Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Components Of Income Tax Provisions (Benefits)

The provision for income taxes from continuing operations consisted of:


(Millions of dollars)	2024		2023		2022
Current:
Federal	$	862	$	2,359	$	3,565
State and local	144		475		629
Foreign	8		11		7
Total current	1,014		2,845		4,201
Deferred:
Federal	(90)		18		191
State and local	(33)		(46)		98
Foreign	(1)		—		1
Total deferred	(124)		(28)		290
Income tax provision	$	890	$	2,817	$	4,491

Reconciliation Of Federal Statutory Income Tax Rate

A reconciliation of the federal statutory income tax rate to the effective tax rate applied to income from continuing operations before income taxes follows:


	2024		2023		2022
Federal statutory rate	21	%	21	%	21	%
State and local income taxes, net of federal income tax effects	2		2		3
Noncontrolling interests	(6)		(2)		(2)
Other	(2)		(1)		—
Effective tax rate applied to income from continuing operations before income taxes	15	%	20	%	22	%

Components Of Deferred Tax Assets And Liabilities

Deferred tax assets and liabilities resulted from the following:


	December 31,
(Millions of dollars)	2024		2023
Deferred tax assets:
Employee benefits	$	558	$	549
Environmental remediation	81		89
Finance lease obligations	433		365
Operating lease liabilities	243		229
Net operating loss carryforwards	39		44
Tax credit carryforwards	22		10
Goodwill and other intangibles	75		71
Other	95		96
Total deferred tax assets	1,546		1,453
Valuation allowance	(51)		(28)
Total net deferred tax assets	1,495		1,425
Deferred tax liabilities:
Property, plant and equipment	2,584		2,684
Inventories	672		627
Investments in subsidiaries and affiliates	3,742		3,706
Right of use assets	246		230
Other	20		11
Total deferred tax liabilities	7,264		7,258
Net deferred tax liabilities	$	5,769	$	5,833

Net deferred tax liabilities were classified in the consolidated balance sheets as follows:


	December 31,
(Millions of dollars)	2024		2023
Assets:
Other noncurrent assets	$	2	$	1
Liabilities:
Deferred income taxes	5,771		5,834
Net deferred tax liabilities	$	5,769	$	5,833

Summary Of Activity In Unrecognized Tax Benefits

The following table summarizes the activity in unrecognized tax benefits:


(Millions of dollars)	2024		2023		2022
January 1 balance	$	38	$	57	$	37

Additions for tax positions of prior years	—		8		38
Reductions for tax positions of prior years	(5)		(6)		(2)
Settlements	(6)		(20)		(15)
Statute of limitations	—		(1)		(1)
December 31 balance	$	27	$	38	$	57