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INCOME TAXES
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense was $3 million and $17 million for the three and six months ended June 30, 2026, compared to income tax expense of $29 million and $72 million for the same periods of 2025. The decrease in tax expense for the six months ended June 30, 2026, is primarily due to reduced earnings before income taxes and tax benefits related to transactions and restructuring.
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 dollars2026202520262025
Earnings (loss) before income taxes
$96 $121 $45 $260 
Income tax expense (benefit) computed at United States statutory tax rate21 25 10 55 
State and local taxes, net of federal tax benefit(3)2 (2)15 
Valuation allowances(37)(3)(31)(2)
Audit and Settlements11 7 13 8 
U.S. foreign income items, net of credits14 (2)16 (4)
Other(3)— 11 1 
Income tax expense (benefit) computed at effective worldwide tax rates$3 $29 $17 $72 
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.