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Income Taxes
9 Months Ended
Sep. 30, 2013
Income Taxes Disclosure [Abstract]  
Income Taxes [Text Block]
Income Taxes
The effective income tax rate is influenced by a variety of factors including the geographic sources of income and the relative magnitude of these sources of income. The provision for income taxes is allocated on a discrete, stand-alone basis to pretax segment income and to individual items not allocated to segments. The difference between the total provision and the sum of the amounts allocated to segments and to individual items not allocated to segments is reported in “Corporate and other unallocated items” in Note 7.
Our effective income tax rates in the first nine months of 2013 and 2012 were 68 percent and 72 percent.   These rates are higher than the U.S. statutory rate of 35 percent due to earnings from foreign jurisdictions, primarily Norway and Libya, where the tax rates are in excess of the U.S. statutory rate.  In Libya, where the statutory tax rate is in excess of 90 percent, sales decreased in the third quarter of 2013 due to labor strikes at the Es Sider oil terminal and there remains uncertainty around future production and sales levels. Reliable estimates of 2013 and 2012 annual ordinary income from our Libyan operations could not be made and the range of possible scenarios when including ordinary income from our Libyan operations in the worldwide annual effective tax rate calculation demonstrates significant variability.  As such, for the first nine months of 2013 and 2012, estimated annual effective tax rates were calculated excluding Libya and applied to consolidated ordinary income excluding Libya and the tax provision applicable to Libyan ordinary income was recorded as a discrete item in the periods.  Excluding Libya, the effective tax rates would be 60 percent and 64 percent for the first nine months of 2013 and 2012. In the third quarter of 2013, we recorded a net favorable tax adjustment of $42 million, largely related to greater expected utilization of foreign tax credits in future periods than previously estimated.