INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes

The following summarizes domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes for the years ended December 31:



millions	2019			2018		2017
Domestic	$	(1,632	)	$	3,431	$	(609	)
Foreign	1,818			2,177		1,937
Total	$	186		$	5,608	$	1,328

Schedule of provisions (credits) for domestic and foreign income taxes on continuing operations

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



millions	2019			2018			2017
Current
Federal	$	33		$	(23	)	$	(81	)
State and Local	46			52			11
Foreign	1,641			1,077			806
Total current tax expense	$	1,720		$	1,106		$	736
Deferred
Federal	(130		)	422			(856		)
State and Local	17			12			23
Foreign	(914		)	(63		)	114
Total deferred tax expense (benefit)	$	(1,027	)	$	371		$	(719	)
Total income tax expense	$	693		$	1,477		$	17

Schedule of reconciliation of the United States federal statutory income tax rate to Occidental's worldwide effective tax rate on income from continuing operations stated as a percentage of pre-tax income

The following reconciliation of the U.S federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations for the years ended December 31 is stated as a percentage of income (loss) from continuing operations before income taxes:



	2019		2018		2017
U.S. federal statutory tax rate	21	%	21	%	35	%
Enhanced oil recovery credit and other general business credits	(4	)	(3	)	(9	)
Change in federal income tax rate	—		—		(44	)
Tax (benefit) expense due to reversal of indefinite reinvestment assertion	—		(2	)	7
Tax impact from foreign operations	187		11		12
State income taxes, net of federal benefit	28		1		2
Uncertain tax positions	13		—		—
Transaction costs	19		—		—
Non-controlling interest	(16	)	—		—
Executive compensation limitation	24		—		—
Stock warrants	(9	)	—		—
WES loss of control	113		—		—
Other	(3	)	(2	)	(2	)
Worldwide effective tax rate	373	%	26	%	1	%

Schedule of tax effects of temporary differences resulting in deferred income taxes

The tax effects of temporary differences resulting in deferred income taxes at December 31, 2019, and 2018 were as follows:



millions	2019			2018
Deferred tax liabilities
Property, plant and equipment differences	$	(12,375	)	$	(2,089	)
Equity investments, partnerships and foreign subsidiaries	(989		)	(161		)
Gross long-term deferred tax liabilities	(13,364		)	(2,250		)

Deferred tax assets
Environmental reserves	261			195
Postretirement benefit accruals	441			176
Deferred compensation and benefits	266			170
Asset retirement obligations	906			280
Foreign tax credit carryforwards	4,379			2,356
General business credit carryforwards	443			429
Net operating loss carryforward	692			29
Interest expense carryforward	492			—
All other	782			111
Gross long-term deferred tax assets	8,662			3,746
Valuation allowance	(4,959		)	(2,403		)
Net long-term deferred tax assets	$	3,703		$	1,343
Less: Foreign deferred tax asset in long-term receivables and other assets, net	$	(56	)	$	—
Total deferred income taxes, net	$	(9,717	)	$	(907	)

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



millions	2019		2018			2017
Balance at January 1	$	—	$	22		$	22
Increase related to Anadarko Acquisition	2,143		—			—
Increases related to current-year positions	30		—			—
Settlements	—		(22		)	—
Balance at December 31	$	2,173	$	—		$	22