Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We recognized total income tax expense from continuing operations of $74 million and $142 million for the three months and six months ended June 30, 2023, respectively, compared to income tax expense of $152 million and $343 million for the same periods in 2022. The decreases in income tax expense for the three months and six months ended June 30, 2023, compared to the same periods in 2022, were primarily due to the tax effects of a decrease in pretax earnings and an increase in qualified clean vehicle tax credits for purchased plug-in electric vehicles or fuel cell vehicles.

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.