Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Income Tax Disclosure [Abstract] |
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| Components of the (provision)/benefit for income taxes on continuing operations |
The components of the benefit (provision) for income taxes on continuing operations were: | | | | | | | | | | | | Year Ended December 31 | Millions of dollars | 2018 | 2017 | 2016 | Current income taxes: | | | | Federal | $ | 19 |
| $ | 40 |
| $ | 737 |
| Foreign | (428 | ) | (423 | ) | (415 | ) | State | (15 | ) | (14 | ) | 35 |
| Total current | (424 | ) | (397 | ) | 357 |
| Deferred income taxes: | | | | Federal | 286 |
| (678 | ) | 1,343 |
| Foreign | 9 |
| (31 | ) | 77 |
| State | (28 | ) | (25 | ) | 81 |
| Total deferred | 267 |
| (734 | ) | 1,501 |
| Income tax benefit (provision) | $ | (157 | ) | $ | (1,131 | ) | $ | 1,858 |
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| United States and foreign components of income from continuing operations before income taxes |
The United States and foreign components of income (loss) from continuing operations before income taxes were as follows: | | | | | | | | | | | | Year Ended December 31 | Millions of dollars | 2018 | 2017 | 2016 | United States | $ | 1,097 |
| $ | 694 |
| $ | (6,636 | ) | Foreign | 717 |
| (12 | ) | (989 | ) | Total | $ | 1,814 |
| $ | 682 |
| $ | (7,625 | ) |
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| Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the US statutory rate to income from continuing operations before income taxes |
Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income (loss) from continuing operations before income taxes were as follows: | | | | | | | | | Year Ended December 31 | | 2018 | 2017 | 2016 | United States statutory rate | 21.0 | % | 35.0 | % | 35.0 | % | Valuation allowance against tax assets | (16.2 | ) | (6.2 | ) | (2.1 | ) | Venezuela adjustment | 5.7 |
| 36.6 |
| — |
| Impact of foreign income taxed at different rates | (3.0 | ) | (18.3 | ) | (3.2 | ) | Impact of U.S. tax reform | (2.6 | ) | 113.0 |
| — |
| Adjustments of prior year taxes | 2.0 |
| (2.3 | ) | 0.2 |
| State income taxes | 1.9 |
| 1.7 |
| 1.0 |
| Undistributed foreign earnings | — |
| 3.8 |
| (5.1 | ) | Domestic manufacturing deduction | — |
| — |
| (1.3 | ) | Non-deductible acquisition costs | — |
| — |
| 0.6 |
| Other items, net | (0.1 | ) | 2.5 |
| (0.7 | ) | Total effective tax rate on continuing operations | 8.7 | % | 165.8 | % | 24.4 | % |
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| Primary components of deferred tax assets and liabilities |
The primary components of our deferred tax assets and liabilities were as follows: | | | | | | | | | December 31 | Millions of dollars | 2018 | 2017 | Gross deferred tax assets: | | | Net operating loss carryforwards | $ | 1,466 |
| $ | 1,370 |
| Foreign tax credit carryforwards | 728 |
| 828 |
| Employee compensation and benefits | 242 |
| 263 |
| Accrued liabilities | 101 |
| 97 |
| Other | 404 |
| 416 |
| Total gross deferred tax assets | 2,941 |
| 2,974 |
| Gross deferred tax liabilities: | | | Depreciation and amortization | 635 |
| 315 |
| Undistributed foreign earnings | 2 |
| 242 |
| Other | 64 |
| 56 |
| Total gross deferred tax liabilities | 701 |
| 613 |
| Valuation allowances | 913 |
| 1,173 |
| Net deferred income tax asset | $ | 1,327 |
| $ | 1,188 |
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| Rollforward of unrecognized tax benefits and associated interest and penalties |
The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties. | | | | | | | | | Millions of dollars | Unrecognized Tax Benefits | | Interest
and Penalties | Balance at January 1, 2016 | $ | 322 |
| | $ | 47 |
| Change in prior year tax positions | 44 |
| | 20 |
| Change in current year tax positions | 129 |
| | 3 |
| Cash settlements with taxing authorities | (62 | ) | | (8 | ) | Lapse of statute of limitations | (6 | ) | | (1 | ) | Balance at December 31, 2016 | $ | 427 |
| | $ | 61 |
| Change in prior year tax positions | (108 | ) | | — |
| Change in current year tax positions | 24 |
| | 2 |
| Cash settlements with taxing authorities | (6 | ) | | — |
| Lapse of statute of limitations | (4 | ) | | (3 | ) | Balance at December 31, 2017 | $ | 333 |
| (a) | $ | 60 |
| Change in prior year tax positions | 32 |
| | 11 |
| Change in current year tax positions | 63 |
| | — |
| Cash settlements with taxing authorities | (7 | ) | | (2 | ) | Lapse of statute of limitations | (4 | ) | | (2 | ) | Balance at December 31, 2018 | $ | 417 |
| (a)(b) | $ | 67 |
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| | (a) | Includes $18 million as of December 31, 2018 and $9 million as of December 31, 2017 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2018 and December 31, 2017, approximately $399 million and $319 million, respectively, of unrecognized tax benefits would positively impact the effective tax rate and be recognized as additional tax benefits in our statement of operations if resolved in our favor. |
(b) Includes $21 million that could be resolved within the next 12 months.
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