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Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
Note 19—Income Taxes
Our effective tax rate for the three-month periods ended September 30, 2024, and September 30, 2023, was 36.4 percent and 31.8 percent, respectively. The change in the effective tax rate for the three-month period ended September 30, 2024, is primarily due to a shift in our mix of income among taxing jurisdictions as well as the release of tax reserves and the recognition of a Malaysia tax benefit occurring in the three-month period ending September 30, 2023.

Our effective tax rate for the nine-month periods ended September 30, 2024, and 2023, was 35.2 percent and 33.9 percent, respectively. The change in the effective tax rate for the nine-month period ended September 30, 2024, is primarily due to a release of tax reserves and a recognition of a $52 million Malaysia tax benefit in the nine-month period ending September 30, 2023, partly offset by a shift in our mix of income among our tax jurisdictions and a recognition of a $76 million Malaysia tax benefit.

During the first quarter of 2024, we recorded a $76 million tax benefit associated with a deepwater investment tax incentive for Malaysia Blocks J and G.

During the third quarter of 2023, we received legislative approval in the Malaysia Block J to claim a deepwater investment tax incentive. As a result, we recorded an income tax benefit of $52 million.

During the third quarter of 2023, the Canada Revenue Agency closed the 2018 domestic audit of one of our Canadian subsidiaries. As a result, we recognized a Canadian tax benefit of $92 million relating to our disposition of certain Canadian assets that was previously offset by a full reserve.

The Company has ongoing income tax audits in a number of jurisdictions. The government agents in charge of these audits regularly request additional time to complete audits, which we generally grant, and conversely occasionally close audits unpredictably. Within the next twelve months, we may have audit periods close that could significantly impact our total unrecognized tax benefits. The amount of such change is not estimable but could be significant when compared with our total unrecognized tax benefits.