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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2015
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,
| 2015 |  | 2014 |  | 2013
U.S. operations | $ | 5,327 |  |  | $ | 4,677 |  |  | $ | 3,531 |
International operations | 644 |  |  | 875 |  |  | 445 |
Income from continuing operations before income tax expense | $ | 5,971 |  |  | $ | 5,552 |  |  | $ | 3,976 |
Reconciliation of income tax expense related to continuing operations to income tax expense at statutory rate | The following is a reconciliation of income tax expense computed by applying statutory income tax rates as reflected in the table below to actual income tax expense related to continuing operations (in millions):
| Year Ended December 31, 2015
| U.S. |  | International |  | Total
Income tax expense at statutory rates | $ | 1,864 |  |  | $ | 92 |  |  | $ | 1,956 |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 45 |  |  | 73 |  |  | 118 |
Permanent differences: |  |  |  |  |
Manufacturing deduction | (102 | ) |  | — |  |  | (102 | )
Other | (18 | ) |  | (5 | ) |  | (23 | )
Change in tax law | — |  |  | (17 | ) |  | (17 | )
Tax effects of income associated with noncontrolling interests | (39 | ) |  | — |  |  | (39 | )
Other, net | (25 | ) |  | 2 |  |  | (23 | )
Income tax expense | $ | 1,725 |  |  | $ | 145 |  |  | $ | 1,870 |
| Year Ended December 31, 2014
| U.S. |  | International |  | Total
Income tax expense at statutory rates | $ | 1,637 |  |  | $ | 145 |  |  | $ | 1,782 |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 62 |  |  | 71 |  |  | 133 |
Permanent differences: |  |  |  |  |
Manufacturing deduction | (74 | ) |  | — |  |  | (74 | )
Other | (16 | ) |  | 1 |  |  | (15 | )
Tax effects of income associated with noncontrolling interests | (28 | ) |  | — |  |  | (28 | )
Other, net | (22 | ) |  | 1 |  |  | (21 | )
Income tax expense | $ | 1,559 |  |  | $ | 218 |  |  | $ | 1,777 |
| Year Ended December 31, 2013
| U.S. |  | International |  | Total
Income tax expense at statutory rates | $ | 1,236 |  |  | $ | 84 |  |  | $ | 1,320 |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 62 |  |  | 24 |  |  | 86 |
Permanent differences: |  |  |  |  |
Manufacturing deduction | (36 | ) |  | — |  |  | (36 | )
Nontaxable gain on disposition (See Notes 3 and 10) | (114 | ) |  | — |  |  | (114 | )
Other | 10 |  |  | (1 | ) |  | 9 |
Change in tax law | (10 | ) |  | (22 | ) |  | (32 | )
Tax effects of income associated with noncontrolling interests | (3 | ) |  | — |  |  | (3 | )
Other, net | 44 |  |  | (20 | ) |  | 24 |
Income tax expense | $ | 1,189 |  |  | $ | 65 |  |  | $ | 1,254 |
Statutory income tax rates applicable to the countries in which we operate were as follows:
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
U.S. | 35 | % |  | 35 | % |  | 35 | %
Canada | 15 | % |  | 15 | % |  | 15 | %
U.K. | 20 | % |  | 21 | % |  | 23 | %
Ireland | 13 | % |  | 13 | % |  | 13 | %
Aruba | 7 | % |  | 7 | % |  | 7 | %
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, 2015
| U. S. |  | International |  | Total
Current: |  |  |  |  |
Country | $ | 1,513 |  |  | $ | 64 |  |  | $ | 1,577 |
U.S. state / Canadian provincial | 85 |  |  | 43 |  |  | 128 |
Total current | 1,598 |  |  | 107 |  |  | 1,705 |
Deferred: |  |  |  |  |
Country | 143 |  |  | 8 |  |  | 151 |
U.S. state / Canadian provincial | (16 | ) |  | 30 |  |  | 14 |
Total deferred | 127 |  |  | 38 |  |  | 165 |
Income tax expense | $ | 1,725 |  |  | $ | 145 |  |  | $ | 1,870 |
| Year Ended December 31, 2014
| U. S. |  | International |  | Total
Current: |  |  |  |  |
Country | $ | 1,196 |  |  | $ | 53 |  |  | $ | 1,249 |
U.S. state / Canadian provincial | 59 |  |  | 24 |  |  | 83 |
Total current | 1,255 |  |  | 77 |  |  | 1,332 |
Deferred: |  |  |  |  |
Country | 268 |  |  | 94 |  |  | 362 |
U.S. state / Canadian provincial | 36 |  |  | 47 |  |  | 83 |
Total deferred | 304 |  |  | 141 |  |  | 445 |
Income tax expense | $ | 1,559 |  |  | $ | 218 |  |  | $ | 1,777 |
| Year Ended December 31, 2013
| U. S. |  | International |  | Total
Current: |  |  |  |  |
Country | $ | 635 |  |  | $ | 53 |  |  | $ | 688 |
U.S. state / Canadian provincial | 36 |  |  | 29 |  |  | 65 |
Total current | 671 |  |  | 82 |  |  | 753 |
Deferred: |  |  |  |  |
Country | 459 |  |  | (12 | ) |  | 447 |
U.S. state / Canadian provincial | 59 |  |  | (5 | ) |  | 54 |
Total deferred | 518 |  |  | (17 | ) |  | 501 |
Income tax expense | $ | 1,189 |  |  | $ | 65 |  |  | $ | 1,254 |
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,
| 2015 |  | 2014
Deferred income tax assets: |  |  |
Tax credit carryforwards | $ | 33 |  |  | $ | 37 |
Net operating losses (NOLs) | 423 |  |  | 436 |
Inventories | 72 |  |  | 160 |
Compensation and employee benefit liabilities | 331 |  |  | 358 |
Environmental liabilities | 80 |  |  | 92 |
Other | 139 |  |  | 178 |
Total deferred income tax assets | 1,078 |  |  | 1,261 |
Less: Valuation allowance | (435 | ) |  | (393 | )
Net deferred income tax assets | 643 |  |  | 868 |
Deferred income tax liabilities: |  |  |
Property, plant, and equipment | 6,725 |  |  | 6,682 |
Deferred turnaround costs | 394 |  |  | 356 |
Inventories | 287 |  |  | 426 |
Investments | 226 |  |  | 152 |
Other | 71 |  |  | 73 |
Total deferred income tax liabilities | 7,703 |  |  | 7,689 |
Net deferred income tax liabilities | $ | 7,060 |  |  | $ | 6,821 |
Income tax credit and loss carryforwards | We had the following income tax credit and loss carryforwards as of December 31, 2015 (in millions):
| Amount |  | Expiration
U.S. state income tax credits | $ | 51 |  |  | 2016 through 2027
U.S. state NOLs (gross amount) | 7,302 |  |  | 2016 through 2035
International NOLs | 1,465 |  |  | 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, 2015, such amounts will be allocated as follows (in millions):
Income tax benefit | $ | 429 |
Additional paid-in capital | 6 |
Total | $ | 435 |
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,
| 2015 |  | 2014 |  | 2013
Balance as of beginning of year | $ | 989 |  |  | $ | 950 |  |  | $ | 341 |
Additions based on tax positions related to the current year | 36 |  |  | 35 |  |  | 64 |
Additions for tax positions related to prior years | 83 |  |  | 118 |  |  | 576 |
Reductions for tax positions related to prior years | (82 | ) |  | (67 | ) |  | (26 | )
Reductions for tax positions related to the lapse of applicable statute of limitations | (3 | ) |  | (1 | ) |  | (4 | )
Settlements | (59 | ) |  | (46 | ) |  | (1 | )
Balance as of end of year | $ | 964 |  |  | $ | 989 |  |  | $ | 950 |
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, 2015 and 2014 that are reflected in Note 9 (in millions):
| December 31,
| 2015 |  | 2014
Unrecognized tax benefits | $ | 964 |  |  | $ | 989 |
Tax refund claim not recognized in our financial statements | (570 | ) |  | (554 | )
Reduction of deferred tax asset | (28 | ) |  | — |
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 | 25 |  |  | 49 |
Uncertain tax position liabilities | $ | 391 |  |  | $ | 484 |

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