Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following summarizes components of income tax expense (benefit) for the years ended December 31:

millions	2014			2013			2012
Current
Federal	$	188		$	113		$	45
State	2			42			25
Foreign	1,574			873			891
	1,764			1,028			961
Deferred
Federal	(389		)	94			(30		)
State	27			(9		)	115
Foreign	215			52			74
	(147		)	137			159
Total income tax expense (benefit)	$	1,617		$	1,165		$	1,120

Schedule of Effective Income Tax Rate Reconciliation

The following summarizes the sources of these differences for the years ended December 31:

millions except percentages	2014			2013			2012
Income (loss) before income taxes
Domestic	$	(3,564	)	$	428		$	132
Foreign	3,618			1,678			3,433
Total	$	54		$	2,106		$	3,565
U.S. federal statutory tax rate	35		%	35		%	35		%
Tax computed at the U.S. federal statutory rate	$	19		$	737		$	1,248
Adjustments resulting from
State income taxes (net of federal income tax benefit)	(11		)	23			93
Tax impact from foreign operations	62			204			215
Non-deductible Algerian exceptional profits tax	193			144			188
Non-taxable Algeria exceptional profits tax settlement	—			13			(679		)
Net changes in uncertain tax positions	1,427			(29		)	28
Deferred tax adjustments	15			76			22
Non-deductible Tronox-related contingent loss	(36		)	36			—
Income attributable to noncontrolling interests	(66		)	(48		)	(24		)
Non-deductible Deepwater Horizon settlement	32			—			—
Federal manufacturing deduction	(27		)	—			—
Non-deductible goodwill	21			—			15
Other—net	(12		)	9			14
Total income tax expense (benefit)	$	1,617		$	1,165		$	1,120
Effective tax rate	2,994		%	55		%	31		%

Deferred Tax Assets (Liabilities) Table

The following summarizes components of total deferred taxes at December 31:

millions	2014			2013
Federal	$	(7,649	)	$	(8,246	)
State, net of federal	(341		)	(332		)
Foreign	(537		)	(307		)
Total deferred taxes	$	(8,527	)	$	(8,885	)

The following summarizes tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at December 31:

millions	2014			2013
Current deferred tax assets	$	210		$	412
Settlement agreement related to the Tronox Adversary Proceeding	590			—
Valuation allowances on deferred tax assets not expected to be realized	(78		)	(52		)
Net current deferred tax assets	722			360
Oil and gas exploration and development operations	(8,418		)	(8,213		)
Mineral operations	(412		)	(410		)
Midstream and other depreciable properties	(1,611		)	(1,586		)
Other	(351		)	(499		)
Gross long-term deferred tax liabilities	(10,792		)	(10,708		)
Oil and gas exploration and development costs	177			94
Net operating loss carryforward	558			599
Foreign tax credit carryforward and alternative minimum tax credit carryforward	166			325
Other	1,428			1,211
Gross long-term deferred tax assets	2,329			2,229
Valuation allowances on deferred tax assets not expected to be realized	(786		)	(766		)
Net long-term deferred tax assets	1,543			1,463
Net long-term deferred tax liabilities	(9,249		)	(9,245		)
Total deferred taxes	$	(8,527	)	$	(8,885	)

Valuation Allowances on Deferred Tax Assets Rollforwad

The following summarizes changes in the balance of valuation allowances on deferred tax assets:

millions	2014			2013			2012
Balance at January 1	$	(818	)	$	(922	)	$	(555	)
Additions	(59		)	(38		)	(426		)
Reductions	13			142			59
Balance at December 31	$	(864	)	$	(818	)	$	(922	)

Taxes Receivable (Payable) Table

The following summarizes taxes receivable (payable) related to income tax expense (benefit) at December 31:

Balance Sheet Classification	2014			2013
Income taxes receivable
Accounts receivable—other	$	93		$	66
Other assets	35			35
	128			101
Income taxes (payable)
Accrued expense	(152		)	(82		)
Total net income taxes receivable (payable)	$	(24	)	$	19

Schedule of Operating Loss, Tax Credit, And Other Carryforwards

Tax carryforwards available for use on future income tax returns at December 31, 2014, were as follows:

millions	Domestic		Foreign		Expiration
Net operating loss—foreign	$	—	$	1,165	2015 - Indefinite
Net operating loss—state	$	4,477	$	—	2015-2034
Foreign tax credits	$	167	$	—	2022-2023
Texas margins tax credit	$	34	$	—	2026

Unrecognized Tax Benefits Rollforward

Changes in the balance of unrecognized tax benefits excluding interest and penalties on uncertain tax positions were as follows:

	Assets (Liabilities)
millions	2014			2013			2012
Balance at January 1	$	(147	)	$	(46	)	$	(31	)
Increases related to prior-year tax positions	(11		)	(54		)	(17		)
Decreases related to prior-year tax positions	39			3			3
Increases related to current-year tax positions	(1,568		)	(72		)	(1		)
Settlements	—			5			—
Lapse of statute of limitations	—			17			—
Balance at December 31	$	(1,687	)	$	(147	)	$	(46	)

Tax Years Subject to Examination by Major Tax Jurisdiction Table

The following lists the tax years subject to examination by major tax jurisdiction:

	Tax Years
United States	2008-2014
Algeria	2011-2014
Ghana	2006-2014