Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income before Income Tax Expense from U.S. and Foreign Operations

Income before income tax expense was as follows (in millions):


	Year Ended December 31,
	2024		2023		2022
U.S. operations	$	2,685	$	9,335	$	11,716
Foreign operations	1,013		2,433		3,591
Income before income tax expense	$	3,698	$	11,768	$	15,307

Reconciliation of Income Tax Expense Related to Continuing Operations to Income Tax Expense at Statutory Rate

Statutory income tax rates applicable to the countries in which we operate were as follows:


	Year Ended December 31,
	2024		2023		2022
U.S.	21	%	21	%	21	%
Canada	15	%	15	%	15	%
U.K. (a)	25	%	25	%	19	%
Ireland	13	%	13	%	13	%
Peru	30	%	30	%	30	%
Mexico	30	%	30	%	30	%

________________________

(a)Statutory income tax rate was increased to 25 percent effective April 1, 2023.

The following is a reconciliation of income tax expense computed by applying statutory income tax rates to actual income tax expense (dollars in millions):


	U.S.				Foreign				Total
	Amount		Percent		Amount		Percent		Amount		Percent
Year ended December 31, 2024
Income tax expense at statutory rates	$	564	21.0	%	$	142	14.0	%	$	706	19.1	%
U.S. state and Canadian provincial tax expense, net of federal income tax effect	19		0.7	%	101		10.0	%	120		3.2	%
Permanent differences	(83)		(3.1)	%	2		0.2	%	(81)		(2.2)	%
GILTI tax	79		2.9	%	—		—	%	79		2.1	%
Foreign tax credits	(59)		(2.2)	%	—		—	%	(59)		(1.5)	%
Biofuels tax credits (a)	(101)		(3.7)	%	—		—	%	(101)		(2.7)	%
Repatriation withholding tax	57		2.1	%	—		—	%	57		1.5	%


Tax effects of income associated with noncontrolling interests	(50)		(1.8)	%	(6)		(0.6)	%	(56)		(1.5)	%
Valuation allowance	—		—	%	57		5.6	%	57		1.5	%
Other, net	(37)		(1.4)	%	7		0.7	%	(30)		(0.8)	%
Income tax expense	$	389	14.5	%	$	303	29.9	%	$	692	18.7	%

________________________

(a)As permitted under Section 40(b) of the Internal Revenue Code of 1986, as amended (the Code), producers of second-generation biofuels that are registered with the Internal Revenue Service (IRS) are eligible for an income tax credit of up to $1.01 per gallon of qualified biofuel that was produced and sold in the U.S. through December 31, 2024. We recorded a gross tax benefit in December 2024 related to these tax credits for the cellulosic ethanol produced by our Ethanol segment from 2020 through 2024.


	U.S.				Foreign				Total
	Amount		Percent		Amount		Percent		Amount		Percent
Year ended December 31, 2023
Income tax expense at statutory rates	$	1,960	21.0	%	$	449	18.5	%	$	2,409	20.5	%
U.S. state and Canadian provincial tax expense, net of federal income tax effect	114		1.2	%	161		6.6	%	275		2.3	%
Permanent differences	(87)		(0.9)	%	(18)		(0.7)	%	(105)		(0.9)	%
GILTI tax	167		1.8	%	—		—		167		1.4	%
Foreign tax credits	(149)		(1.6)	%	—		—		(149)		(1.3)	%
Repatriation withholding tax	45		0.5	%	—		—		45		0.4	%

Tax effects of income associated with noncontrolling interests	(84)		(0.9)	%	30		1.2	%	(54)		(0.4)	%
Other, net	8		—	%	23		0.9	%	31		0.3	%
Income tax expense	$	1,974	21.1	%	$	645	26.5	%	$	2,619	22.3	%

Year ended December 31, 2022
Income tax expense at statutory rates	$	2,460	21.0	%	$	611	17.0	%	$	3,071	20.1	%
U.S. state and Canadian provincial tax expense, net of federal income tax effect	182		1.6	%	255		7.1	%	437		2.8	%
Permanent differences	(61)		(0.5)	%	(16)		(0.5)	%	(77)		(0.5)	%
GILTI tax	413		3.5	%	—		—		413		2.7	%
Foreign tax credits	(396)		(3.4)	%	—		—		(396)		(2.6)	%
Repatriation withholding tax	51		0.4	%	—		—		51		0.3	%

Tax effects of income associated with noncontrolling interests	(78)		(0.7)	%	25		0.7	%	(53)		(0.3)	%
Other, net	(27)		(0.2)	%	9		0.3	%	(18)		(0.1)	%
Income tax expense	$	2,544	21.7	%	$	884	24.6	%	$	3,428	22.4	%

Components of Income Tax Expense

Components of income tax expense were as follows (in millions):


	U.S.		Foreign		Total
Year ended December 31, 2024
Current:
Country	$	464	$	180	$	644
U.S. state / Canadian provincial	37		98		135
Total current	501		278		779
Deferred:
Country	(99)		23		(76)
U.S. state / Canadian provincial	(13)		2		(11)
Total deferred	(112)		25		(87)
Income tax expense	$	389	$	303	$	692

Year ended December 31, 2023
Current:
Country	$	1,804	$	415	$	2,219
U.S. state / Canadian provincial	157		140		297
Total current	1,961		555		2,516
Deferred:
Country	25		69		94
U.S. state / Canadian provincial	(12)		21		9
Total deferred	13		90		103
Income tax expense	$	1,974	$	645	$	2,619

Year ended December 31, 2022
Current:
Country	$	2,147	$	766	$	2,913
U.S. state / Canadian provincial	153		312		465
Total current	2,300		1,078		3,378
Deferred:
Country	164		(138)		26
U.S. state / Canadian provincial	80		(56)		24
Total deferred	244		(194)		50
Income tax expense	$	2,544	$	884	$	3,428

Schedule of Income Taxes Paid

Income taxes paid to U.S. and foreign taxing authorities were as follows (in millions):


	Year Ended December 31,
	2024		2023		2022
U.S.	$	701	$	2,158	$	2,396
Foreign	142		1,336		892
Income taxes paid, net	$	843	$	3,494	$	3,288

Deferred Income Tax Assets and Liabilities

The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions):


	December 31,
	2024		2023
Deferred income tax assets:
Tax credit carryforwards	$	858	$	809
Net operating losses (NOLs)	689		710
Inventories	197		237



Finance lease obligations	317		314
Operating lease liabilities	502		519
Other	195		221
Total deferred income tax assets	2,758		2,810
Valuation allowance	(1,484)		(1,383)
Net deferred income tax assets	1,274		1,427
Deferred income tax liabilities:
Property, plant, and equipment	4,875		5,121
Deferred turnaround costs	450		399
Operating lease ROU assets	467		546

Investments	417		423
Other	332		287
Total deferred income tax liabilities	6,541		6,776
Net deferred income tax liabilities	$	5,267	$	5,349

Income Tax Credit and Loss Carryforwards

We had the following income tax credit and loss carryforwards as of December 31, 2024 (in millions):


	Amount		Expiration
U.S. state income tax credits (gross amount)	$	79	2025 through 2039
U.S. state income tax credits (gross amount)	2		Unlimited
U.S. foreign tax credits	794		2027 through 2034
U.S. state income tax NOLs (gross amount)	12,071		2025 through 2040

Foreign NOLs (gross amount)	82		2029 through 2034
Foreign NOLs (gross amount)	174		Unlimited

Reconciliation of the Changes in Unrecognized Tax Benefits

The following is a reconciliation of the changes in unrecognized tax benefits, excluding related interest and penalties (in millions):


	Year Ended December 31,
	2024		2023		2022
Balance as of beginning of year	$	186	$	284	$	816
Additions for tax positions related to the current year	52		18		27
Additions for tax positions related to prior years	106		4		19
Reductions for tax positions related to prior years	(19)		(73)		(573)
Reductions for tax positions related to the lapse of applicable statute of limitations	(7)		(9)		(5)
Settlements	(2)		(38)		—

Balance as of end of year	$	316	$	186	$	284