Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income Before Income Taxes Table

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



	Year Ended December 31,
(millions)	2015			2014		2013
Domestic	$	(2,338	)	$	282	$	202
Foreign	119			1,428		1,142
Total	$	(2,219	)	$	1,710	$	1,344

Components of Income Tax Provision Table

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



	Year Ended December 31,
(millions)	2015			2014			2013
Current Taxes
Federal	$	(1	)	$	19		$	21
State	—			1			1
Foreign	107			208			144
Total Current	106			228			166
Deferred Taxes
Federal	216			237			96
State	(5		)	13			1
Foreign	(95		)	18			174
Total Deferred	116			268			271
Total Income Tax Provision	$	222		$	496		$	437
Effective Tax Rate	(10.0		)%	29.0		%	32.5		%

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)	2015		2014		2013
Federal Statutory Rate	35.0	%	35.0	%	35.0	%
Effect of
Earnings of Equity Method Investees	0.6		(3.3	)	(5.3	)
State Taxes, Net of Federal Benefit	0.3		0.8		0.1
Difference Between US and Foreign Rates	2.6		(14.2	)	(6.3	)
Foreign Exploration Loss	2.7		—		2.7
Change in Valuation Allowance	—		1.9		3.8
Oil Profits Tax - Israel	0.1		0.2		0.3
Tax Contingency	0.4		0.1		0.4
Accumulated Undistributed Foreign Earnings	(37.7	)	8.2		—
Goodwill Impairment	(12.3	)	—		—
Other, Net	(1.7	)	0.3		1.8
Effective Rate	(10.0	)%	29.0	%	32.5	%

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities resulted from the following:



	December 31,
(millions)	2015			2014
Deferred Tax Assets
Loss Carryforwards	$	468		$	170
Employee Compensation and Benefits	151			149
Foreign Tax Credits	—			67
Other	81			51
Total Deferred Tax Assets	$	700		$	437
Valuation Allowance - Foreign Loss Carryforwards	(206		)	(145		)
Valuation Allowance - Foreign Tax Credits	—			(67		)
Valuation Allowance - Capital Loss Carryforwards	—			(1		)
Net Deferred Tax Assets	$	494		$	224
Deferred Tax Liabilities
Mark to Market of Commodity Derivative Instruments	(128		)	(209		)
Accumulated Undistributed Foreign Earnings	(368		)	(141		)
Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments	(2,824		)	(2,548		)
Total Deferred Tax Liability	$	(3,320	)	$	(2,898	)
Net Deferred Tax Liability	$	(2,826	)	$	(2,674	)

Deferred Tax Liability Balance Sheet Classifcation

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



	December 31,
(millions)	2015			2014
Deferred Income Tax Liability - Current ⁽¹⁾	$	—		$	(158	)
Deferred Income Tax Liability - Noncurrent ⁽¹⁾	(2,826		)	(2,516		)
Net Deferred Tax Liability	$	(2,826	)	$	(2,674	)

⁽¹⁾As discussed in Note 1. Summary of Significant Accounting Policies, we have elected to early adopt and apply the presentation requirements of ASU 2015-17, Balance Sheet Classification of Deferred Taxes, as of December 31, 2015. Prior periods have not been retrospectively adjusted.

Schedule of Unrecognized Tax Benefits

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



(millions)	Twelve Months Ended December 31, 2015
Unrecognized Tax Benefits, Beginning Balance	$	29
Additions for Tax Positions Related to Current Year	—
Additions for Tax Positions of Prior Years	3
Reductions for Tax Positions of Prior Years	(4		)
Settlements	(20		)
Unrecognized Tax Benefits, Ending Balance	$	8