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64
related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect
on our liquidity, consolidated results of operations, or consolidated financial position. Our accrued liabilities for environmental
matters were $50 million as of December 31, 2015 and $57 million as of December 31, 2014. Because our estimated liability is
typically within a range and our accrued liability may be the amount on the low end of that range, our actual liability could
eventually be well in excess of the amount accrued. Our total liability related to environmental matters covers numerous
properties.
Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third
parties for eight federal and state Superfund sites for which we have established reserves. As of December 31, 2015, those eight
sites accounted for approximately $3 million of our $50 million total environmental reserve. Despite attempts to resolve these
Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount
accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency;
however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims
with respect to environmental matters for which we have been named as a potentially responsible party.
Guarantee arrangements
In the normal course of business, we have agreements with financial institutions under which approximately $2.0
billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2015. Some of the
outstanding letters of credit have triggering events that would entitle a bank to require cash collateralization.
Leases
We are party to numerous operating leases, principally for the use of land, offices, equipment, manufacturing and field
facilities, and warehouses. Total rentals on our operating leases, net of sublease rentals, were $875 million in 2015, $1.0 billion
in 2014, and $958 million in 2013.
Future total rentals on our noncancellable operating leases are $944 million in the aggregate, which includes the
following: $257 million in 2016; $171 million in 2017; $132 million in 2018; $96 million in 2019; $60 million in 2020; and
$228 million thereafter.
Note 10. Income Taxes
The components of the benefit (provision) for income taxes on continuing operations were:
Year Ended December 31
Millions of dollars 2015 2014 2013
Current income taxes:
Federal $ 635 $ (959) $ (245)
Foreign (636) (734) (485)
State 51 (36) (49)
Total current 50 (1,729) (779)
Deferred income taxes:
Federal (18) 83 4
Foreign 262 357 125
State (20) 14 2
Total deferred 224 454 131
Income tax benefit (provision) $ 274 $ (1,275) $ (648)
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 2015 2014 2013
United States $ (1,560)$ 3,020 $ 1,070
Foreign 624 1,692 1,694
Total $ (936)$ 4,712 $ 2,764