Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

The components of income (loss) from continuing operations before income taxes for each of the three years presented and income tax expense (benefit) attributable thereto were as follows.


(Thousands of dollars)	2020		2019	2018
Income (loss) from continuing operations before income taxes
United States	$	(1,407,598)	282,199	14,907
Foreign	(141,437)		(78,701)	28,095
Total	$	(1,549,035)	203,498	43,002
Income tax expense (benefit)
U.S. Federal – Current	$	(10,627)	—	(9,765)
– Deferred	(249,253)		30,598	(131,200)
Total U.S. Federal	(259,880)		30,598	(140,965)
State	(8,413)		5,139	3,299
Foreign – Current	(5,072)		(17,823)	61,257
– Deferred	(20,376)		(3,231)	(49,727)
Total Foreign	(25,448)		(21,054)	11,530
Total	$	(293,741)	14,683	(126,136)

Effective Income Tax Rates

The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense.


(Thousands of dollars)	2020		2019	2018
Income tax expense (benefit) based on the U.S. statutory tax rate	$	(325,299)	42,735	9,031

Alberta tax rate reduction and tax impact of deemed repatriation of foreign invested earnings (U.S. tax reform)	—		(17,019)	(135,700)

Foreign income (loss) subject to foreign tax rates different than the U.S.statutory rate	(3,791)		(1,122)	5,822
State income taxes, net of federal benefit	(6,646)		4,060	2,607
U.S. tax benefit on certain foreign upstream investments	—		(14,975)	(14,702)
Increase in deferred tax asset valuation allowance related to other foreign exploration expenditures	7,707		10,927	3,283
Tax effect on income attributable to noncontrolling interest	23,712		(21,750)	(1,753)
Other, net	10,576		11,827	5,276
Total	$	(293,741)	14,683	(126,136)

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

An analysis of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 showing the tax effects of significant temporary differences follows.


(Thousands of dollars)	2020		2019
Deferred tax assets
Property and leasehold costs	$	95,141	233,351
Liabilities for dismantlements	28,475		78,361
Postretirement and other employee benefits	128,281		125,250
Alternative minimum tax	—		9,765
U. S. net operating loss	589,067		495,252
Investment in partnership	65,216		—
Other deferred tax assets	112,685		66,795
Total gross deferred tax assets	1,018,865		1,008,774
Less valuation allowance	(106,448)		(103,113)
Net deferred tax assets	912,417		905,661
Deferred tax liabilities
Deferred tax on undistributed foreign earnings	(5,000)		(5,000)
Accumulated depreciation, depletion and amortization	(665,255)		(938,614)
Investment in partnership	—		(14,250)
Other deferred tax liabilities	(27,250)		(25,708)
Total gross deferred tax liabilities	(697,505)		(983,572)
Net deferred tax (liabilities) assets	$	214,912	(77,911)

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

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the three years presented is shown in the following table.


(Thousands of dollars)	2020		2019	2018
Balance at January 1	$	2,538	2,903	3,437
Additions for tax positions related to current year	3,042		456	454
Settlements due to lapse of time	—		(821)	(988)
Settlements with taxing authorities	(2,748)		—	—

Balance at December 31	$	2,832	2,538	2,903