Taxes (Tables)

12 Months Ended

Dec. 31, 2018



Income Taxes	Year ended December 31
	2018			2017			2016
Income tax expense (benefit)
U.S. federal
Current	$	(181	)	$	(382	)	$	(623	)
Deferred	738			(2,561		)	(1,558		)
State and local
Current	183			(97		)	(15		)
Deferred	(16		)	66			(121		)
Total United States	724			(2,974		)	(2,317		)
International
Current	4,662			3,634			2,744
Deferred	329			(708		)	(2,156		)
Total International	4,991			2,926			588
Total income tax expense (benefit)	$	5,715		$	(48	)	$	(1,729	)

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:



	2018			2017			2016
Income (loss) before income taxes
United States	$	4,730		$	(441	)	$	(4,317	)
International	15,845			9,662			2,157
Total income (loss) before income taxes	20,575			9,221			(2,160		)
Theoretical tax (at U.S. statutory rate of 21% - 2018, 35% - 2017 & 2016)	4,321			3,227			(756		)
Effect of U.S. tax reform	(26		)	(2,020		)	—
Equity affiliate accounting effect	(1,526		)	(1,373		)	(704		)
Effect of income taxes from international operations^*	3,132			(130		)	608
State and local taxes on income, net of U.S. federal income tax benefit	162			39			(44		)
Prior year tax adjustments, claims and settlements	(51		)	(39		)	(349		)
Tax credits	(163		)	(199		)	(188		)
Other U.S.^*	(134		)	447			(296		)
Total income tax expense (benefit)	$	5,715		$	(48	)	$	(1,729	)

Effective income tax rate	27.8		%	(0.5		)%	80.0		%

^*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
	2018			2017
Deferred tax liabilities
Properties, plant and equipment	$	20,159		$	19,869
Investments and other	4,943			4,796
Total deferred tax liabilities	25,102			24,665
Deferred tax assets
Foreign tax credits	(10,536		)	(11,872		)
Asset retirement obligations/environmental reserves	(5,328		)	(5,511		)
Employee benefits	(2,787		)	(3,129		)
Deferred credits	(1,373		)	(1,769		)
Tax loss carryforwards	(4,948		)	(5,463		)
Other accrued liabilities	(595		)	(842		)
Inventory	(505		)	(336		)
Miscellaneous	(3,481		)	(2,415		)
Total deferred tax assets	(29,553		)	(31,337		)
Deferred tax assets valuation allowance	15,973			16,574
Total deferred taxes, net	$	11,522		$	9,902

Classification of deferred taxes

At December 31, 2018 and 2017, deferred taxes were classified on the Consolidated Balance Sheet as follows:



	At December 31
	2018			2017
Deferred charges and other assets	$	(4,399	)	$	(4,750	)
Noncurrent deferred income taxes	15,921			14,652
Total deferred income taxes, net	$	11,522		$	9,902

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, 2018, 2017 and 2016. 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.



	2018			2017			2016
Balance at January 1	$	4,828		$	3,031		$	3,042
Foreign currency effects	(6		)	43			1
Additions based on tax positions taken in current year	239			1,853			245
Additions for tax positions taken in prior years	153			1,166			181
Reductions for tax positions taken in prior years	(131		)	(90		)	(390		)
Settlements with taxing authorities in current year	(13		)	(1,173		)	(36		)
Reductions as a result of a lapse of the applicable statute of limitations	—			(2		)	(12		)
Balance at December 31	$	5,070		$	4,828		$	3,031

Taxes other than on income



Taxes Other Than on Income	Year ended December 31
	2018			2017		2016
United States
Excise and similar taxes on products and merchandise*	$	4,830		$	4,398	$	4,335
Consumer excise taxes collected on behalf of third parties*	(4,830		)	—		—
Import duties and other levies	15			11		9
Property and other miscellaneous taxes	1,577			1,824		1,680
Payroll taxes	246			241		252
Taxes on production	325			206		159
Total United States	2,163			6,680		6,435
International
Excise and similar taxes on products and merchandise*	3,031			2,791		2,570
Consumer excise taxes collected on behalf of third parties*	(3,031		)	—		—
Import duties and other levies	37			45		33
Property and other miscellaneous taxes	2,370			2,563		2,379
Payroll taxes	132			137		145
Taxes on production	165			115		106
Total International	2,704			5,651		5,233
Total taxes other than on income	$	4,867		$	12,331	$	11,668

^*Beginning in 2018, these taxes are netted in "Taxes other than on income" in accordance with ASU 2014-09. Refer to Note 25, "Revenue" beginning on page 88.