Hess 2014 Annual Report Download - page 87

72
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
72
14. Income Taxes
The provision (benefit) for income taxes from continuing operations consisted of:
2014 2013 2012
(In millions)
United States
Federal
Current .................................................................................................................................... $ (1) $ 8 $ 30
Deferred .................................................................................................................................. 156 103 (435)
State ............................................................................................................................................. 57 9 31
212 120 (374)
Foreign
Current .................................................................................................................................... 453 941 2,012
Deferred .................................................................................................................................. 79 186 (224)
532 1,127 1,788
Total ........................................................................................................................................ 744 1,247 1,414
Adjustment of deferred taxes for foreign income tax law changes* ............................................ — (682) 115
Total provision for income taxes ............................................................................................. $ 744 $ 565 $ 1,529
* The reported amount for 2013 reflects $674 million for the effect of the Denmark hydrocarbon income tax law change to the Chapter 3A regime from the Chapter 3
regime in December 2013 and $8 million for the effect of a change in Norway’s hydrocarbon and base corporate income tax rates in December 2013. In 2012, the
reported amount reflects the effect of the UK supplementary income tax rate change in July 2012.
Income from continuing operations before income taxes consisted of the following:
2014 2013 2012
(In millions)
United States (a) ........................................................................................................................... $ 676 $ 580 $ (608)
Foreign ......................................................................................................................................... 1,760 4,021 3,945
Total income from continuing operations before income taxes .............................................. $ 2,436 $ 4,601 $ 3,337
(a) Includes substantially all of the Corporation’s interest expense, corporate expense and the results of commodity hedging activities.
The components of deferred tax liabilities and deferred tax assets at December 31 were as follows:
2014 2013
(In millions)
Deferred tax liabilities
Property, plant and equipment and investments .......................................................................................... $ (5,361) $ (5,581)
Other ........................................................................................................................................................... (269) (155)
Total deferred tax liabilities .................................................................................................................... (5,630) (5,736)
Deferred tax assets
Net operating loss carryforwards ................................................................................................................ 3,010 2,726
Tax credit carryforwards ............................................................................................................................. 193 161
Property, plant and equipment and investments .......................................................................................... 2,245 2,643
Accrued compensation, deferred credits and other liabilities...................................................................... 449 982
Asset retirement obligations ........................................................................................................................ 1,421 1,516
Other ........................................................................................................................................................... 261 216
Total deferred tax assets ......................................................................................................................... 7,579 8,244
Valuation allowances .................................................................................................................................. (1,416) (1,519)
Total deferred tax assets, net of valuation allowances ............................................................................ 6,163 6,725
Net deferred tax assets ............................................................................................................................ $ 533 $ 989