Income Taxes - (Notes)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

For the three months ended March 31, 2016, total income tax expense was $367 million on a loss before income taxes of $614 million, resulting in a negative effective tax rate of 59.8%, driven primarily by $502 million of valuation allowances.

Due to the significant downturn in the U.S. market during the three months ended March 31, 2016 and uncertainty as to whether the U.S. will generate sufficient future taxable income to utilize the U.S. deferred tax assets, we concluded that valuation allowances were required. The valuation allowances are recorded against various deferred tax assets, including U.S. federal tax credit carryforwards ($164 million), foreign ($110 million) and state ($15 million) net operating losses ("NOL"), and certain U.S. deferred tax assets ($213 million).

In addition, we currently intend to carryback the 2015 NOL and 2016 expected NOL resulting in a $427 million reduction to the beginning of year U.S. deferred tax assets and a $484 million increase in tax receivables, of which $324 million is reflected as a current income tax receivable recorded in other current assets in the consolidated condensed balance sheet.