INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

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	2022		2021		2020
Domestic	$	11,314	$	1,966	$	(15,322)
Foreign	2,803		1,739		(383)
Total	$	14,117	$	3,705	$	(15,705)

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	2022		2021		2020
Current
Federal	$	1,272	$	173	$	(126)
State and local	105		36		6
Foreign	1,080		660		465
Total current tax expense	$	2,457	$	869	$	345
Deferred
Federal	(1,569)		191		(2,384)
State and local	(57)		(153)		(103)
Foreign	(18)		8		(30)
Total deferred tax expense (benefit)	$	(1,644)	$	46	$	(2,517)
Total income tax expense (benefit)	$	813	$	915	$	(2,172)

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:


	2022		2021		2020
U.S. federal statutory tax rate	21	%	21	%	21	%
Legal entity reorganization	(18)		—		—
Enhanced oil recovery credit and other general business credits	—		(3)		—
Goodwill impairment	—		—		(3)
Capital loss	—		(2)		—
Tax impact from foreign operations	3		8		(4)
State income taxes, net of federal benefit	—		(2)		—




Other	—		3		—
Worldwide effective tax rate	6	%	25	%	14	%

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	2022		2021
Deferred tax liabilities
Property, plant and equipment differences	$	(7,218)	$	(9,905)
Equity investments, partnerships and international subsidiaries	(441)		(571)
Gross long-term deferred tax liabilities	(7,659)		(10,476)

Deferred tax assets
Environmental reserves	229		242
Postretirement benefit accruals	235		285
Deferred compensation and benefits	207		286
Asset retirement obligations	799		850
Foreign tax credit carryforwards	3,622		3,904
General business credit carryforwards	30		698
Net operating loss carryforward	1,058		1,628
Interest expense carryforward	11		28
All other	771		689
Gross long-term deferred tax assets	6,962		8,610
Valuation allowance	(4,785)		(5,136)
Net long-term deferred tax assets	$	2,177	$	3,474
Total deferred income tax liability, net	$	(5,482)	$	(7,002)
Less: foreign deferred tax asset in long-term receivables and other assets, net	(30)		(37)
Total deferred income tax liability, gross	$	(5,512)	$	(7,039)

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	2022		2021		2020
Balance as of January 1	$	2,026	$	2,045	$	2,173

Increases related to prior-year positions	2		75		14
Settlements	—		(80)		(42)
Reductions for tax positions of prior years	(18)		(14)		(100)
Balance as of December 31	$	2,010	$	2,026	$	2,045