v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Taxes [Abstract]  
Income taxes charged to income (loss)
Components of income tax provision
 
(benefit) were:
Millions of Dollars
2021
2020
2019
Income Taxes
Federal
Current
$
32
3
18
Deferred
1,161
(625)
(113)
Foreign
Current
3,128
350
2,545
Deferred
66
(70)
(323)
State and local
Current
127
(4)
148
Deferred
119
(139)
(8)
Total
 
tax provision (benefit)
$
4,633
(485)
2,267
Components of deferred tax liabilities and assets
Deferred income taxes
 
reflect the net tax effect
 
of temporary differences
 
between the carrying amounts of
assets and liabilities for financial reporting purposes
 
and the amounts used for tax purposes.
 
Major components
of deferred tax liabilities and
 
assets at December 31 were:
Millions of Dollars
2021
2020
Deferred Tax
 
Liabilities
PP&E and intangibles
$
10,170
7,744
Inventory
44
64
Other
213
242
Total
 
deferred tax liabilities
10,427
8,050
Deferred Tax
 
Assets
Benefit plan accruals
321
540
Asset retirement obligations
 
and accrued environmental costs
2,297
2,262
Investments in joint ventures
1,684
1,653
Other financial accruals and deferrals
827
907
Loss and credit carryforwards
7,402
8,904
Other
399
365
Total
 
deferred tax assets
12,930
14,631
Less: valuation allowance
(8,342)
(9,965)
Total
 
deferred tax assets
 
net of valuation allowance
4,588
4,666
Net deferred tax liabilities
$
5,839
3,384
Reconciliation of deferred tax asset valuation allowance
The following table shows a reconciliation
 
of the beginning and ending deferred tax
 
asset valuation allowance for
for 2021, 2020 and 2019:
Millions of Dollars
2021
2020
2019
Balance at January 1
$
9,965
10,214
3,040
Charged to expense (benefit)
(45)
460
(225)
Other*
(1,578)
(709)
7,399
Balance at December 31
$
8,342
9,965
10,214
*Represents changes due to originating deferred tax asset that have no impact to our effective tax rate, acquisitions/dispositions/revisions and
the effect of translating foreign financial statements.
Reconciliation of the beginning and ending unrecognized tax benefits
The following table shows a reconciliation
 
of the beginning and ending unrecognized
 
tax benefits for 2021,
 
2020 and 2019:
Millions of Dollars
2021
2020
2019
Balance at January 1
$
1,206
1,177
1,081
Additions based on tax positions related
 
to the current year
15
6
9
Additions for tax positions of prior years
177
67
120
Reductions for tax positions
 
of prior years
(5)
(34)
(22)
Settlements
-
(9)
(9)
Lapse of statute
(48)
(1)
(2)
Balance at December 31
$
1,345
1,206
1,177
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The amounts of U.S. and foreign income
 
(loss) before income taxes,
 
with a reconciliation of tax at
 
the federal
statutory rate
 
to the provision for income taxes,
 
were:
Millions of Dollars
Percent of Pre-Tax
 
Income (Loss)
2021
2020
2019
2021
2020
2019
Income (loss) before income taxes
United States
$
8,024
(3,587)
4,704
63.1
%
114.2
49.4
Foreign
4,688
447
4,820
36.9
(14.2)
50.6
$
12,712
(3,140)
9,524
100.0
%
100.0
100.0
Federal statutory
 
income tax
$
2,670
(659)
2,000
21.0
%
21.0
21.0
Non-U.S. effective tax
 
rates
1,915
194
1,399
15.1
(6.2)
14.7
Tax impact of debt
 
restructuring
75
-
-
0.6
-
-
Australia disposition
-
(349)
-
-
11.1
-
U.K. disposition
-
-
(732)
-
-
(7.7)
Recovery of outside basis
(55)
(22)
(77)
(0.4)
0.7
(0.8)
Adjustment to tax reserves
(11)
18
9
(0.1)
(0.6)
0.1
Adjustment to valuation allowance
(45)
460
(225)
(0.4)
(14.6)
(2.4)
State income tax
194
(112)
123
1.5
3.6
1.3
Malaysia Deepwater Incentive
-
-
(164)
-
-
(1.7)
Enhanced oil recovery credit
(99)
(6)
(27)
(0.8)
0.2
(0.3)
Other
(11)
(9)
(39)
(0.1)
0.3
(0.4)
Tota
 
l
$
4,633
(485)
2,267
36.4
%
15.5
23.8