XML 59 R43.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income (loss) before income tax expense (benefit) from U.S. and international operations
Income (loss) before income tax expense (benefit) was as follows (in millions):
Year Ended December 31,
202120202019
U.S. operations$1,023 $(2,072)$2,496 
Foreign operations520 62 990 
Income (loss) before income tax expense (benefit)$1,543 $(2,010)$3,486 
Reconciliation of income tax expense (benefit) related to continuing operations to income tax expense (benefit) at statutory rate
Statutory income tax rates applicable to the countries in which we operate during each of the years ended December 31, 2021, 2020, and 2019 were as follows:
U.S.21 %
Canada15 %
U.K.19 %
Ireland13 %
Peru30 %
Mexico30 %

The following is a reconciliation of income tax expense (benefit) computed by applying statutory income tax rates to actual income tax expense (benefit) (in millions):
U.S.ForeignTotal
AmountPercentAmountPercentAmountPercent
Year ended December 31, 2021
Income tax expense at statutory rates$215 21.0 %$73 14.0 %$288 18.7 %
U.S. state and Canadian provincial
tax expense, net of federal
income tax effect
16 1.6 %53 10.2 %69 4.5 %
Permanent differences(34)(3.3)%(14)(2.7)%(48)(3.1)%
Changes in tax law (a)(10)(1.0)%74 14.2 %64 4.1 %
CARES Act (b)(56)(5.5)%— — (56)(3.6)%
GILTI tax125 12.2 %— — 125 8.1 %
Foreign tax credits(103)(10.1)%— — (103)(6.7)%
Settlements(22)(2.1)%— — (22)(1.4)%
Tax effects of income associated
with noncontrolling interests
(74)(7.2)%30 5.8 %(44)(2.9)%
Other, net(7)(0.7)%(11)(2.1)%(18)(1.2)%
Income tax expense$50 4.9 %$205 39.4 %$255 16.5 %
________________________
See notes on page 117.
U.S.ForeignTotal
AmountPercentAmountPercentAmountPercent
Year ended December 31, 2020
Income tax benefit at statutory rates$(435)21.0 %$(10)(16.1)%$(445)22.1 %
U.S. state and Canadian provincial
tax expense (benefit), net of federal
income tax effect
(33)1.6 %27 43.5 %(6)0.3 %
Permanent differences(23)1.1 %15 24.2 %(8)0.4 %
CARES Act (b)(360)17.4 %— — (360)17.9 %
Lapse of federal statute of limitations(39)1.8 %— — (39)1.9 %
Change in tax law— — 21 33.9 %21 (1.0)%
Tax effects of income associated
with noncontrolling interests
(66)3.2 %(8)(12.9)%(74)3.7 %
Other, net7 (0.3)%1 1.6 %8 (0.4)%
Income tax expense (benefit)$(949)45.8 %$46 74.2 %$(903)44.9 %
Year ended December 31, 2019
Income tax expense at statutory rates$524 21.0 %$147 14.8 %$671 19.2 %
U.S. state and Canadian provincial
tax expense, net of federal
income tax effect
16 0.7 %88 8.9 %104 3.0 %
Permanent differences(36)(1.5)%10 1.0 %(26)(0.7)%
GILTI tax115 4.6 %— — 115 3.3 %
Foreign tax credits(95)(3.8)%— — (95)(2.7)%
Repatriation withholding tax45 1.8 %— — 45 1.3 %
Tax effects of income associated
with noncontrolling interests
(77)(3.1)%2 0.2 %(75)(2.2)%
Other, net(36)(1.4)%(1)(0.1)%(37)(1.1)%
Income tax expense$456 18.3 %$246 24.8 %$702 20.1 %
________________________
(a)During the three months ended June 30, 2021, certain statutory income tax rate changes (primarily an increase in the U.K. rate from 19 percent to 25 percent effective in 2023) were enacted that resulted in the remeasurement of our deferred tax liabilities and related deferred income tax expense.
(b)See “CARES Act” on page 122 for a discussion of significant changes in tax law in the U.S. that were enacted in 2020.
Components of income tax expense (benefit)
Components of income tax expense (benefit) were as follows (in millions):
U.S.ForeignTotal
Year ended December 31, 2021
Current:
Country$68 $215 $283 
U.S. state / Canadian provincial1 97 98 
Total current69 312 381 
Deferred:
Country5 (63)(58)
U.S. state / Canadian provincial(24)(44)(68)
Total deferred(19)(107)(126)
Income tax expense$50 $205 $255 
Year ended December 31, 2020
Current:
Country$(1,033)$(34)$(1,067)
U.S. state / Canadian provincial9 (3)6 
Total current(1,024)(37)(1,061)
Deferred:
Country126 53 179 
U.S. state / Canadian provincial(51)30 (21)
Total deferred75 83 158 
Income tax expense (benefit)$(949)$46 $(903)
Year ended December 31, 2019
Current:
Country$145 $186 $331 
U.S. state / Canadian provincial37 100 137 
Total current182 286 468 
Deferred:
Country290 (28)262 
U.S. state / Canadian provincial(16)(12)(28)
Total deferred274 (40)234 
Income tax expense$456 $246 $702 
Schedule of income taxes paid (refunded), net
Income taxes paid to (received from) U.S. and foreign taxing authorities were as follows (in millions):
Year Ended December 31,
202120202019
U.S.$(878)(a)$130 $(298)(b)
Foreign36 73 182 
Income taxes paid (refunded), net
$(842)$203 $(116)
________________________
(a)This amount includes a refund of $962 million that we received related to our U.S. federal income tax return for 2020.
(b)This amount includes a refund of $348 million, including interest, that we received related to the settlement of the combined audit of our U.S. federal income tax returns for 2010 and 2011. See “Tax Returns Under Audit–U.S. Federal” on page 121.
Deferred income tax assets and liabilities
The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions):
December 31,
20212020
Deferred income tax assets:
Tax credit carryforwards$679 $681 
NOLs697 678 
Inventories217 70 
Compensation and employee benefit liabilities123 199 
Environmental liabilities53 64 
Other149 128 
Total deferred income tax assets1,918 1,820 
Valuation allowance(1,262)(1,223)
Net deferred income tax assets656 597 
Deferred income tax liabilities:
Property, plant, and equipment4,866 4,895 
Deferred turnaround costs308 302 
Inventories191 269 
Investments268 171 
Other233 235 
Total deferred income tax liabilities5,866 5,872 
Net deferred income tax liabilities$5,210 $5,275 
Income tax credit and loss carryforwards
We had the following income tax credit and loss carryforwards as of December 31, 2021 (in millions):
AmountExpiration
U.S. state income tax credits (gross amount)$80 2022 through 2033
U.S. state income tax credits (gross amount)21 Unlimited
U.S. foreign tax credits598 2027
U.S. state income tax NOLs (gross amount)12,394 2022 through 2041
U.S. state income tax NOLs (gross amount)465 Unlimited
Foreign NOLs (gross amount)38 2025 through 2031
Foreign NOLs (gross amount)59 Unlimited
Reconciliation of the change in unrecognized tax benefits
The following is a reconciliation of the change in unrecognized tax benefits, excluding related interest and penalties, (in millions):
Year Ended December 31,
202120202019
Balance as of beginning of year$847 $897 $970 
Additions for tax positions related to the current year3 5 19 
Additions for tax positions related to prior years13 9 30 
Reductions for tax positions related to prior years(25)(20)(101)
Reductions for tax positions related to the lapse of
applicable statute of limitations
— (44)(14)
Settlements(22)— (7)
Balance as of end of year$816 $847 $897 
Additional information about our liability for unrecognized tax benefits
The following is a reconciliation of unrecognized tax benefits to our liability for unrecognized tax benefits presented in our balance sheets (in millions).
December 31,
20212020
Unrecognized tax benefits$816 $847 
Tax refund claims not yet filed but that we intend to file(28)(26)
Interest and penalties86 110 
Liability for unrecognized tax benefits presented in our balance sheets$874 $931 
Our liability for unrecognized tax benefits is reflected in the following balance sheet line items (in millions):
December 31,
20212020
Income taxes payable$1 $59 
Other long-term liabilities863 859 
Deferred tax liabilities10 13 
Liability for unrecognized tax benefits presented in our balance sheets$874 $931