Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of the (provision)/benefit for income taxes on continuing operations

The components of the (provision) benefit for income taxes on continuing operations were:

	Year Ended December 31
Millions of dollars	2020		2019		2018
Current income taxes:
Federal	$	1	$	32	$	19
Foreign	(167)		(426)		(428)
State	—		(9)		(15)
Total current	(166)		(403)		(424)
Deferred income taxes:
Federal	372		383		286
Foreign	2		(36)		9
State	70		49		(28)
Total deferred	444		396		267
Income tax (provision) benefit	$	278	$	(7)	$	(157)

United States and foreign components of income from continuing operations before income taxes

The United States and foreign components of income (loss) from continuing operations before income taxes were as follows:

	Year Ended December 31
Millions of dollars	2020		2019		2018
United States	$	(3,031)	$	(1,517)	$	1,097
Foreign	(189)		395		717
Total	$	(3,220)	$	(1,122)	$	1,814

Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the US statutory rate to income from continuing operations before income taxes

Reconciliations between the actual (provision) benefit for income taxes on continuing operations and that computed by applying the United States statutory rate to income (loss) from continuing operations before income taxes were as follows:

	Year Ended December 31
	2020		2019		2018
United States statutory rate	21.0	%	21.0	%	21.0	%
Impact of impairments and other charges	(12.3)		(20.9)		—
Impact of foreign income taxed at different rates	(1.1)		0.8		(3.0)
Valuation allowance against tax assets	0.9		(10.7)		(16.2)
Adjustments of prior year taxes	0.7		13.0		2.0
State income taxes	—		(1.3)		1.9
Venezuela adjustment	—		—		5.7
Impact of U.S. tax reform	—		—		(2.6)
Other items, net	(0.6)		(2.5)		(0.1)
Total effective tax rate on continuing operations	8.6	%	(0.6)	%	8.7	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The primary components of our deferred tax assets and liabilities were as follows:

	December 31
Millions of dollars	2020		2019
Gross deferred tax assets:
Net operating loss carryforwards	$	1,691	$	1,301
Foreign tax credit carryforwards	945		877
Research and development tax credit carryforwards	196		198
Employee compensation and benefits	237		215
Accrued liabilities	263		316
Other	469		382
Total gross deferred tax assets	3,801		3,289
Gross deferred tax liabilities:
Depreciation and amortization	7		373
Operating lease right-of-use assets	86		109
Other	155		58
Total gross deferred tax liabilities	248		540
Valuation allowances	1,394		1,082
Net deferred income tax asset	$	2,159	$	1,667

Rollforward of unrecognized tax benefits and associated interest and penalties

The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties.

Millions of dollars	Unrecognized Tax Benefits			Interest and Penalties
Balance at January 1, 2018	$	333		$	60
Change in prior year tax positions	32			11
Change in current year tax positions	63			—
Cash settlements with taxing authorities	(7)			(2)
Lapse of statute of limitations	(4)			(2)
Balance at December 31, 2018	$	417		$	67
Change in prior year tax positions	25			11
Change in current year tax positions	29			—
Cash settlements with taxing authorities	(4)			—
Lapse of statute of limitations	(42)			(8)
Balance at December 31, 2019	$	425	(a)	$	70
Change in prior year tax positions	(66)			6
Change in current year tax positions	16			—
Cash settlements with taxing authorities	(3)			—
Lapse of statute of limitations	(17)			(5)
Balance at December 31, 2020	$	355	(a)(b)	$	71

(a)    Includes $18 million as of December 31, 2020 and $25 million as of December 31, 2019 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2020 and December 31, 2019, a net $224 million and $271 million without a net operating loss carryforward offset, respectively, of unrecognized tax benefits would positively impact the effective tax rate and be recognized as additional tax benefits in our statement of operations if resolved in our favor.

(b)    Includes $17 million that could be resolved within the next 12 months.

Summary of Tax Credit Carryforwards

Our deferred tax assets from net operating losses, foreign tax credits, and research and development credits will expire as follows:

Millions of dollars	U.S. Net Operating Loss		Foreign Net Operating Loss		Foreign Tax Credits		Research and Development Credit		Total
2021-2025	$	2	$	186	$	533	$	—	$	721
2026-2030	7		125		557		—		689
2031-2041	665		92		—		196		953
Non-Expiring	312		435		—		—		747
	$	986	$	838	$	1,090	$	196	$	3,110