Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of the (provision)/benefit for income taxes on continuing operations

The components of the (provision) benefit for income taxes on continuing operations were as follows:


	Year Ended December 31
Millions of dollars	2023		2022		2021
Current income taxes:
Federal	$	(21)	$	(17)	$	6
Foreign	(472)		(417)		(270)
State	(12)		(11)		(6)
Total current income taxes	(505)		(445)		(270)
Deferred income taxes:
Federal	(123)		(159)		533
Foreign	(59)		103		(47)
State	(14)		(14)		—
Total deferred income taxes	(196)		(70)		486
Income tax (provision) benefit	$	(701)	$	(515)	$	216

United States and foreign components of income from continuing operations before income taxes

The United States and foreign components of income from continuing operations before income taxes were as follows:


	Year Ended December 31
Millions of dollars	2023		2022		2021
United States	$	1,666	$	992	$	283
Foreign	1,697		1,118		969
Total income from continuing operations before income taxes	$	3,363	$	2,110	$	1,252

Reconciliations between the actual provision for income taxes on continuing operations and that computed by applying the US statutory rate to income from continuing operations before income taxes

Reconciliations between the actual (provision) benefit for income taxes on continuing operations and that computed by applying the United States statutory rate to income from continuing operations before income taxes were as follows:


	Year Ended December 31
	2023		2022		2021
United States statutory rate	21.0	%	21.0	%	21.0	%
Valuation allowance against tax assets	0.8		(2.9)		(44.5)
Impact of foreign income taxed at different rates	0.2		3.0		2.5
State income taxes	0.7		0.8		0.1
Impact of impairments and other charges	0.6		0.7		—
Adjustments of prior year taxes	(1.3)		0.2		1.3




Other items, net	(1.2)		1.6		2.4
Total effective tax rate on continuing operations	20.8	%	24.4	%	(17.2)	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The primary components of our deferred tax assets and liabilities were as follows:


	December 31
Millions of dollars	2023		2022
Gross deferred tax assets:
Foreign tax credit carryforwards	$	902	$	961
Intangible assets	789		856
Net operating loss carryforwards	663		694
Accrued liabilities	293		259
Research and development tax credit carryforwards	173		219
Employee compensation and benefits	193		170
Other	579		515
Total gross deferred tax assets	3,592		3,674
Gross deferred tax liabilities:
Operating lease right-of-use assets	189		153
Depreciation and amortization	115		61

Other	51		39
Total gross deferred tax liabilities	355		253
Valuation allowances	761		821
Net deferred income tax asset	$	2,476	$	2,600

Rollforward of unrecognized tax benefits and associated interest and penalties

The following table presents a rollforward of our unrecognized tax benefits and associated interest and penalties.


Millions of dollars		Unrecognized Tax Benefits			Interest and Penalties
Balance at January 1, 2021		$	355		$	71
Change in prior year tax positions		14			4
Change in current year tax positions		14			2
Cash settlements with taxing authorities		(10)			—
Lapse of statute of limitations		(21)			(5)
Balance at December 31, 2021		$	352	(a)	$	72
Change in prior year tax positions		(36)			(5)
Change in current year tax positions		13			2
Cash settlements with taxing authorities		(6)			(2)
Lapse of statute of limitations		(12)			(3)
Balance at December 31, 2022		$	311	(a)	$	64
Change in prior year tax positions		(38)			(10)
Change in current year tax positions		8			1
Cash settlements with taxing authorities		(4)			(3)
Lapse of statute of limitations		(9)			(3)
Balance at December 31, 2023		$	268	(a)(b)	$	49

(a)	Includes $43 million as of December 31, 2023, $51 million as of December 31, 2022, and $20 million as of December 31, 2021 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2023, December 31, 2022, and December 31, 2021 a net $192 million, $208 million and $272 million after a net operating loss carryforward offset, respectively, of unrecognized tax benefits would positively impact the effective tax rate and be recognized as additional tax benefits in our statement of operations if resolved in our favor.
(b)	Includes $85 million as of December 31, 2023 that we believe could be resolved within the next 12 months.

Summary of Tax Credit Carryforwards

Our deferred tax assets from net operating losses, foreign tax credits, and research and development credits will expire as follows:


Millions of dollars	U.S. Net Operating Loss		Foreign Net Operating Loss		Foreign Tax Credits		Research and Development Credit		Total Deferred Tax Assets
2024-2028	$	3	$	129	$	450	$	—	$	582
2029-2033	8		13		474		—		495
2034-2043	25		88		—		173		286
Non-Expiring	17		403		—		—		420
	$	53	$	633	$	924	$	173	$	1,783