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Income Taxes | 9 Months Ended
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Sep. 30, 2016
Income Tax Disclosure [Abstract] |
Income taxes | INCOME TAXES Income tax expense was $61 million and $64 million for the three and nine months ended September 30, 2016, respectively, compared to income tax expense of $17 million and $116 million in the same periods of 2015. For the three and nine months ended September 30, 2016, changes in the effective tax rate from the prior period include tax planning and related valuation allowance releases, and favorable audits and settlements in the second quarter of 2016. The following table summarizes the difference between income tax expense at the United States statutory rate of 35% and the income tax expense at effective worldwide tax rates for the respective periods:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Millions of dollars |  | 2016 |  | 2015 |  | 2016 |  | 2015
Earnings before income taxes |  | $ | 305 |  |  | $ | 267 |  |  | $ | 806 |  |  | $ | 749 |
Income tax expense computed at United States statutory tax rate |  | 107 |  |  | 93 |  |  | 282 |  |  | 262 |
Valuation allowance releases |  | (59 | ) |  | (68 | ) |  | (164 | ) |  | (126 | )
Audits and settlements |  | (3 | ) |  | 6 |  |  | (35 | ) |  | 8 |
U.S. foreign income items, net of credits |  | 4 |  |  | (18 | ) |  | (6 | ) |  | (32 | )
Foreign government tax incentive |  | (2 | ) |  | — |  |  | (5 | ) |  | (8 | )
Other |  | 14 |  |  | 4 |  |  | (8 | ) |  | 12 |
Income tax expense computed at effective worldwide tax rates |  | $ | 61 |  |  | $ | 17 |  |  | $ | 64 |  |  | $ | 116 |
At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary.

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- Definition The entire disclosure for income 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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