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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income (loss) before income tax expense (benefit) from U.S. and international operations | Income before income tax expense was as follows (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. operations | $ | 9,335 |  |  | $ | 11,716 |  |  | $ | 1,023 |
Foreign operations | 2,433 |  |  | 3,591 |  |  | 520 |
Income before income tax expense | $ | 11,768 |  |  | $ | 15,307 |  |  | $ | 1,543 |
Reconciliation of income tax expense (benefit) related to continuing operations to income tax expense (benefit) at statutory rate | Statutory income tax rates applicable to the countries in which we operate were as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. | 21 | % |  | 21 | % |  | 21 | %
Canada | 15 | % |  | 15 | % |  | 15 | %
U.K. (a) | 25 | % |  | 19 | % |  | 19 | %
Ireland | 13 | % |  | 13 | % |  | 13 | %
Peru | 30 | % |  | 30 | % |  | 30 | %
Mexico | 30 | % |  | 30 | % |  | 30 | %
________________________ (a)Statutory income tax rate was increased to 25 percent effective April 1, 2023. The following is a reconciliation of income tax expense computed by applying statutory income tax rates to actual income tax expense (dollars in millions):
| U.S. |  | Foreign |  | Total
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Year ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Income tax expense at statutory rates | $ | 1,960 |  |  | 21.0 | % |  | $ | 449 |  |  | 18.5 | % |  | $ | 2,409 |  |  | 20.5 | %
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 114 |  |  | 1.2 | % |  | 161 |  |  | 6.6 | % |  | 275 |  |  | 2.3 | %
Permanent differences | (87) |  |  | (0.9) | % |  | (18) |  |  | (0.7) | % |  | (105) |  |  | (0.9) | %
GILTI tax | 167 |  |  | 1.8 | % |  | — |  |  | — |  |  | 167 |  |  | 1.4 | %
Foreign tax credits | (149) |  |  | (1.6) | % |  | — |  |  | — |  |  | (149) |  |  | (1.3) | %
Repatriation withholding tax | 45 |  |  | 0.5 | % |  | — |  |  | — |  |  | 45 |  |  | 0.4 | %
Tax effects of income associated with noncontrolling interests | (84) |  |  | (0.9) | % |  | 30 |  |  | 1.2 | % |  | (54) |  |  | (0.4) | %
Other, net | 8 |  |  | — | % |  | 23 |  |  | 0.9 | % |  | 31 |  |  | 0.3 | %
Income tax expense | $ | 1,974 |  |  | 21.1 | % |  | $ | 645 |  |  | 26.5 | % |  | $ | 2,619 |  |  | 22.3 | %
________________________ See notes on page 119.
| U.S. |  | Foreign |  | Total
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
Year ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Income tax expense at statutory rates | $ | 2,460 |  |  | 21.0 | % |  | $ | 611 |  |  | 17.0 | % |  | $ | 3,071 |  |  | 20.1 | %
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 182 |  |  | 1.6 | % |  | 255 |  |  | 7.1 | % |  | 437 |  |  | 2.8 | %
Permanent differences | (61) |  |  | (0.5) | % |  | (16) |  |  | (0.5) | % |  | (77) |  |  | (0.5) | %
GILTI tax | 413 |  |  | 3.5 | % |  | — |  |  | — |  |  | 413 |  |  | 2.7 | %
Foreign tax credits | (396) |  |  | (3.4) | % |  | — |  |  | — |  |  | (396) |  |  | (2.6) | %
Repatriation withholding tax | 51 |  |  | 0.4 | % |  | — |  |  | — |  |  | 51 |  |  | 0.3 | %
Tax effects of income associated with noncontrolling interests | (78) |  |  | (0.7) | % |  | 25 |  |  | 0.7 | % |  | (53) |  |  | (0.3) | %
Other, net | (27) |  |  | (0.2) | % |  | 9 |  |  | 0.3 | % |  | (18) |  |  | (0.1) | %
Income tax expense | $ | 2,544 |  |  | 21.7 | % |  | $ | 884 |  |  | 24.6 | % |  | $ | 3,428 |  |  | 22.4 | %
Year ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Income tax expense at statutory rates | $ | 215 |  |  | 21.0 | % |  | $ | 73 |  |  | 14.0 | % |  | $ | 288 |  |  | 18.7 | %
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 16 |  |  | 1.6 | % |  | 53 |  |  | 10.2 | % |  | 69 |  |  | 4.5 | %
Permanent differences | (34) |  |  | (3.3) | % |  | (14) |  |  | (2.7) | % |  | (48) |  |  | (3.1) | %
Changes in tax law (a) | (10) |  |  | (1.0) | % |  | 74 |  |  | 14.2 | % |  | 64 |  |  | 4.1 | %
CARES Act (b) | (56) |  |  | (5.5) | % |  | — |  |  | — |  |  | (56) |  |  | (3.6) | %
GILTI tax | 125 |  |  | 12.2 | % |  | — |  |  | — |  |  | 125 |  |  | 8.1 | %
Foreign tax credits | (103) |  |  | (10.1) | % |  | — |  |  | — |  |  | (103) |  |  | (6.7) | %
Settlements | (22) |  |  | (2.1) | % |  | — |  |  | — |  |  | (22) |  |  | (1.4) | %
Tax effects of income associated with noncontrolling interests | (74) |  |  | (7.2) | % |  | 30 |  |  | 5.8 | % |  | (44) |  |  | (2.9) | %
Other, net | (7) |  |  | (0.7) | % |  | (11) |  |  | (2.1) | % |  | (18) |  |  | (1.2) | %
Income tax expense | $ | 50 |  |  | 4.9 | % |  | $ | 205 |  |  | 39.4 | % |  | $ | 255 |  |  | 16.5 | %
________________________ (a)During the three months ended June 30, 2021, certain statutory income tax rate changes (primarily an increase in the U.K. rate from 19 percent to 25 percent effective in 2023) were enacted that resulted in the remeasurement of our deferred tax liabilities and related deferred income tax expense. (b)Upon filing our superseding 2020 federal income tax return in the fourth quarter of 2021, we recorded an additional tax benefit during the year ended December 31, 2021 related to the additional 2020 tax net operating loss (NOL) carryback to 2015, as permitted by the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted on March 27, 2020.
Components of income tax expense (benefit) | Components of income tax expense were as follows (in millions):
| U.S. |  | Foreign |  | Total
Year ended December 31, 2023 |  |  |  |  |
Current: |  |  |  |  |
Country | $ | 1,804 |  |  | $ | 415 |  |  | $ | 2,219 |
U.S. state / Canadian provincial | 157 |  |  | 140 |  |  | 297 |
Total current | 1,961 |  |  | 555 |  |  | 2,516 |
Deferred: |  |  |  |  |
Country | 25 |  |  | 69 |  |  | 94 |
U.S. state / Canadian provincial | (12) |  |  | 21 |  |  | 9 |
Total deferred | 13 |  |  | 90 |  |  | 103 |
Income tax expense | $ | 1,974 |  |  | $ | 645 |  |  | $ | 2,619 |
Year ended December 31, 2022 |  |  |  |  |
Current: |  |  |  |  |
Country | $ | 2,147 |  |  | $ | 766 |  |  | $ | 2,913 |
U.S. state / Canadian provincial | 153 |  |  | 312 |  |  | 465 |
Total current | 2,300 |  |  | 1,078 |  |  | 3,378 |
Deferred: |  |  |  |  |
Country | 164 |  |  | (138) |  |  | 26 |
U.S. state / Canadian provincial | 80 |  |  | (56) |  |  | 24 |
Total deferred | 244 |  |  | (194) |  |  | 50 |
Income tax expense | $ | 2,544 |  |  | $ | 884 |  |  | $ | 3,428 |
Year ended December 31, 2021 |  |  |  |  |
Current: |  |  |  |  |
Country | $ | 68 |  |  | $ | 215 |  |  | $ | 283 |
U.S. state / Canadian provincial | 1 |  |  | 97 |  |  | 98 |
Total current | 69 |  |  | 312 |  |  | 381 |
Deferred: |  |  |  |  |
Country | 5 |  |  | (63) |  |  | (58) |
U.S. state / Canadian provincial | (24) |  |  | (44) |  |  | (68) |
Total deferred | (19) |  |  | (107) |  |  | (126) |
Income tax expense | $ | 50 |  |  | $ | 205 |  |  | $ | 255 |
Schedule of income taxes paid (refunded), net | Income taxes paid to (received from) U.S. and foreign taxing authorities were as follows (in millions):
| Year Ended December 31, |
| 2023 |  | 2022 |  | 2021 |
U.S. | $ | 2,158 |  |  | $ | 2,396 |  |  | $ | (878) |  | (a)
Foreign | 1,336 |  |  | 892 |  |  | 36 |  |
Income taxes paid (refunded), net | $ | 3,494 |  |  | $ | 3,288 |  |  | $ | (842) |  |
________________________ (a)This amount includes a refund of $962 million that we received related to our U.S. federal income tax return for 2020.
Deferred income tax assets and liabilities | The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions):
| December 31,
| 2023 |  | 2022
Deferred income tax assets: |  |  |
Tax credit carryforwards | $ | 809 |  |  | $ | 660 |
NOLs | 710 |  |  | 642 |
Inventories | 237 |  |  | 326 |
Compensation and employee benefit liabilities | 32 |  |  | 44 |
Environmental liabilities | 59 |  |  | 57 |
Finance lease obligations | 314 |  |  | 309 |
Operating lease liabilities | 519 |  |  | 512 |
Other | 130 |  |  | 186 |
Total deferred income tax assets | 2,810 |  |  | 2,736 |
Valuation allowance | (1,383) |  |  | (1,234) |
Net deferred income tax assets | 1,427 |  |  | 1,502 |
Deferred income tax liabilities: |  |  |
Property, plant, and equipment | 5,121 |  |  | 5,022 |
Deferred turnaround costs | 399 |  |  | 369 |
Operating lease ROU assets | 546 |  |  | 507 |
Inventories | 106 |  |  | 234 |
Investments | 423 |  |  | 431 |
Other | 181 |  |  | 156 |
Total deferred income tax liabilities | 6,776 |  |  | 6,719 |
Net deferred income tax liabilities | $ | 5,349 |  |  | $ | 5,217 |
Income tax credit and loss carryforwards | We had the following income tax credit and loss carryforwards as of December 31, 2023 (in millions):
| Amount |  | Expiration
U.S. state income tax credits (gross amount) | $ | 76 |  |  | 2024 through 2033
U.S. state income tax credits (gross amount) | 2 |  |  | Unlimited
U.S. foreign tax credits | 748 |  |  | 2027 through 2033
U.S. state income tax NOLs (gross amount) | 12,164 |  |  | 2024 through 2040
Foreign NOLs (gross amount) | 329 |  |  | Unlimited
Reconciliation of the changes in unrecognized tax benefits | The following is a reconciliation of the changes in unrecognized tax benefits, excluding related interest and penalties (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Balance as of beginning of year | $ | 284 |  |  | $ | 816 |  |  | $ | 847 |
Additions for tax positions related to the current year | 18 |  |  | 27 |  |  | 3 |
Additions for tax positions related to prior years | 4 |  |  | 19 |  |  | 13 |
Reductions for tax positions related to prior years | (73) |  |  | (573) |  |  | (25) |
Reductions for tax positions related to the lapse of applicable statute of limitations | (9) |  |  | (5) |  |  | — |
Settlements | (38) |  |  | — |  |  | (22) |
Balance as of end of year | $ | 186 |  |  | $ | 284 |  |  | $ | 816 |

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