Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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	2022		2021		2020
Current income taxes:
Federal	$	(17)	$	6	$	1
Foreign	(417)		(270)		(167)
State	(11)		(6)		—
Total current	(445)		(270)		(166)
Deferred income taxes:
Federal	(159)		533		372
Foreign	103		(47)		2
State	(14)		—		70
Total deferred	(70)		486		444
Income tax (provision) benefit	$	(515)	$	216	$	278

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	2022		2021		2020
United States	$	992	$	283	$	(3,031)
Foreign	1,118		969		(189)
Total income (loss) from continuing operations before income taxes	$	2,110	$	1,252	$	(3,220)

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
	2022		2021		2020
United States statutory rate	21.0	%	21.0	%	21.0	%
Valuation allowance against tax assets	(2.9)		(44.5)		0.9
Impact of foreign income taxed at different rates	3.0		2.5		(1.1)
State income taxes	0.8		0.1		—
Impact of impairments and other charges	0.7		—		(12.3)
Adjustments of prior year taxes	0.2		1.3		0.7




Other items, net	1.6		2.4		(0.6)
Total effective tax rate on continuing operations	24.4	%	(17.2)	%	8.6	%

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	2022		2021
Gross deferred tax assets:
Foreign tax credit carryforwards	$	961	$	1,041
Intangible assets	856		924
Net operating loss carryforwards	694		736
Accrued liabilities	259		292
Research and development tax credit carryforwards	219		203
Employee compensation and benefits	170		166
Other	515		457
Total gross deferred tax assets	3,674		3,819
Gross deferred tax liabilities:
Operating lease right-of-use assets	153		160
Depreciation and amortization	61		131

Other	39		9
Total gross deferred tax liabilities	253		300
Valuation allowances	821		885
Net deferred income tax asset	$	2,600	$	2,634

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, 2020		$	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		$	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)	$	72
Change in prior year tax positions		(36)			(5)
Change in current year tax positions		13			2
Cash settlements with taxing authorities		(6)			(2)
Lapse of statute of limitations		(12)			(3)
Balance at December 31, 2022		$	311	(a)(b)	$	64

(a)	Includes $51 million as of December 31, 2022 and $20 million as of December 31, 2021 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2022 and December 31, 2021, a net $208 million and $272 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 $27 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
2023-2027	$	2	$	67	$	524	$	—	$	593
2028-2032	8		66		488		—		562
2033-2042	33		93		—		219		345
Non-Expiring	20		441		—		—		461
	$	63	$	667	$	1,012	$	219	$	1,961