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Income And Other Taxes | 12 Months Ended
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Dec. 31, 2024
Income And Other Taxes [Abstract] |
Income And Other Taxes | Income and Other Taxes
(millions of dollars) | 2024 |  | 2023 |  | 2022
U.S. | Non-U.S. | Total |  | U.S. | Non-U.S. | Total |  | U.S. | Non-U.S. | Total
Income tax expense (benefit) Federal and non-U.S. |  |  |  |  |  |  |  |  |  |  |
Current | 2,061 |  | 11,940 |  | 14,001 |  |  | 1,987 |  | 12,111 |  | 14,098 |  |  | 696 |  | 15,071 |  | 15,767 |
Deferred - net | (318) |  | (512) |  | (830) |  |  | 463 |  | 481 |  | 944 |  |  | 4,122 |  | (539) |  | 3,583 |
U.S. tax on non-U.S. operations | 241 |  | — |  | 241 |  |  | 315 |  | — |  | 315 |  |  | 65 |  | — |  | 65 |
Total federal and non-U.S. | 1,984 |  | 11,428 |  | 13,412 |  |  | 2,765 |  | 12,592 |  | 15,357 |  |  | 4,883 |  | 14,532 |  | 19,415 |
State | 398 |  | — |  | 398 |  |  | 72 |  | — |  | 72 |  |  | 761 |  | — |  | 761 |
Total income tax expense (benefit) | 2,382 |  | 11,428 |  | 13,810 |  |  | 2,837 |  | 12,592 |  | 15,429 |  |  | 5,644 |  | 14,532 |  | 20,176 |
All other taxes and duties |  |  |  |  |  |  |  |  |  |  |
Other taxes and duties | 3,849 |  | 22,439 |  | 26,288 |  |  | 3,871 |  | 25,140 |  | 29,011 |  |  | 4,087 |  | 23,832 |  | 27,919 |
Included in production and manufacturing expenses | 2,510 |  | 652 |  | 3,162 |  |  | 1,961 |  | 726 |  | 2,687 |  |  | 2,204 |  | 862 |  | 3,066 |
Included in SG&A expenses | 179 |  | 265 |  | 444 |  |  | 183 |  | 310 |  | 493 |  |  | 151 |  | 319 |  | 470 |
Total other taxes and duties | 6,538 |  | 23,356 |  | 29,894 |  |  | 6,015 |  | 26,176 |  | 32,191 |  |  | 6,442 |  | 25,013 |  | 31,455 |
Total | 8,920 |  | 34,784 |  | 43,704 |  |  | 8,852 |  | 38,768 |  | 47,620 |  |  | 12,086 |  | 39,545 |  | 51,631 |
The above provisions for deferred income taxes include net benefits of $28 million in 2024, and net expenses of $24 million and $30 million in 2023 and 2022, respectively, related to changes in tax laws and rates. Additional European Taxes on the Energy Sector. On October 6, 2022, European Union (“EU”) Member States adopted an EU Council Regulation which, along with other measures, introduced a new tax described as an emergency intervention to address high energy prices. This regulation imposed a mandatory tax on certain companies active in the crude petroleum, coal, natural gas, and refinery sectors. The regulation required EU Member States to levy a minimum 33 percent tax on in-scope companies’ 2022 and/or 2023 “surplus profits", defined in the regulation as taxable profits exceeding 120 percent of the annual average profits during the 2018-2021 period. EU Member States were required to implement the tax, or an equivalent national measure, by December 31, 2022. The enactment of these regulations by EU Member States resulted in an after-tax charge of approximately $1.8 billion to the Corporation’s fourth-quarter 2022 results and approximately $0.2 billion in 2023, mainly reflected in the line “Income tax expense (benefit)” on the Consolidated Statement of Income. The reconciliation between income tax expense (credit) and a theoretical U.S. tax computed by applying a rate of 21 percent for 2024, 2023, and 2022 is as follows:
(millions of dollars) | 2024 |  | 2023 |  | 2022
Income (loss) before income taxes |  |  |  |  |
United States | 12,258 |  |  | 14,786 |  |  | 28,281 |
Non-U.S. | 36,615 |  |  | 37,997 |  |  | 49,472 |
Total | 48,873 |  |  | 52,783 |  |  | 77,753 |
Theoretical tax | 10,263 |  |  | 11,084 |  |  | 16,328 |
Effect of equity method of accounting | (1,301) |  |  | (1,341) |  |  | (2,407) |
Non-U.S. taxes in excess of/(less than) theoretical U.S. tax (1) | 4,986 |  |  | 5,888 |  |  | 6,423 |
State taxes, net of federal tax benefit | 314 |  |  | 57 |  |  | 601 |
Other | (452) |  |  | (259) |  |  | (769) |
Total income tax expense (credit) | 13,810 |  |  | 15,429 |  |  | 20,176 |
Effective tax rate calculation |  |  |  |  |
Income tax expense (credit) | 13,810 |  |  | 15,429 |  |  | 20,176 |
ExxonMobil share of equity company income taxes | 3,197 |  |  | 3,058 |  |  | 7,594 |
Total income tax expense (credit) | 17,007 |  |  | 18,487 |  |  | 27,770 |
Net income (loss) including noncontrolling interests | 35,063 |  |  | 37,354 |  |  | 57,577 |
Total income (loss) before taxes | 52,070 |  |  | 55,841 |  |  | 85,347 |
Effective income tax rate | 33% |  | 33% |  | 33%
(1) Includes the impact of the additional European taxes on the energy sector of $115 million and $1,825 million in 2023 and 2022, respectively.
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. Deferred tax liabilities/(assets) are comprised of the following at December 31:
Tax effects of temporary differences for: (millions of dollars) | 2024 |  | 2023
Property, plant and equipment | 40,881 |  |  | 26,627 |
Other liabilities | 8,113 |  |  | 7,534 |
Total deferred tax liabilities | 48,994 |  |  | 34,161 |
Pension and other postretirement benefits | (1,365) |  |  | (1,777) |
Asset retirement obligations | (3,156) |  |  | (3,532) |
Tax loss carryforwards | (4,575) |  |  | (4,317) |
Other assets | (7,308) |  |  | (6,361) |
Total deferred tax assets | (16,404) |  |  | (15,987) |
Asset valuation allowances | 2,516 |  |  | 2,641 |
Net deferred tax liabilities | 35,106 |  |  | 20,815 |
In 2024, asset valuation allowances of $2,516 million decreased by $125 million and included net provisions of $41 million and foreign currency and other net benefits of $166 million.
Balance sheet classification (millions of dollars) | 2024 |  | 2023
Other assets, including intangibles, net | (3,936) |  |  | (3,637) |
Deferred income tax liabilities | 39,042 |  |  | 24,452 |
Net deferred tax liabilities | 35,106 |  |  | 20,815 |
The Corporation’s undistributed earnings from subsidiary companies outside the United States include amounts that have been retained to fund prior and future capital project expenditures. Deferred income taxes have not been recorded for potential future tax obligations, such as foreign withholding tax and state tax, as these undistributed earnings are expected to be indefinitely reinvested for the foreseeable future. As of December 31, 2024, it is not practicable to estimate the unrecognized deferred tax liability. However, unrecognized deferred taxes on remittance of these funds are not expected to be material. Unrecognized Tax Benefits. The Corporation is subject to income taxation in many jurisdictions around the world. The benefits of uncertain tax positions that the Corporation has taken or expects to take in its income tax returns are recognized in the financial statements if management concludes that it is more likely than not that the position will be sustained with the tax authorities. For a position that is likely to be sustained, the benefit recognized in the financial statements is measured at the largest amount that is greater than 50 percent likely of being realized. Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in unrecognized tax benefits:
Gross unrecognized tax benefits (millions of dollars) | 2024 |  | 2023 |  | 2022
Balance at January 1 | 3,935 |  |  | 3,398 |  |  | 9,130 |
Additions based on current year's tax positions | 376 |  |  | 350 |  |  | 539 |
Additions for prior years' tax positions | 103 |  |  | 400 |  |  | 294 |
Reductions for prior years' tax positions | (293) |  |  | (38) |  |  | (6,243) |
Reductions due to lapse of the statute of limitations | (17) |  |  | (25) |  |  | (16) |
Settlements with tax authorities | (13) |  |  | (153) |  |  | (277) |
Foreign exchange effects/other | (56) |  |  | 3 |  |  | (29) |
Balance at December 31 | 4,035 |  |  | 3,935 |  |  | 3,398 |
The gross unrecognized tax benefit balances shown above predominantly relate to tax positions that would reduce the Corporation’s effective tax rate if the positions are favorably resolved. Unfavorable resolution of these tax positions generally would not increase the effective tax rate. The 2024, 2023, and 2022 changes in unrecognized tax benefits did not have a material effect on the Corporation’s net income. Resolution of these tax positions through negotiations with the relevant tax authorities or through litigation may take many years to complete. It is difficult to predict the timing of resolution for these tax positions since the timing is not entirely within the control of the Corporation. Unlike 2022, during which litigation resolved certain unrecognized tax benefit positions, there was no major resolution of unrecognized tax benefit positions in 2023 or 2024. The Corporation has various U.S. federal income tax positions at issue with the Internal Revenue Service for tax years beginning with 2010. Unfavorable resolution of these issues would not have a materially adverse effect on the Corporation’s net income or liquidity. It is reasonably possible that the total amount of unrecognized tax benefits could increase by up to 20 percent or decrease by up to 30 percent in the next 12 months. The following table summarizes the tax years that remain subject to examination by major tax jurisdiction:
Country of Operation | Open Tax Years
Canada | 2001 | — | 2024
Kazakhstan | 2015 | — | 2024
Nigeria | 2017 | — | 2024
Papua New Guinea | 2008 | — | 2024
United Arab Emirates |  |  | 2024
United States | 2010 | — | 2024
The Corporation classifies interest on income tax-related balances as interest expense or interest income and classifies tax-related penalties as operating expense. For 2024, 2023, and 2022, the Corporation's net interest expense on income tax reserves was $142 million, $60 million, and $16 million, respectively. The related interest payable balances were $275 million and $134 million at December 31, 2024 and 2023, respectively.

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- Definition The entire disclosure for income and other taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. It includes other taxes. + References No definition available. + Details
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