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## 14. PROVISION FOR INCOME TAXES 

The provision for income taxes on income from continuing operations consisted of: 

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(a) Includes beneGLYPH<222>t of $30 million relating to certain prior year foreign exploration expenses. 

(b) Includes beneGLYPH<222>t of $48 million relating to prior year refunds of United Kingdom Advance Corporation Taxes and deductions for exploratory drilling. 

Income (loss) from continuing operations before income taxes consisted of the following: 

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(a) Includes substantially all of the CorporationGLYPH<213>s interest expense and the results of hedging activities. 

(b) Foreign income includes the CorporationGLYPH<213>s Virgin Islands, shipping and other operations located outside of the United States. 

Deferred income taxes arise from temporary differences between the tax bases of assets and liabilities and their recorded amounts in the financial statements. A summary of the components of deferred tax liabilities and assets at December 31 follows: 

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The difference between the Corporation’s effective income tax rate and the United States statutory rate is reconciled below: 

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