Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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	2024		2023		2022
Current income taxes:
Federal	$	10	$	(21)	$	(17)
Foreign	(571)		(472)		(417)
State	(9)		(12)		(11)
Total current income taxes	(570)		(505)		(445)
Deferred income taxes:
Federal	(167)		(123)		(159)
Foreign	31		(59)		103
State	(12)		(14)		(14)
Total deferred income taxes	(148)		(196)		(70)
Income tax provision	$	(718)	$	(701)	$	(515)

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	2024		2023		2022
United States	$	1,695	$	1,666	$	992
Foreign	1,539		1,697		1,118
Total income from continuing operations before income taxes	$	3,234	$	3,363	$	2,110

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,
	2024		2023		2022
United States statutory rate	21.0	%	21.0	%	21.0	%
Valuation allowance against tax assets	(2.1)		0.8		(2.9)
Impact of foreign income taxed at different rates	4.7		0.2		3.0
State income taxes	0.6		0.7		0.8
Impact of impairments and other charges	0.6		0.6		0.7
Adjustments of prior year taxes	(2.5)		(1.3)		0.2




Other items, net	(0.1)		(1.2)		1.6
Total effective tax rate on continuing operations	22.2	%	20.8	%	24.4	%

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	2024		2023
Gross deferred tax assets:
Foreign tax credit carryforwards	$	950	$	902
Intangible assets	727		789
Net operating loss carryforwards	581		663
Accrued liabilities	227		293
Research and development tax credit carryforwards	85		173
Employee compensation and benefits	170		193
Other	639		579
Total gross deferred tax assets	3,379		3,592
Gross deferred tax liabilities:
Operating lease right-of-use assets	144		189
Depreciation and amortization	164		115

Other	50		51
Total gross deferred tax liabilities	358		355
Valuation allowances	718		761
Net deferred income tax asset	$	2,303	$	2,476

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
2025-2029	$	3	$	126	$	642	$	—	$	771
2030-2034	8		5		315		—		328
2035-2044	23		68		—		84		175
Non-Expiring	13		345		—		—		358
	$	47	$	544	$	957	$	84	$	1,632

Schedule of Unrecognized Tax Benefits Roll Forward

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, 2022		$	352		$	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)	$	49
Change in prior year tax positions		(68)			—
Change in current year tax positions		10			1
Cash settlements with taxing authorities		(1)			(1)
Lapse of statute of limitations		(13)			(4)
Balance at December 31, 2024		$	196	(a)(b)	$	45

(a)	Includes $40 million as of December 31, 2024, $43 million as of December 31, 2023, and $51 million as of December 31, 2022 in foreign unrecognized tax benefits that would give rise to a United States tax credit. As of December 31, 2024, December 31, 2023, and December 31, 2022, a net $137 million, $192 million and $208 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 $64 million as of December 31, 2024 that we believe could be resolved within the next 12 months.