INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

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	2020		2019		2018
Domestic	$	(15,322)	$	(1,632)	$	3,431
Foreign	(383)		1,986		2,177
Total	$	(15,705)	$	354	$	5,608

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	2020		2019		2018
Current
Federal	$	(126)	$	33	$	(23)
State and Local	6		46		52
Foreign	465		1,809		1,077
Total current tax expense	$	345	$	1,888	$	1,106
Deferred
Federal	(2,384)		(130)		422
State and Local	(103)		17		12
Foreign	(30)		(914)		(63)
Total deferred tax expense (benefit)	$	(2,517)	$	(1,027)	$	371
Total income tax expense (benefit)	$	(2,172)	$	861	$	1,477

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:


	2020		2019		2018
U.S. federal statutory tax rate	21	%	21	%	21	%
Enhanced oil recovery credit and other general business credits	—		(2)		(3)
Goodwill impairment	(3)		—		—
Tax benefit due to reversal of indefinite reinvestment assertion	—		—		(2)
Tax impact from foreign operations	(4)		135		11
State income taxes, net of federal benefit	—		14		1
Uncertain tax positions	—		7		—
Transaction costs	—		10		—
Non-controlling interest	—		(8)		—
Executive compensation limitation	—		12		—
Stock warrants	—		(5)		—
WES loss of control	—		58		—
Other	—		1		(2)
Worldwide effective tax rate	14	%	243	%	26	%

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, 2020, and 2019 were as follows:


millions	2020		2019
Deferred tax liabilities
Property, plant and equipment differences	$	(10,744)	$	(12,375)
Equity investments, partnerships and foreign subsidiaries	(658)		(989)
Gross long-term deferred tax liabilities	(11,402)		(13,364)

Deferred tax assets
Environmental reserves	257		261
Postretirement benefit accruals	398		441
Deferred compensation and benefits	186		266
Asset retirement obligations	942		906
Foreign tax credit carryforwards	4,465		4,379
General business credit carryforwards	607		443
Net operating loss carryforward	1,797		692
Interest expense carryforward	668		492
All other	720		782
Gross long-term deferred tax assets	10,040		8,662
Valuation allowance	$	(5,695)	$	(4,959)
Net long-term deferred tax assets	$	4,345	$	3,703
Total deferred income taxes, net	$	(7,057)	$	(9,661)
Less: foreign deferred tax asset in long-term receivables and other assets, net	$	(56)	$	(56)
Total deferred income taxes	$	(7,113)	$	(9,717)

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	2020		2019		2018
Balance at January 1	$	2,173	$	—	$	22
Increase related to Anadarko Acquisition	—		2,143		—
Increases related to current-year positions	14		30		—
Settlements	(42)		—		(22)
Reductions for tax positions of prior years	(100)		—		—
Balance at December 31	$	2,045	$	2,173	$	—