For the years ended December 31, income (loss) from continuing operations before income taxes consisted of the following:



	2016			2015			2014
	(In millions)
U.S.	$	(1,181	)	$	(4,865	)	$	1,022
International	(27		)	(82		)	10
Total income (loss) before income taxes	$	(1,208	)	$	(4,947	)	$	1,032

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



	2016			2015			2014
	(In millions)
Current taxes:
U.S. federal	$	(13	)	$	(12	)	$	—
U.S. state	—			(2		)	2
International	22			31			3
Deferred taxes:
U.S. federal	10			(1,507		)	350
U.S. state	13			(27		)	25
International	(10		)	(68		)	2
Total provision (benefit) for income taxes	$	22		$	(1,585	)	$	382

The following table presents a reconciliation of the United States statutory income tax rate to our effective income tax rate.



	2016		2015		2014
U.S. statutory income tax rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal effect	—		0.9		1.7
Valuation allowance, domestic	(35.5	)	(4.0	)	—
Valuation allowance, international	(2.4	)	(0.3	)	—
Foreign tax on foreign earnings	0.6		0.4		0.2
Other	0.5		—		0.1
Effective income tax rate	(1.8	)%	32.0	%	37.0	%

The provision for state deferred income taxes on the consolidated statement of operations for the year ended December 31, 2016 was attributable to Oklahoma state deferred tax expense. Other state taxing jurisdictions were in a net deferred tax asset position for which a corresponding valuation allowance was recorded resulting in zero deferred tax benefit for those jurisdictions. The amount for state income taxes in the rate reconciliation table above is the net of deferred tax expenses and benefits before valuation allowances, if any, generated from all states.

Our effective tax rate for 2016 differs from the U.S. statutory rate primarily due to domestic and international deferred tax asset valuation allowances discussed below.

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



	2016			2015
	(In millions)
Deferred tax asset:
Net operating loss carryforwards	$	301		$	243
Alternative minimum tax credit	73			87
Stock-based compensation	15			23
Oil and gas properties	306			13
Commodity derivatives	9			—
Foreign tax credit	593			572
Other	13			17
Total deferred tax asset	1,310			955
Deferred tax asset valuation allowances	(1,310		)	(790		)
Net deferred tax asset	—			165
Deferred tax liability:
Commodity derivatives	—			(119		)
Oil and gas properties	(39		)	(72		)
Total deferred tax liability	(39		)	(191		)
Net deferred tax liability	$	(39	)	$	(26	)

As of December 31, 2016 and 2015, we had gross net operating loss (NOL) carryforwards of approximately $849 million and $852 million for federal income tax, respectively and $1.8 billion for state income tax purposes, which may be used in future years to offset taxable income. NOL carryforwards of $138 million are subject to annual limitations due to stock ownership changes. We currently estimate that we will not be able to utilize $173 million of our various gross state NOLs because we do not have sufficient estimated future taxable income in the appropriate jurisdictions. To the extent not utilized, the federal NOL carryforwards will begin to expire during the years 2019 through 2036.

As of December 31, 2016 and 2015, we had foreign tax credits of approximately $593 million and $572 million, respectively, which will expire during the years 2022 through 2026.

Utilization of deferred tax assets is dependent upon generating sufficient future taxable income in the appropriate jurisdictions within the carryforward period. Estimates of future taxable income can be significantly affected by changes in oil, gas and NGL prices; estimates of the timing and amount of future production; and estimates of future operating and capital costs. Therefore, no certainty exists that we will be able to fully utilize our existing deferred tax assets.

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



	2016			2015			2014
	(In millions)
Balance at the beginning of the year	$	(790	)	$	(549	)	$	(584	)
Charged to provision for income taxes:
U.S. state net operating loss carryforwards	(4		)	(1		)	1
U.S. federal and state valuation allowance	(466		)	(202		)	—
Malaysia valuation allowance	—			—			40
Foreign tax credit valuation allowance	(21		)	(25		)	(12		)
Brazil and other international valuation allowance	—			—			6
China valuation allowance	(29		)	(13		)	—
Balance at the end of the year	$	(1,310	)	$	(790	)	$	(549	)

Due to the ceiling test impairments of our oil and gas properties in 2015, we moved from a deferred tax liability position to a deferred tax asset position in most taxing jurisdictions. With the continuation of current commodity price levels, we consider it more likely than not that the related tax benefits will not be realized and therefore, we recorded a full valuation allowance on our domestic deferred tax assets of $466 million and $202 million for the years ended December 31, 2016 and 2015, respectively. The net change in the domestic valuation allowance for 2016 of $466 million includes an increase of $37 million for the early adoption of the simplification of employee share-based payment transactions. We recorded a full valuation allowance on our China deferred tax assets of $29 million and $13 million, for the years ended December 31, 2016 and 2015, respectively.

As the result of the divestiture of the Malaysia operations in 2014, all of the deferred tax asset and related valuation allowance were transferred to the buyer. In the fourth quarter of 2014, we wrote off the other international deferred tax assets and related valuation allowances since we have ceased operating in these jurisdictions and it is remote that the NOL carryforwards will be realized in the future. In fourth quarter of 2016, 2015 and 2014, we recorded valuation allowances related to insufficient estimated future domestic taxable income to fully utilize foreign tax credits before they expire of $21 million, $25 million and $12 million, respectively. The foreign tax credit deferred tax asset is fully offset by a valuation allowance.

As of December 31, 2016, we did not have a liability for uncertain tax positions, and as such, we did not accrue related interest or penalties. The tax years 2013 through 2015 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which we are subject.

Unrealized derivative gains and losses are treated differently for income tax purposes in the various state taxing jurisdictions to which we are subject. As a result, our effective tax rate fluctuates in periods with significant commodity price volatility. These effective tax rate fluctuations are magnified when income before taxes approaches zero.