DOMESTIC AND FOREIGN INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes

The domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes were as follows:



For the years ended December 31, (in millions)	Domestic			Foreign		Total
2018	$	3,431		$	2,177	$	5,608
2017	$	(609	)	$	1,937	$	1,328
2016	$	(2,698	)	$	1,034	$	(1,664	)

Schedule of provisions (credits) for domestic and foreign income taxes on continuing operations

The provisions (credits) for domestic and foreign income taxes on continuing operations consisted of the following:



For the years ended December 31, (in millions)	United States Federal			State and Local			Foreign			Total
2018
Current	$	(23	)	$	52		$	1,077		$	1,106
Deferred	422			12			(63		)	371
	$	399		$	64		$	1,014		$	1,477
2017
Current	$	(81	)	$	11		$	806		$	736
Deferred	(856		)	23			114			(719		)
	$	(937	)	$	34		$	920		$	17
2016
Current	$	(784	)	$	9		$	630		$	(145	)
Deferred	(504		)	(19		)	6			(517		)
	$	(1,288	)	$	(10	)	$	636		$	(662	)

Schedule of reconciliation of the United States federal statutory income tax rate to Occidental's worldwide effective tax rate on income from continuing operations stated as a percentage of pre-tax income

The following reconciliation of the United States federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations is stated as a percentage of pre-tax income:



For the years ended December 31,	2018		2017		2016
United States federal statutory tax rate	21	%	35	%	35	%
Other than temporary loss on available for sale investment in California Resources stock	—		—		(2	)
Enhanced oil recovery credit	(3	)	(9	)	5
Tax benefit due to write off of exploration blocks	—		—		14
Change in federal income tax rate	—		(44	)	—
Tax (benefit) expense due to reversal of indefinite reinvestment assertion	(2	)	7		—
Operations outside the United States	11		12		(14	)
State income taxes, net of federal benefit	1		2		—
Other	(2	)	(2	)	2
Worldwide effective tax rate	26	%	1	%	40	%

Schedule of tax effects of temporary differences resulting in deferred income taxes

The tax effects of temporary differences resulting in deferred income taxes at December 31, 2018, and 2017 were as follows:



	2018					2017
Tax effects of temporary differences (in millions)	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property, plant and equipment differences	$	—		$	2,089	$	—		$	2,272
Equity investments, partnerships and foreign subsidiaries	—			161		—			134
Environmental reserves	195			—		191			—
Postretirement benefit accruals	176			—		145			—
Deferred compensation and benefits	170			—		151			—
Asset retirement obligations	280			—		228			—
Foreign tax credit carryforwards	2,356			—		2,750			—
General business credit carryforwards	429			—		407			—
Net operating loss carryforward	29			—		437			—
Federal benefit of state income taxes	18			—		10			—
All other	93			—		146			—
Subtotal	3,746			2,250		4,465			2,406
Valuation allowance	(2,403		)	—		(2,640		)	—
Total deferred taxes	$	1,343		$	2,250	$	1,825		$	2,406

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



For the years ended December 31, (in millions)	2018			2017		2016
Balance at January 1,	$	22		$	22	$	22
Reductions based on tax positions related to prior years and settlements	(22		)	—		—
Balance at December 31,	$	—		$	22	$	22