Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The components of income (loss) from continuing operations before income taxes for each of the three years presented and income tax expense (benefit) attributable thereto were as follows.



(Thousands of dollars)	2019			2018		2017
Income (loss) from continuing operations before income taxes
United States	$	282,199		14,907		(299,349	)
Foreign	(78,701		)	28,095		16,465
Total	$	203,498		43,002		(282,884	)
Income tax expense (benefit)
U.S. Federal – Current	$	—		(9,765	)	—
– Deferred	30,598			(131,200	)	156,065
Total U.S. Federal	30,598			(140,965	)	156,065
State	5,139			3,299		4,230
Foreign – Current	(17,823		)	61,257		59
– Deferred	(3,231		)	(49,727	)	109,777
Total Foreign	(21,054		)	11,530		109,836
Total	$	14,683		(126,136	)	270,131

Effective Income Tax Rates

The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense.



(Thousands of dollars)	2019			2018		2017
Income tax expense (benefit) based on the U.S. statutory tax rate	$	42,735		9,031		(98,868	)
Revaluation of deferred tax (U.S. tax reform)	—			—		118,004
Alberta tax rate reduction and tax impact of deemed repatriation of foreign invested earnings (U.S. tax reform)	(17,019		)	(135,700	)	156,000
Deferred tax effect on Canadian earnings no longer indefinitely invested	—			—		65,000
Foreign income (loss) subject to foreign tax rates different than the U.S.statutory rate	(1,122		)	5,822		2,032
State income taxes, net of federal benefit	4,060			2,607		2,438
U.S. tax benefit on certain foreign upstream investments	(14,975		)	(14,702	)	(32,926	)
Increase in deferred tax asset valuation allowance related to other foreign exploration expenditures	10,927			3,283		18,601
Tax effect on income attributable to noncontrolling interest	(21,750		)	(1,753	)	—
Other, net	11,827			5,276		39,850
Total	$	14,683		(126,136	)	270,131

Analysis of Deferred Tax Assets and Deferred Tax Liabilities Showing Tax Effects of Significant Temporary Differences

An analysis of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 showing the tax effects of significant temporary differences follows.



(Thousands of dollars)	2019			2018
Deferred tax assets
Property and leasehold costs	$	233,351		231,389
Liabilities for dismantlements	78,361			88,075
Postretirement and other employee benefits	125,250			113,826
Alternative minimum tax	9,765			9,765
U. S. net operating loss	495,252			496,629
Other deferred tax assets	66,795			19,974
Total gross deferred tax assets	1,008,774			959,658
Less valuation allowance	(103,113		)	(166,991	)
Net deferred tax assets	905,661			792,667
Deferred tax liabilities
Deferred tax on undistributed foreign earnings	(5,000		)	(5,000	)
Accumulated depreciation, depletion and amortization	(938,614		)	(710,384	)
Investment in partnership	(14,250		)	(32,178	)
Other deferred tax liabilities	(25,708		)	(28,802	)
Total gross deferred tax liabilities	(983,572		)	(776,364	)
Net deferred tax (liabilities) assets	$	(77,911	)	16,303

Reconciliation of Beginning and Ending Amount of Consolidated Liability for Unrecognized Income Tax Benefits

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the three years presented is shown in the following table.



(Thousands of dollars)	2019			2018		2017
Balance at January 1	$	2,903		3,437		7,417
Additions for tax positions related to current year	456			454		769
Settlements due to lapse of time	(821		)	(988	)	(4,834	)
Foreign currency translation effect	—			—		85
Balance at December 31	$	2,538		2,903		3,437