Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit)

The following summarizes components of income tax expense (benefit) for the years ended December 31:



millions	2013			2012			2011
Current
Federal	$	113		$	45		$	(381	)
State	42			25			1
Foreign	873			891			977
	1,028			961			597
Deferred
Federal	94			(30		)	(1,470		)
State	(9		)	115			(68		)
Foreign	52			74			85
	137			159			(1,453		)
Income tax expense (benefit)	$	1,165		$	1,120		$	(856	)

Schedule of Effective Income Tax Rate Reconciliation

The following summarizes the sources of these differences for the years ended December 31:



millions except percentages	2013			2012			2011
Income (loss) before income taxes
Domestic	$	428		$	132		$	(5,416	)
Foreign	1,678			3,433			1,992
Total	$	2,106		$	3,565		$	(3,424	)
U.S. federal statutory tax rate	35		%	35		%	35		%
Tax computed at the U.S. federal statutory rate	$	737		$	1,248		$	(1,198	)
Adjustments resulting from
State income taxes (net of federal income tax benefit)	23			93			(44		)
Tax impact from foreign operations	167			226			93
Non-deductible Algerian exceptional profits tax	144			188			258
Non-taxable Algeria exceptional profits tax settlement	13			(679		)	—
Deferred tax adjustments	76			22			5
Non-deductible Tronox-related contingent loss	36			—			—
Income attributable to noncontrolling interests	(48		)	(24		)	(28		)
Items resulting from business acquisitions	—			—			19
Other—net	17			46			39
Income tax expense (benefit)	$	1,165		$	1,120		$	(856	)
Effective tax rate	55		%	31		%	25		%

Deferred Tax Assets (Liabilities) Table

The following summarizes components of total deferred taxes at December 31:



millions	2013			2012
Federal	$	(8,246	)	$	(7,890	)
State, net of federal	(332		)	(325		)
Foreign	(307		)	(216		)
Total deferred taxes	$	(8,885	)	$	(8,431	)

The following summarizes tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31:



millions	2013			2012
Current deferred tax assets	$	412		$	328
Valuation allowances on deferred tax assets not expected to be realized	(52		)	—
Net current deferred tax assets	360			328
Oil and gas exploration and development operations	(8,213		)	(8,683		)
Mineral operations	(410		)	(408		)
Midstream and other depreciable properties	(1,586		)	(1,295		)
Other	(499		)	(152		)
Gross long-term deferred tax liabilities	(10,708		)	(10,538		)
Oil and gas exploration and development costs	94			762
Net operating loss carryforward	599			477
Foreign tax credit carryforward and alternative minimum tax credit carryforward	325			450
Other	1,211			1,012
Gross long-term deferred tax assets	2,229			2,701
Valuation allowances on deferred tax assets not expected to be realized	(766		)	(922		)
Net long-term deferred tax assets	1,463			1,779
Net long-term deferred tax liabilities	(9,245		)	(8,759		)
Total deferred taxes	$	(8,885	)	$	(8,431	)

Valuation Allowances on Deferred Tax Assets Rollforwad

The following summarizes changes in the balance of valuation allowances on deferred tax assets:



millions	2013			2012			2011
Balance at January 1	$	(922	)	$	(555	)	$	(454	)
Additions	(38		)	(426		)	(138		)
Reductions	142			59			37
Balance at December 31	$	(818	)	$	(922	)	$	(555	)

Taxes Receivable (Payable) Table

The following summarizes taxes receivable (payable) related to income tax expense (benefit) at December 31:



Balance Sheet Classification	2013			2012
Income taxes receivable
Accounts receivable—other	$	66		$	179
Other assets	35			2
	101			181
Income taxes (payable)
Accrued expense	(82		)	(38		)
Net income taxes receivable (payable)	$	19		$	143

Schedule of Operating Loss, Tax Credit, And Other Carryforwards

Tax carryforwards available for use on future income tax returns at December 31, 2013, were as follows:



millions	Domestic		Foreign		Expiration
Net operating loss—foreign	$	—	$	1,265	2014 - Indefinite
Net operating loss—state	$	4,527	$	—	2014-2032
Foreign tax credits	$	325	$	—	2015-2023
Texas margins tax credit	$	35	$	—	2026

Unrecognized Tax Benefits Rollforward

Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions were as follows:



	Assets (Liabilities)
millions	2013			2012			2011
Balance at January 1	$	(46	)	$	(31	)	$	(32	)
Increases related to prior-year tax positions	(54		)	(17		)	—
Decreases related to prior-year tax positions	3			3			3
Increases related to current-year tax positions	(72		)	(1		)	(10		)
Settlements	5			—			8
Lapse of statute of limitations	17			—			—
Balance at December 31	$	(147	)	$	(46	)	$	(31	)

Tax Years Subject to Examination by Major Tax Jurisdiction Table

The following lists the tax years subject to examination by major tax jurisdiction:



	Tax Year
United States	2007-2013
China	2009-2013
Algeria	2010-2013
Ghana	2006-2013