Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes Table

Components of income from continuing operations before income taxes are as follows:

	Year Ended December 31,
(millions)	2014		2013		2012
Domestic	$	282	$	202	$	92
Foreign	1,428		1,142		1,264
Total	$	1,710	$	1,344	$	1,356

Components of Income Tax Provision Table

The income tax provision from continuing operations consists of the following:

	Year Ended December 31,
(millions)	2014			2013			2012
Current Taxes
Federal	$	19		$	21		$	14
State	1			1			1
Foreign	208			144			143
Total Current	228			166			158
Deferred Taxes
Federal	237			96			60
State	13			1			1
Foreign	18			174			172
Total Deferred	268			271			233
Total Income Tax Provision	$	496		$	437		$	391
Effective Tax Rate	29.0		%	32.5		%	28.8		%

Tax Rate Reconciliation Table

A reconciliation of the federal statutory tax rate to the effective tax rate is as follows:

	Year Ended December 31,
(percentages)	2014		2013		2012
Federal Statutory Rate	35.0		35.0		35.0
Effect of
Earnings of Equity Method Investees	(3.3	)	(5.3	)	(4.9	)
State Taxes, Net of Federal Benefit	0.8		0.1		0.2
Difference Between US and Foreign Rates	(14.2	)	(6.3	)	(4.9	)
Foreign Exploration Loss	—		2.7		(3.8	)
Change in Valuation Allowance	1.9		3.8		4.3
Oil Profits Tax - Israel	0.2		0.3		0.9
Tax Contingency	0.1		0.4		1.8
Non Permanent Reinvestment on Foreign Earnings	8.2		—		—
Other, Net	0.3		1.8		0.2
Effective Rate	29.0		32.5		28.8

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities resulted from the following:

	December 31,
(millions)	2014			2013
Deferred Tax Assets
Loss Carryforwards	$	170		$	174
Employee Compensation & Benefits	149			143
Foreign Tax Credits	67			31
Other	51			56
Total Deferred Tax Assets	437			404
Valuation Allowance - Foreign Loss Carryforwards	(145		)	(135		)
Valuation Allowance - Foreign Tax Credits	(67		)	(31		)
Valuation Allowance - Capital Loss Carryforwards	(1		)	(2		)
Net Deferred Tax Assets	224			236
Deferred Tax Liabilities
Mark to Market of Commodity Derivative Instruments	(209		)	—
Non-Permanent Reinvestment of Foreign Earnings	(141		)	—
Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments	(2,548		)	(2,615		)
Total Deferred Tax Liability	(2,898		)	(2,615		)
Net Deferred Tax Liability	$	(2,674	)	$	(2,379	)

Deferred Tax Liability Balance Sheet Classifcation

Net deferred tax liabilities were classified in the consolidated balance sheets as follows:

	December 31,
(millions)	2014			2013
Deferred Income Tax Asset - Current	$	—		$	62
Deferred Income Tax Liability - Current	(158		)	—
Deferred Income Tax Liability - Noncurrent	(2,516		)	(2,441		)
Net Deferred Tax Liability	$	(2,674	)	$	(2,379	)

Schedule of Unrecognized Tax Benefits

A reconciliation of our beginning and ending amounts of unrecognized tax benefits follows:

(millions)	Twelve Months Ended December 31, 2014
Unrecognized Tax Benefits, Beginning Balance	$	28
Additions for Tax Positions Related to Current Year	—
Additions for Tax Positions of Prior Years	4
Reductions for Tax Positions of Prior Years	(3		)
Settlements	—
Unrecognized Tax Benefits, Ending Balance	$	29