Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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)	2022		2021		2020
Income (loss) from continuing operations before income taxes
United States	$	1,306,200	$	114,659	$	(1,407,598)
Foreign	144,061		(71,768)		(141,437)
Total	$	1,450,261	$	42,891	$	(1,549,035)
Income tax expense (benefit)
U.S. Federal – Current	$	—	$	—	$	(10,627)
– Deferred	234,749		(1,480)		(249,253)
Total U.S. Federal	234,749		(1,480)		(259,880)
State	9,010		3,303		(8,413)
Foreign – Current	18,134		(5,158)		(5,072)
– Deferred	47,571		(2,527)		(20,376)
Total Foreign	65,705		(7,685)		(25,448)
Total	$	309,464	$	(5,862)	$	(293,741)

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)	2022		2021		2020
Income tax expense (benefit) based on the U.S. statutory tax rate	$	304,555	$	9,007	$	(325,299)

Foreign income (loss) subject to foreign tax rates different than the U.S. statutory rate	10,823		13,270		(3,791)
State income taxes, net of federal benefit	7,118		2,500		(6,646)
U.S. tax benefit on certain foreign upstream investments	—		(8,916)		—
Change in deferred tax asset valuation allowance related to other foreign exploration expenditures	24,748		4,814		7,707
Tax effect on income attributable to noncontrolling interest	(36,471)		(25,450)		23,712
Other, net	(1,309)		(1,087)		10,576
Total	$	309,464	$	(5,862)	$	(293,741)

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, 2022 and 2021 showing the tax effects of significant temporary differences follows.


(Thousands of dollars)	2022		2021
Deferred tax assets
Property and leasehold costs	$	242,467	$	241,833
Liabilities for dismantlements	31,017		37,728
Postretirement and other employee benefits	86,798		114,790

U. S. net operating loss	442,699		577,531
Investment in partnership	11,595		39,396
Other deferred tax assets	111,212		135,838
Total gross deferred tax assets	925,788		1,147,116
Less valuation allowance	(136,008)		(111,259)
Net deferred tax assets	789,780		1,035,857
Deferred tax liabilities
Deferred tax on undistributed foreign earnings	(5,000)		(5,000)
Accumulated depreciation, depletion and amortization	(796,510)		(786,846)

Other deferred tax liabilities	(85,284)		(41,387)
Total gross deferred tax liabilities	(886,794)		(833,233)
Net deferred tax (liabilities) assets	$	(97,014)	$	202,624

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)	2022		2021		2020
Balance at January 1	$	2,903	$	2,832	$	2,538
Additions for tax positions related to current year	77		71		3,042
Additions for tax positions related to prior year	948		—		—

Settlements with taxing authorities	—		—		(2,748)

Balance at December 31	$	3,928	$	2,903	$	2,832