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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income from continuing operations before income tax expense from U.S. and international operations | Income from continuing operations before income tax expense was as follows (in millions):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
U.S. operations | $ | 4,677 |  |  | $ | 3,531 |  |  | $ | 4,015 |
International operations | 875 |  |  | 445 |  |  | 725 |
Income from continuing operations before income tax expense | $ | 5,552 |  |  | $ | 3,976 |  |  | $ | 4,740 |
Reconciliation of income tax expense related to continuing operations to federal income tax expense at U.S. federal statutory rate | The following is a reconciliation of income tax expense computed by applying the U.S. federal statutory income tax rate (35 percent for all years presented) to actual income tax expense related to continuing operations (in millions):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Federal income tax expense at the U.S. federal statutory rate | $ | 1,943 |  |  | $ | 1,392 |  |  | $ | 1,659 |
U.S. state income tax expense, net of U.S. federal income tax effect | 62 |  |  | 62 |  |  | 64 |
U.S. manufacturing deduction | (74 | ) |  | (36 | ) |  | (33 | )
International operations | (88 | ) |  | (69 | ) |  | (96 | )
Permanent differences | (16 | ) |  | (104 | ) |  | 20 |
Change in tax law | — |  |  | (32 | ) |  | — |
Other, net | (50 | ) |  | 41 |  |  | 12 |
Income tax expense | $ | 1,777 |  |  | $ | 1,254 |  |  | $ | 1,626 |
Components of income tax expense related to continuing operations | Components of income tax expense related to continuing operations were as follows (in millions):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Current: |  |  |  |  |
U.S. federal | $ | 1,196 |  |  | $ | 635 |  |  | $ | 515 |
U.S. state | 59 |  |  | 36 |  |  | 22 |
International | 77 |  |  | 82 |  |  | 126 |
Total current | 1,332 |  |  | 753 |  |  | 663 |
Deferred: |  |  |  |  |
U.S. federal | 268 |  |  | 459 |  |  | 854 |
U.S. state | 36 |  |  | 59 |  |  | 77 |
International | 141 |  |  | (17 | ) |  | 32 |
Total deferred | 445 |  |  | 501 |  |  | 963 |
Income tax expense | $ | 1,777 |  |  | $ | 1,254 |  |  | $ | 1,626 |
Deferred income tax assets and liabilities | The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions):
| December 31,
| 2014 |  | 2013
Deferred income tax assets: |  |  |
Tax credit carryforwards | $ | 37 |  |  | $ | 48 |
Net operating losses (NOLs) | 436 |  |  | 338 |
Inventories | 160 |  |  | 264 |
Property, plant, and equipment | — |  |  | 8 |
Compensation and employee benefit liabilities | 358 |  |  | 178 |
Environmental liabilities | 92 |  |  | 92 |
Other | 178 |  |  | 187 |
Total deferred income tax assets | 1,261 |  |  | 1,115 |
Less: Valuation allowance | (393 | ) |  | (347 | )
Net deferred income tax assets | 868 |  |  | 768 |
Deferred income tax liabilities: |  |  |
Property, plant, and equipment | 6,682 |  |  | 6,536 |
Deferred turnaround costs | 356 |  |  | 331 |
Inventories | 426 |  |  | 310 |
Investments | 152 |  |  | 94 |
Other | 73 |  |  | 81 |
Total deferred income tax liabilities | 7,689 |  |  | 7,352 |
Net deferred income tax liabilities | $ | 6,821 |  |  | $ | 6,584 |
Income tax credit and loss carryforwards | We had the following income tax credit and loss carryforwards as of December 31, 2014 (in millions):
| Amount |  | Expiration
U.S. state income tax credits | $ | 53 |  |  | 2015 through 2027
U.S. state NOLs (gross amount) | 6,574 |  |  | 2015 through 2034
International NOLs | 1,630 |  |  | Unlimited
Subsequently recognized tax benefits related to the valuation allowance for deferred income tax assets | Should we ultimately recognize tax benefits related to the valuation allowance for deferred income tax assets as of December 31, 2014, such amounts will be allocated as follows (in millions):
Income tax benefit | $ | 386 |
Additional paid-in capital | 7 |
Total | $ | 393 |
Reconciliation of the change in unrecognized tax benefits | The following is a reconciliation of the change in unrecognized tax benefits, excluding related penalties, interest (net of the U.S. federal and state income tax effects), and the U.S. federal income tax effect of state unrecognized tax benefits (in millions):
| Year Ended December 31,
| 2014 |  | 2013 |  | 2012
Balance as of beginning of year | $ | 950 |  |  | $ | 341 |  |  | $ | 326 |
Additions based on tax positions related to the current year | 35 |  |  | 64 |  |  | 11 |
Additions for tax positions related to prior years | 118 |  |  | 576 |  |  | 40 |
Reductions for tax positions related to prior years | (67 | ) |  | (26 | ) |  | (36 | )
Reductions for tax positions related to the lapse of applicable statute of limitations | (1 | ) |  | (4 | ) |  | — |
Settlements | (46 | ) |  | (1 | ) |  | — |
Balance as of end of year | $ | 989 |  |  | $ | 950 |  |  | $ | 341 |
Reconciliation of unrecognized tax benefits to uncertain tax position liabilities | The following is a reconciliation of unrecognized tax benefits reflected in the table above to our uncertain tax position liabilities as of December 31, 2014 and 2013 that are reflected in Note 10 (in millions):
| December 31,
| 2014 |  | 2013
Unrecognized tax benefits | $ | 989 |  |  | $ | 950 |
Tax refund claim not recognized in our financial statements | (554 | ) |  | (556 | )
Penalties, interest (net of U.S. federal and state income tax effect), and the U.S. federal income tax effect of state unrecognized tax benefits | 49 |  |  | 49 |
Uncertain tax position liabilities | $ | 484 |  |  | $ | 443 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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