INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

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

The following summarizes domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes for the years ended December 31:


millions	2021		2020		2019
Domestic	$	1,966	$	(15,322)	$	(1,632)
Foreign	1,739		(383)		1,986
Total	$	3,705	$	(15,705)	$	354

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

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


millions	2021		2020		2019
Current
Federal	$	173	$	(126)	$	33
State and Local	36		6		46
Foreign	660		465		1,809
Total current tax expense	$	869	$	345	$	1,888
Deferred
Federal	191		(2,384)		(130)
State and Local	(153)		(103)		17
Foreign	8		(30)		(914)
Total deferred tax expense (benefit)	$	46	$	(2,517)	$	(1,027)
Total income tax expense (benefit)	$	915	$	(2,172)	$	861

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 U.S federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations for the years ended December 31 is stated as a percentage of income (loss) from continuing operations before income taxes:


	2021		2020		2019
U.S. federal statutory tax rate	21	%	21	%	21	%
Enhanced oil recovery credit and other general business credits	(3)		—		(2)
Goodwill impairment	—		(3)		—
Capital loss	(2)		—		—
Tax impact from foreign operations	8		(4)		135
State income taxes, net of federal benefit	(2)		—		14
Uncertain tax positions	—		—		7
Transaction costs	—		—		10
Non-controlling interest	—		—		(8)
Executive compensation limitation	1		—		12
Stock warrants	—		—		(5)
WES loss of control	—		—		58
Other	2		—		1
Worldwide effective tax rate	25	%	14	%	243	%

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

The tax effects of temporary differences resulting in deferred income taxes as of December 31:


millions	2021		2020
Deferred tax liabilities
Property, plant and equipment differences	$	(9,905)	$	(10,744)
Equity investments, partnerships and international subsidiaries	(571)		(658)
Gross long-term deferred tax liabilities	(10,476)		(11,402)

Deferred tax assets
Environmental reserves	242		257
Postretirement benefit accruals	285		398
Deferred compensation and benefits	286		186
Asset retirement obligations	850		942
Foreign tax credit carryforwards	3,904		4,465
General business credit carryforwards	698		607
Net operating loss carryforward	1,628		1,797
Interest expense carryforward	28		668
All other	689		720
Gross long-term deferred tax assets	8,610		10,040
Valuation allowance	(5,136)		(5,695)
Net long-term deferred tax assets	$	3,474	$	4,345
Total deferred income tax liability, net	$	(7,002)	$	(7,057)
Less: foreign deferred tax asset in long-term receivables and other assets, net	(37)		(56)
Total deferred income tax liability, gross	$	(7,039)	$	(7,113)

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:


millions	2021		2020		2019
Balance as of January 1	$	2,045	$	2,173	$	—
Increase related to Anadarko Acquisition	—		—		2,143
Increases related to prior-year positions	75		14		30
Settlements	(80)		(42)		—
Reductions for tax positions of prior years	(14)		(100)		—
Balance as of December 31	$	2,026	$	2,045	$	2,173