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Income Taxes | 9 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Income tax benefit was $4 million and income tax expense was $69 million for the three and nine months ended September 30, 2017, respectively, compared to income tax expense of $61 million and $64 million in the same periods of 2016. For the three and nine months ended September 30, 2017, changes in the effective tax rate from the prior period include tax planning and related valuation allowance releases. The Company plans to distribute certain foreign earnings during 2017 and over the next several years. The 2017 distribution is forecasted to result in tax benefits that have been included in the Company's estimated annual and third quarter effective tax rate. The tax benefit on distributions that may be made in 2018 and beyond has not been recorded largely due to the distribution's contingent nature. The tax benefit for the three and nine months ended September 30, 2017 has been disclosed in the Company's effective tax rate reconciliation. The following table summarizes the difference between income tax (benefit) expense at the United States statutory rate of 35% and the income tax (benefit) expense at effective worldwide tax rates for the respective periods:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Millions of dollars |  | 2017 |  | 2016 |  | 2017 |  | 2016
Earnings before income taxes |  | $ | 268 |  |  | $ | 305 |  |  | $ | 678 |  |  | $ | 806 |
Income tax (benefit) expense computed at United States statutory tax rate |  | 94 |  |  | 107 |  |  | 237 |  |  | 282 |
Valuation allowances (releases) |  | (84 | ) |  | (59 | ) |  | (77 | ) |  | (164 | )
Audits and settlements |  | 7 |  |  | (3 | ) |  | 1 |  |  | (35 | )
U.S. foreign income items, net of credits |  | (17 | ) |  | 4 |  |  | (70 | ) |  | (6 | )
Foreign government tax incentive |  | (4 | ) |  | (2 | ) |  | (7 | ) |  | (5 | )
Other |  | — |  |  | 14 |  |  | (15 | ) |  | (8 | )
Income tax (benefit) expense computed at effective worldwide tax rates |  | $ | (4 | ) |  | $ | 61 |  |  | $ | 69 |  |  | $ | 64 |
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 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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