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INCOME TAXES
 9 Months Ended
Sep. 30, 2026
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense was $8 million and $25 million for the three and nine months ended September 30, 2026, compared to income tax expense of $33 million and $105 million for the same periods of 2025. The decrease in tax expense for the nine months ended September 30, 2026, is primarily due to an earnings loss for the nine month period.
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 September 30, Nine Months Ended September 30,
Millions of dollars2026202520262025
Earnings (loss) before income taxes
$(112)$120 $(67)$381 
Income tax expense (benefit) computed at United States statutory tax rate(24)25 (14)80 
State and local taxes, net of federal tax benefit1 6 (1)21 
Valuation allowances80 (25)49 (28)
Audit and Settlements6 9 19 17 
U.S. foreign income items, net of credits(49)(8)(33)(12)
Legal Entity restructuring tax impact— 23 — 23 
Other(6)3 5 4 
Income tax expense (benefit) computed at effective worldwide tax rates$8 $33 $25 $105 
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.