billion, and $131 million, respectively, as detailed in the table below:
202020192018
 (In millions)
Balance at beginning of year$4,959 $3,947 $3,816 
State(1)
67 41 15 
U.S.960 971 124 
Foreign5 — (8)
Balance at end of year$5,991 $4,959 $3,947 
(1)Reported as a component of state income taxes.
Net Operating Losses
On December 31, 2020, the Company had net operating losses as follows:
 Amount    Expiration    
 (In millions) 
U.S.$8,859 2020 - Indefinite
State6,566 Various
Schedule of Foreign Tax Credit Carryforward
On December 31, 2020, the Company had foreign tax credits as follows:
 Amount    Expiration    
 (In millions) 
Foreign tax credits$2,241 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:
202020192018
 (In millions)
Balance at beginning of year$82 $24 $26 
Additions based on tax positions related to prior year— 49 — 
Additions based on tax positions related to the current year11 9 — 
Reductions for tax positions of prior years— — (2)
Balance at end of year$93 $82 $24 
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.2014
Egypt2005
U.K.2019