Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

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



millions	2015			2014			2013
Current
Federal	$	(177	)	$	188		$	113
State	(18		)	2			42
Foreign	495			1,574			873
	300			1,764			1,028
Deferred
Federal	(2,929		)	(389		)	94
State	(145		)	27			(9		)
Foreign	(103		)	215			52
	(3,177		)	(147		)	137
Total income tax expense (benefit)	$	(2,877	)	$	1,617		$	1,165

Schedule of Effective Income Tax Rate Reconciliation

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



millions except percentages	2015			2014			2013
Income (loss) before income taxes
Domestic	$	(9,155	)	$	(3,564	)	$	428
Foreign	(534		)	3,618			1,678
Total	$	(9,689	)	$	54		$	2,106
U.S. federal statutory tax rate	35		%	35		%	35		%
Tax computed at the U.S. federal statutory rate	$	(3,391	)	$	19		$	737
Adjustments resulting from
State income taxes (net of federal income tax benefit)	(81		)	(11		)	23
Tax impact from foreign operations	299			62			204
Non-deductible Algerian exceptional profits tax	102			193			144
Net changes in uncertain tax positions	54			1,427			(29		)
Deferred tax adjustments	10			15			76
Non-deductible Tronox-related contingent loss	—			(36		)	36
(Income) loss attributable to noncontrolling interests	42			(66		)	(48		)
Non-deductible Deepwater Horizon costs	26			32			—
Federal manufacturing deduction	—			(27		)	—
Dispositions of non-deductible goodwill	62			21			—
Other, net	—			(12		)	22
Total income tax expense (benefit)	$	(2,877	)	$	1,617		$	1,165
Effective tax rate	30		%	2,994		%	55		%

Deferred Tax Assets (Liabilities) Table

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



millions	2015			2014
Federal	$	(4,721	)	$	(7,649	)
State, net of federal	(248		)	(341		)
Foreign	(431		)	(537		)
Total deferred taxes	$	(5,400	)	$	(8,527	)

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



millions	2015			2014
Deferred tax liabilities
Oil and gas exploration and development operations	$	(5,643	)	$	(8,418	)
Midstream and other depreciable properties	(1,049		)	(1,611		)
Mineral operations	(492		)	(412		)
Other	(470		)	(351		)
Gross long-term deferred tax liabilities	(7,654		)	(10,792		)
Deferred tax assets
Foreign and state net operating loss carryforwards	586			558
U.S. foreign tax credit carryforwards	1,254			166
Compensation and benefit plans	615			701
Mark to market on derivatives	441			354
Settlement agreement related to the Tronox Adversary Proceeding	—			590
Other	761			760
Gross long-term deferred tax assets	3,657			3,129
Valuation allowances on deferred tax assets not expected to be realized	(1,403		)	(864		)
Net long-term deferred tax assets	2,254			2,265
Total deferred taxes	$	(5,400	)	$	(8,527	)

Valuation Allowances on Deferred Tax Assets Rollforwad

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



millions	2015			2014			2013
Balance at January 1	$	(864	)	$	(818	)	$	(922	)
Changes due to U.S. foreign tax credits	(384		)	11			58
Changes due to foreign and state net operating loss carryforwards	10			64			(57		)
Changes due to foreign capitalized costs	(165		)	(121		)	103
Balance at December 31	$	(1,403	)	$	(864	)	$	(818	)

Schedule of Operating Loss, Tax Credit, And Other Carryforwards

Tax carryforwards available for use on future income tax returns, prior to valuation allowance, at December 31, 2015, were as follows:



millions	Domestic		Foreign		Expiration
Net operating loss—foreign	$	—	$	1,264	2016 - Indefinite
Net operating loss—state	$	4,762	$	—	2016-2035
Foreign tax credits	$	1,254	$	—	2023-2026
Texas margins tax credit	$	33	$	—	2026

Taxes Receivable (Payable) Table

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



millions
Balance Sheet Classification	2015			2014
Income taxes receivable
Accounts receivable—other	$	1,046		$	93
Other assets	61			35
	1,107			128
Income taxes (payable)
Accrued expense	(9		)	(152		)
Total net income taxes receivable (payable)	$	1,098		$	(24	)

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	2015			2014			2013
Balance at January 1	$	(1,687	)	$	(147	)	$	(46	)
Increases related to prior-year tax positions	(99		)	(11		)	(54		)
Decreases related to prior-year tax positions	89			39			3
Increases related to current-year tax positions	(263		)	(1,568		)	(72		)
Settlements	180			—			5
Lapse of statute of limitations	—			—			17
Balance at December 31	$	(1,780	)	$	(1,687	)	$	(147	)

Tax Years Subject to Examination by Major Tax Jurisdiction Table

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



	Tax Years
United States	2008-2015
Algeria	2012-2015
Ghana	2006-2015