v3.25.2
INCOME TAXES
 6 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense was $29 million and $72 million for the three and six months ended June 30, 2025, compared to income tax benefit of $(206) million and $(130) million for the same periods of 2024. The increase in tax expense in 2025 is primarily due to prior year tax benefits (partially offset by valuation allowances) related to legal entity restructuring projects in connection with the disposal of our European major appliance business and higher earnings in the current periods.
The following table summarizes the difference between income tax expense (benefit) at the U.S. statutory rate of 21% and the income tax expense (benefit) at effective worldwide tax rates for the respective periods:
Three Months Ended June 30, Six Months Ended June 30,
Millions of dollars2025202420252024
Earnings (Loss) before income taxes$121 $30 $260 $(148)
Income tax expense (benefit) computed at United States statutory tax rate25 6 55 (31)
State and local taxes, net of federal tax benefit2 (54)15 (55)
Valuation allowances(3)386 (2)405 
Audit and Settlements7 11 8 13 
U.S. foreign income items, net of credits(2)(2)(4)(15)
Sale of minority shares and capital gains— (2)— 77 
Legal Entity restructuring tax impact— (559)— (594)
Non deductible impairments— 15 — 64 
Non deductible fines and penalties— — — — 
Other— (7)1 6 
Income tax expense (benefit) computed at effective worldwide tax rates$29 $(206)$72 $(130)
At the end of each interim period, we estimate 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.