Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes [Abstract]

Components of Income from Continuing Operations Before Income Taxes and Income Tax Expense

(Thousands of dollars)	2014		2013	2012
Income (loss) from continuing operations before income taxes
United States	$	179,484	(5,810)	54,275
Foreign		1,072,786	1,478,497	1,313,735
Total	$	1,252,270	1,472,687	1,368,010
Income tax expense (benefit)
Federal – Current	$	25,151	(56,790)	(256,931)
– Deferred		25,444	65,883	177,325
		50,595	9,093	(79,606)
State		8,840	7,141	8,104
Foreign – Current		359,502	477,715	472,701
– Deferred		(191,640)	90,601	160,317
		167,862	568,316	633,018
Total	$	227,297	584,550	561,516

Reconciliation of Income Taxes Based on U.S. Statutory Tax Rate to Income Tax Expense

(Thousands of dollars)	2014		2013	2012
Income tax expense based on the U.S. statutory tax rate	$	438,295	515,440	478,804
Foreign income subject to foreign tax rates different than      the U.S. statutory rate		20,562	31,752	7,710
State income taxes, net of federal benefit		5,746	4,642	5,268
U.S. tax benefit on certain foreign upstream investments		(95,838)	(133,526)	(108,077)
Deferred tax benefit on sale of Malaysian assets		(176,661)	–	–
Increase in deferred tax asset valuation allowance related      to other foreign exploration expenditures		37,712	129,588	87,558
Impairment or abandonment of Azurite field with no tax benefit		–	35,475	70,000
Other, net		(2,519)	1,179	20,253
Total	$	227,297	584,550	561,516

Analysis of Deferred Tax Assets and Deferred Tax Liabilities Showing Tax Effects of Significant Temporary Differences

(Thousands of dollars)	2014		2013
Deferred tax assets
Property and leasehold costs	$	379,577	708,947
Liabilities for dismantlements		85,544	79,111
Postretirement and other employee benefits		208,600	175,446
Alternative minimum tax		46,792	49,536
Foreign tax credit carryforwards		44,061	19,896
Other deferred tax assets		22,426	23,352
Total gross deferred tax assets		787,000	1,056,288
Less valuation allowance		(306,463)	(633,735)
Net deferred tax assets		480,537	422,553
Deferred tax liabilities
Property, plant and equipment		(479,677)	(747,561)
Accumulated depreciation, depletion and amortization		(1,123,864)	(1,040,251)
Other deferred tax liabilities		(15,753)	(38,849)
Total gross deferred tax liabilities		(1,619,294)	(1,826,661)
Net deferred tax liabilities	$	(1,138,757)	(1,404,108)

Reconciliation of Beginning and Ending Amount of Consolidated Liability for Unrecognized Income Tax Benefits

(Thousands of dollars)	2014		2013	2012
Balance at January 1	$	6,366	16,611	18,857
Additions for tax positions related to current year		988	2,486	1,258
Settlements due to lapse of time		(1,225)	(12,731)	(3,504)
Foreign currency translation effect		(118)	–	–
Balance at December 31	$	6,011	6,366	16,611