Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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	2021		2020		2019
Current income taxes:
Federal	$	6	$	1	$	32
Foreign	(270)		(167)		(426)
State	(6)		—		(9)
Total current	(270)		(166)		(403)
Deferred income taxes:
Federal	533		372		383
Foreign	(47)		2		(36)
State	—		70		49
Total deferred	486		444		396
Income tax (provision) benefit	$	216	$	278	$	(7)

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	2021		2020		2019
United States	$	283	$	(3,031)	$	(1,517)
Foreign	969		(189)		395
Total	$	1,252	$	(3,220)	$	(1,122)

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
	2021		2020		2019
United States statutory rate	21.0	%	21.0	%	21.0	%
Valuation allowance against tax assets	(44.5)		0.9		(10.7)
Impact of foreign income taxed at different rates	2.5		(1.1)		0.8
Adjustments of prior year taxes	1.3		0.7		13.0
State income taxes	0.1		—		(1.3)
Impact of impairments and other charges	—		(12.3)		(20.9)




Other items, net	2.4		(0.6)		(2.5)
Total effective tax rate on continuing operations	(17.2)	%	8.6	%	(0.6)	%

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	2021		2020
Gross deferred tax assets:
Foreign tax credit carryforwards	$	1,041	$	945
Intangible assets	924		—
Net operating loss carryforwards	736		1,691
Accrued liabilities	292		263
Research and development tax credit carryforwards	203		196
Employee compensation and benefits	166		237
Other	457		469
Total gross deferred tax assets	3,819		3,801
Gross deferred tax liabilities:
Operating lease right-of-use assets	160		86
Depreciation and amortization	131		7

Other	9		155
Total gross deferred tax liabilities	300		248
Valuation allowances	885		1,394
Net deferred income tax asset	$	2,634	$	2,159

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, 2019		$	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		$	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)	$	71
Change in prior year tax positions		14			4
Change in current year tax positions		14			2
Cash settlements with taxing authorities		(10)			—
Lapse of statute of limitations		(21)			(5)
Balance at December 31, 2021		$	352	(a)(b)	$	72

(a)	Includes $20 million as of December 31, 2021 and $18 million as of December 31, 2020 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2021 and December 31, 2020, a net $272 million and $224 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 $69 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
2022-2026	$	2	$	133	$	668	$	—	$	803
2027-2031	8		73		510		—		591
2032-2041	52		108		—		203		363
Non-Expiring	9		410		—		—		419
	$	71	$	724	$	1,178	$	203	$	2,176