Taxes (Tables)

12 Months Ended

Dec. 31, 2017



Income Taxes	Year ended December 31
	2017			2016			2015
Income tax expense (benefit)
U.S. federal
Current	$	(382	)	$	(623	)	$	(817	)
Deferred	(2,561		)	(1,558		)	(580		)
State and local
Current	(97		)	(15		)	(187		)
Deferred	66			(121		)	(109		)
Total United States	(2,974		)	(2,317		)	(1,693		)
International
Current	3,634			2,744			2,997
Deferred	(708		)	(2,156		)	(1,172		)
Total International	2,926			588			1,825
Total income tax expense (benefit)	$	(48	)	$	(1,729	)	$	132

Reconciliation between the U.S. statutory federal income tax rate and the company's effective income tax rate

The reconciliation between the U.S. statutory federal income tax rate and the company’s effective income tax rate is detailed in the following table:



	2017			2016			2015
Income (loss) before income taxes
United States	$	(441	)	$	(4,317	)	$	(2,877	)
International	9,662			2,157			7,719
Total income (loss) before income taxes	9,221			(2,160		)	4,842
Theoretical tax (at U.S. statutory rate of 35%)	3,227			(756		)	1,695
Effect of U.S. tax reform	(2,020		)	—			—
Equity affiliate accounting effect	(1,373		)	(704		)	(1,286		)
Effect of income taxes from international operations^*	(130		)	608			72
State and local taxes on income, net of U.S. federal income tax benefit	39			(44		)	(74		)
Prior year tax adjustments, claims and settlements	(39		)	(349		)	84
Tax credits	(199		)	(188		)	(35		)
Other U.S.^*	447			(296		)	(324		)
Total income tax expense (benefit)	$	(48	)	$	(1,729	)	$	132

Effective income tax rate	(0.5		)%	80.0		%	2.7		%

^*Includes one-time tax costs (benefits) associated with changes in uncertain tax positions and valuation allowances.

Composition of deferred tax balances

The reported deferred tax balances are composed of the following:



				At December 31
	2017			2016
Deferred tax liabilities
Properties, plant and equipment	$	19,869		$	25,180
Investments and other	4,796			5,222
Total deferred tax liabilities	24,665			30,402
Deferred tax assets
Foreign tax credits	(11,872		)	(10,976		)
Asset retirement obligations/environmental reserves	(5,511		)	(6,251		)
Employee benefits	(3,129		)	(4,392		)
Deferred credits	(1,769		)	(1,950		)
Tax loss carryforwards	(5,463		)	(6,030		)
Other accrued liabilities	(842		)	(510		)
Inventory	(336		)	(374		)
Miscellaneous	(2,415		)	(3,121		)
Total deferred tax assets	(31,337		)	(33,604		)
Deferred tax assets valuation allowance	16,574			16,069
Total deferred taxes, net	$	9,902		$	12,867

Classification of deferred taxes

At December 31, 2017 and 2016, deferred taxes were classified on the Consolidated Balance Sheet as follows:



	At December 31
	2017			2016
Deferred charges and other assets	$	(4,750	)	$	(4,649	)
Noncurrent deferred income taxes	14,652			17,516
Total deferred income taxes, net	$	9,902		$	12,867

Changes to the Company's unrecognized tax benefits

The following table indicates the changes to the company’s unrecognized tax benefits for the years ended December 31, 2017, 2016 and 2015. The term “unrecognized tax benefits” in the accounting standards for income taxes refers to the differences between a tax position taken or expected to be taken in a tax return and the benefit measured and recognized in the financial statements. Interest and penalties are not included.



	2017			2016			2015
Balance at January 1	$	3,031		$	3,042		$	3,552
Foreign currency effects	43			1			(27		)
Additions based on tax positions taken in current year	1,853			245			154
Additions for tax positions taken in prior years	1,166			181			218
Reductions for tax positions taken in prior years	(90		)	(390		)	(678		)
Settlements with taxing authorities in current year	(1,173		)	(36		)	(5		)
Reductions as a result of a lapse of the applicable statute of limitations	(2		)	(12		)	(172		)
Balance at December 31	$	4,828		$	3,031		$	3,042

Taxes other than on income



Taxes Other Than on Income	Year ended December 31
	2017		2016		2015
United States
Excise and similar taxes on products and merchandise	$	4,398	$	4,335	$	4,426
Import duties and other levies	11		9		4
Property and other miscellaneous taxes	1,824		1,680		1,367
Payroll taxes	241		252		270
Taxes on production	206		159		157
Total United States	6,680		6,435		6,224
International
Excise and similar taxes on products and merchandise	2,791		2,570		2,933
Import duties and other levies	45		33		40
Property and other miscellaneous taxes	2,563		2,379		2,548
Payroll taxes	137		145		161
Taxes on production	115		106		124
Total International	5,651		5,233		5,806
Total taxes other than on income	$	12,331	$	11,668	$	12,030