Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Note 11. Income Taxes

Income tax expense (benefit) consists of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
(millions, except percentages)	2019			2018			2019			2018
Current	$	21		$	23		$	37		$	149
Deferred	(1		)	(7		)	(101		)	(164		)
Total Income Tax Expense (Benefit)	$	20		$	16		$	(64	)	$	(15	)
Effective Tax Rate	71.4		%	160.0		%	18.6		%	(2.7		)%

Effective Tax Rate (ETR) At the end of each interim period, we apply a forecasted annualized ETR to current period earnings or loss before tax, which can produce interim ETR fluctuations. The ETR for the six months ended June 30, 2019 varied as compared with 2018, primarily due to a $145 million discrete tax benefit recorded in 2018 as a result of the intent of the US Department of the Treasury and Internal Revenue Service to issue additional regulatory guidance associated with the Tax Cuts and Jobs Act and the transition tax. In addition, current tax expense for the six months ended June 30, 2018 includes foreign taxes related to a gain on the 2018 divestiture of a 7.5% interest in the Tamar field.

In our major tax jurisdictions, the earliest years remaining open to examination are as follows: US – 2014, Israel – 2015 (2013 with respect to Israel Oil Profits Tax) and Equatorial Guinea – 2013.