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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Components of the (provision)/benefit for income taxes on continuing operations | The components of the provision for income taxes on continuing operations were:
| Year Ended December 31
Millions of dollars | 2019 | 2018 | 2017
Current income taxes: |  |  |
Federal | $ | 32 |  | $ | 19 |  | $ | 40 |
Foreign | (426 | ) | (428 | ) | (423 | )
State | (9 | ) | (15 | ) | (14 | )
Total current | (403 | ) | (424 | ) | (397 | )
Deferred income taxes: |  |  |
Federal | 383 |  | 286 |  | (678 | )
Foreign | (36 | ) | 9 |  | (31 | )
State | 49 |  | (28 | ) | (25 | )
Total deferred | 396 |  | 267 |  | (734 | )
Income tax provision | $ | (7 | ) | $ | (157 | ) | $ | (1,131 | )
United States and foreign components of income from continuing operations before income taxes | The United States and foreign components of income (loss) from continuing operations before income taxes were as follows:
| Year Ended December 31
Millions of dollars | 2019 | 2018 | 2017
United States | $ | (1,517 | ) | $ | 1,097 |  | $ | 694 |
Foreign | 395 |  | 717 |  | (12 | )
Total | $ | (1,122 | ) | $ | 1,814 |  | $ | 682 |
Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the US statutory rate to income from continuing operations before income taxes | Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the United States statutory rate to income (loss) from continuing operations before income taxes were as follows:
| Year Ended December 31
| 2019 | 2018 | 2017
United States statutory rate | 21.0 | % | 21.0 | % | 35.0 | %
Impact of impairments and other charges | (20.9 | ) | — |  | — |
Adjustments of prior year taxes | 13.0 |  | 2.0 |  | (2.3 | )
Valuation allowance against tax assets | (10.7 | ) | (16.2 | ) | (6.2 | )
State income taxes | (1.3 | ) | 1.9 |  | 1.7 |
Impact of foreign income taxed at different rates | 0.8 |  | (3.0 | ) | (18.3 | )
Venezuela adjustment | — |  | 5.7 |  | 36.6 |
Impact of U.S. tax reform | — |  | (2.6 | ) | 113.0 |
Undistributed foreign earnings | — |  | — |  | 3.8 |
Other items, net | (2.5 | ) | (0.1 | ) | 2.5 |
Total effective tax rate on continuing operations | (0.6 | )% | 8.7 | % | 165.8 | %
Primary components of deferred tax assets and liabilities | The primary components of our deferred tax assets and liabilities were as follows:
| December 31
Millions of dollars | 2019 | 2018
Gross deferred tax assets: |  |
Net operating loss carryforwards | $ | 1,301 |  | $ | 1,466 |
Foreign tax credit carryforwards | 877 |  | 728 |
Research and development tax credit carryforwards | 198 |  | 139 |
Employee compensation and benefits | 215 |  | 242 |
Accrued liabilities | 316 |  | 101 |
Other | 382 |  | 265 |
Total gross deferred tax assets | 3,289 |  | 2,941 |
Gross deferred tax liabilities: |  |
Depreciation and amortization | 373 |  | 635 |
Operating lease right-of-use assets | 109 |  | — |
Undistributed foreign earnings | 2 |  | 2 |
Other | 56 |  | 64 |
Total gross deferred tax liabilities | 540 |  | 701 |
Valuation allowances | 1,082 |  | 913 |
Net deferred income tax asset | $ | 1,667 |  | $ | 1,327 |
Rollforward of unrecognized tax benefits and associated interest and penalties | The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties.
Millions of dollars | Unrecognized Tax Benefits |  | Interest and Penalties
Balance at January 1, 2017 | $ | 427 |  |  | $ | 61 |
Change in prior year tax positions | (108 | ) |  | — |
Change in current year tax positions | 24 |  |  | 2 |
Cash settlements with taxing authorities | (6 | ) |  | — |
Lapse of statute of limitations | (4 | ) |  | (3 | )
Balance at December 31, 2017 | $ | 333 |  |  | $ | 60 |
Change in prior year tax positions | 32 |  |  | 11 |
Change in current year tax positions | 63 |  |  | — |
Cash settlements with taxing authorities | (7 | ) |  | (2 | )
Lapse of statute of limitations | (4 | ) |  | (2 | )
Balance at December 31, 2018 | $ | 417 |  | (a) | $ | 67 |
Change in prior year tax positions | 25 |  |  | 11 |
Change in current year tax positions | 29 |  |  | — |
Cash settlements with taxing authorities | (4 | ) |  | — |
Lapse of statute of limitations | (42 | ) |  | (8 | )
Balance at December 31, 2019 | $ | 425 |  | (a)(b) | $ | 70 |
(a) | Includes $25 million as of December 31, 2019 and $18 million as of December 31, 2018 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2019 and December 31, 2018, a net $271 million and $399 million without a net operating loss carryforward offset, respectively, of unrecognized tax benefits would positively impact the effective tax rate and be recognized as additional tax benefits in our statement of operations if resolved in our favor.
(b) Includes $30 million that could be resolved within the next 12 months.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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