Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Total provision (benefit) for income taxes

For the years ended December 31, the total provision (benefit) for income taxes for continuing operations consisted of the following:



	2013			2012			2011
	(In millions)
Current taxes:
U.S. federal	$	(4	)	$	1		$	17
U.S. state	—			1			—
Deferred taxes:
U.S. federal	53			(479		)	171
U.S. state	13			(34		)	30
Total provision (benefit) for income taxes	$	62		$	(511	)	$	218

Provision for income taxes using federal statutory rate

The provision for income taxes for each of the indicated years was different than the amount computed using the federal statutory rate (35%) for the following reasons:



	2013			2012			2011
	(In millions)
Amount computed using the statutory rate	$	60		$	(495	)	$	217
Increase (decrease) in taxes resulting from:
State and local income taxes, net of federal effect	8			(18		)	10
Valuation allowance, state net of federal	(2		)	—			5
Other	(4		)	2			(14		)
Total provision (benefit) for income taxes	$	62		$	(511	)	$	218

Components of deferred tax asset and deferred tax liability

At December 31, the components of our deferred tax asset (liability) were as follows:



	2013			2012
	(In millions)
Deferred tax asset:
Net operating loss carryforwards	$	335		$	213
Alternative minimum tax credit	99			103
Stock-based compensation	25			24
Marketable securities	3			4
Oil and gas properties	59			49
Foreign tax credit	535			421
Commodity derivatives	13			—
Other	6			18
Total deferred tax asset	1,075			832
Deferred tax asset valuation allowances	(584		)	(457		)
Net deferred tax asset	491			375

Deferred tax liability:
Commodity derivatives	—			(44		)
Oil and gas properties	(1,592		)	(1,283		)
Total deferred tax liability	(1,592		)	(1,327		)
Net deferred tax liability	(1,101		)	(952		)
Less: Net current deferred tax asset (liability)	22			(42		)
Net noncurrent deferred tax liability	$	(1,123	)	$	(910	)

Roll forward of deferred tax asset valuation allowance

The change in our deferred tax asset valuation allowance is as follows at December 31:



	2013			2012			2011
	(In millions)
Balance at the beginning of the year	$	(457	)	$	(11	)	$	(6	)
Charged to provision for income taxes:
Malaysia valuation allowance	(15		)	(25		)	—
Foreign tax credit valuation allowance	(114		)	(421		)	—
U.S. state net operating loss carryforwards	2			—			(5		)
Balance at the end of the year	$	(584	)	$	(457	)	$	(11	)