Hess 2011 Annual Report Download - page 96

HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
A summary of the components of deferred tax liabilities, deferred tax assets and taxes deferred at
December 31 follows:
2011 2010
(Millions of dollars)
Deferred tax liabilities
Property, plant and equipment ...................................... $(3,742) $(4,026)
Other .......................................................... (125) (52)
Total deferred tax liabilities ...................................... (3,867) (4,078)
Deferred tax assets
Net operating loss carryforwards .................................... 1,204 896
Tax credit carryforwards .......................................... 396 244
Property, plant and equipment and investments ......................... 2,217 1,852
Investment in HOVENSA ......................................... 331 —
Accrued compensation and other liabilities ............................ 508 391
Asset retirement obligations ........................................ 438 369
Other .......................................................... 332 302
Total deferred tax assets ......................................... 5,426 4,054
Valuation allowances* ............................................ (1,071) (444)
Total deferred tax assets, net ..................................... 4,355 3,610
Net deferred tax assets (liabilities) ................................. $ 488 $ (468)
* The increase in the valuation allowances from 2010 to 2011 is principally attributable to operating loss and tax credit carry forwards and
other deductible temporary differences originating in the current year.
At December 31, 2011, the Corporation has recognized a gross deferred tax asset related to net operating
loss carryforwards of $1,204 million before application of the valuation allowances. The deferred tax asset is
comprised of approximately $920 million attributable to foreign net operating losses, which begin to expire in
2020, $90 million attributable to United States federal operating losses which begin to expire in 2020 and $194
million attributable to losses in various states which begin to expire in 2012. At December 31, 2011, the
Corporation has federal, state and foreign alternative minimum tax credit carryforwards of approximately
$140 million, which can be carried forward indefinitely and approximately $1 million of other business credit
carryforwards. Foreign tax credit carryforwards, which begin to expire in 2016, total $255 million. Included
within Property, plant and equipment and investments in the foregoing table are taxes deferred, resulting from
intercompany transactions eliminated in consolidation related to transfers of property, plant and equipment
remaining within the consolidated group.
In the Consolidated Balance Sheet at December 31, deferred tax assets and liabilities from the preceding table
are netted by taxing jurisdiction, combined with taxes deferred on intercompany transactions, and are recorded in
the following captions:
2011 2010
(Millions of dollars)
Other current assets ................................................ $ 398 $ 386
Deferred income taxes (long-term asset) ................................ 2,941 2,167
Accrued liabilities .................................................. (8) (26)
Deferred income taxes (long-term liability) .............................. (2,843) (2,995)
Net deferred tax assets (liabilities) ................................... $ 488 $ (468)
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