Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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

The income tax provision (benefit) consists of the following:



	Year Ended December 31,
(millions, except percentages)	2018			2017			2016
Current Taxes
Federal	$	22		$	(11	)	$	(4	)
State	2			1			5
Foreign	172			96			196
Total Current	$	196		$	86		$	197
Deferred Taxes
Federal	$	(123	)	$	(1,258	)	$	(784	)
State	(7		)	(8		)	(24		)
Foreign	60			39			(176		)
Total Deferred	$	(70	)	$	(1,227	)	$	(984	)
Total Income Tax Provision (Benefit) Attributable to Noble Energy	$	126		$	(1,141	)	$	(787	)
Effective Tax Rate	90.0		%	52.1		%	44.4		%

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



	Year Ended December 31,
(percentages)	2018		2017		2016
Federal Statutory Rate ⁽¹⁾	21.0	%	35.0	%	35.0	%
Effect of
Goodwill Impairment	192.5		—		—
Change in Valuation Allowance ⁽¹⁾	(170.2	)	(17.4	)	(2.0	)
US and Foreign Statutory Rate Change ⁽¹⁾	80.7		23.5		1.6
Accumulated Undistributed Foreign Earnings ⁽¹⁾	—		11.0		7.2
Transition Tax ⁽¹⁾	—		(4.8	)	—
Difference Between US and Foreign Rates	17.9		1.8		(0.1	)
Earnings of Equity Method Investees	(20.1	)	1.9		1.0
Noncontrolling Interests	(12.1	)	1.1		0.4
State Taxes, Net of Federal Benefit	0.9		0.3		1.3
Foreign Exploration Loss	(35.6	)	—		—
Global Intangible Low-Taxed Income (GILTI)⁽¹⁾	24.2		—		—
Return to Provision	(17.1	)	(0.1	)	(0.2	)
Audit Settlement	5.1		0.1		(0.2	)
Oil Profits Tax - Israel	3.3		(0.1	)	—
Other, Net	(0.5	)	(0.2	)	0.4
Effective Rate	90.0	%	52.1	%	44.4	%

⁽¹⁾See Tax Reform Legislation and Accumulated Undistributed Earnings of Foreign Subsidiaries, below.

eferred tax assets and liabilities resulted from the following:



	December 31,
(millions)	2018			2017
Deferred Tax Assets
Loss Carryforwards	$	589		$	902
Employee Compensation and Benefits	92			97
Mark to Market of Commodity Derivative Instruments	(27		)	7
Foreign Tax Credits	138			366
Other	157			104
Total Deferred Tax Assets	$	949		$	1,476
Valuation Allowance - Foreign Loss Carryforwards and Foreign Tax Credits	(320		)	(549		)
Net Deferred Tax Assets	$	629		$	927
Deferred Tax Liabilities
Property, Plant and Equipment, Principally Due to Differences in Depreciation, Amortization, Lease Impairment and Abandonments	(1,669		)	(2,029		)
Total Deferred Tax Liability	$	(1,669	)	$	(2,029	)
Net Deferred Tax Liability	$	(1,040	)	$	(1,102	)

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



	December 31,
(millions)	2018			2017
Deferred Income Tax Asset - Noncurrent	$	21		$	25
Deferred Income Tax Liability - Noncurrent	(1,061		)	(1,127		)
Net Deferred Tax Liability	$	(1,040	)	$	(1,102	)