Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020	2019
Income (loss) from continuing operations before income taxes
United States	$	114,659	(1,407,598)	282,199
Foreign	(71,768)		(141,437)	(78,701)
Total	$	42,891	(1,549,035)	203,498
Income tax expense (benefit)
U.S. Federal – Current	$	—	(10,627)	—
– Deferred	(1,480)		(249,253)	30,598
Total U.S. Federal	(1,480)		(259,880)	30,598
State	3,303		(8,413)	5,139
Foreign – Current	(5,158)		(5,072)	(17,823)
– Deferred	(2,527)		(20,376)	(3,231)
Total Foreign	(7,685)		(25,448)	(21,054)
Total	$	(5,862)	(293,741)	14,683

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)	2021		2020	2019
Income tax expense (benefit) based on the U.S. statutory tax rate	$	9,007	(325,299)	42,735
Alberta tax rate reduction and tax impact of deemed repatriation of foreign invested earnings (U.S. tax reform)	—		—	(17,019)
Foreign income (loss) subject to foreign tax rates different than the U.S. statutory rate	13,270		(3,791)	(1,122)
State income taxes, net of federal benefit	2,500		(6,646)	4,060
U.S. tax benefit on certain foreign upstream investments	(8,916)		—	(14,975)
Increase in deferred tax asset valuation allowance related to other foreign exploration expenditures	4,814		7,707	10,927
Tax effect on income attributable to noncontrolling interest	(25,450)		23,712	(21,750)
Other, net	(1,087)		10,576	11,827
Total	$	(5,862)	(293,741)	14,683

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, 2021 and 2020 showing the tax effects of significant temporary differences follows.


(Thousands of dollars)	2021		2020
Deferred tax assets
Property and leasehold costs	$	241,833	95,141
Liabilities for dismantlements	37,728		28,475
Postretirement and other employee benefits	114,790		128,281

U. S. net operating loss	577,531		589,067
Investment in partnership	39,396		65,216
Other deferred tax assets	135,838		112,685
Total gross deferred tax assets	1,147,116		1,018,865
Less valuation allowance	(111,259)		(106,448)
Net deferred tax assets	1,035,857		912,417
Deferred tax liabilities
Deferred tax on undistributed foreign earnings	(5,000)		(5,000)
Accumulated depreciation, depletion and amortization	(786,846)		(665,255)

Other deferred tax liabilities	(41,387)		(27,250)
Total gross deferred tax liabilities	(833,233)		(697,505)
Net deferred tax (liabilities) assets	$	202,624	214,912

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)	2021		2020	2019
Balance at January 1	$	2,832	2,538	2,903
Additions for tax positions related to current year	71		3,042	456
Settlements due to lapse of time	—		—	(821)
Settlements with taxing authorities	—		(2,748)	—

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