Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We recognized total income tax expense from continuing operations of $152 million and $343 million for the three months and six months ended June 30, 2022, respectively, compared to income tax expense of $143 million and $354 million for the same periods in 2021. The increase in income tax expense for the three months ended June 30, 2022, compared to the same period in 2021, was primarily due to adjustments to the valuation allowance on foreign tax credit carryforwards, partially offset by the tax effects of a decrease in pretax earnings. The decrease in income tax expense for the six months ended June 30, 2022, compared to the same period in 2021, was primarily due to the tax effects of a decrease in pretax earnings, partially offset by adjustments to the valuation allowance on foreign tax credit carryforwards.

As of each reporting date, we consider existing evidence, both positive and negative, that could impact our view with regard to future realization of deferred tax assets. We continue to believe it is more likely than not that the benefit for certain foreign tax credit carryforwards and state net operating loss carryforwards will not be realized. In recognition of this risk, we continue to provide a partial valuation allowance on the deferred tax assets relating to these carryforwards and it is reasonably possible that the valuation allowance may change in the next 12 months.