Provision (Benefit) for Income Taxes

3 Months Ended

Mar. 31, 2014

Note 4 – Provision (Benefit) for Income Taxes

The Provision (benefit) for income taxes from continuing operations includes:



	Three months ended March 31,
	2014			2013
	(Millions)
Current:
Federal	$	137		$	(11	)
State	5			2
Foreign	2			2
	144			(7		)
Deferred:
Federal	(96		)	82
State	(1		)	13
Foreign	4			8
	(93		)	103
Total provision (benefit)	$	51		$	96

The effective income tax rate for the total provision for the three months ended March 31, 2014, is less than the federal statutory rate primarily due to a tax benefit related to the completion of the Canada Dropdown and the impact of nontaxable noncontrolling interests, partially offset by the effect of state income taxes and taxes on foreign operations.

The effective income tax rate for the total provision for the three months ended March 31, 2013, is less than the federal statutory rate primarily due to the impact of nontaxable noncontrolling interests and taxes on foreign operations, partially offset by the effect of state income taxes.

As a result of closing the Canada Dropdown, $90 million of previously deferred tax liability has been reclassified as a current income tax liability in the first quarter of 2014.

During the next 12 months, we do not expect ultimate resolution of any unrecognized tax benefit associated with domestic or international matters to have a material impact on our unrecognized tax benefit position.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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