OCCIDENTAL PETROLEUM CORP DE
For the period ended Mar 31, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
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Income Taxes
The following table sets forth the calculation of the worldwide effective tax rate for income:
| Three months ended | |||
|---|---|---|---|
| millions, except percentages | March 31, 2024 | December 31, 2023 | March 31, 2023 |
| Income before income taxes | $1,010 | $1,559 | $1,734 |
| Income tax expense | |||
| Domestic - federal and state | (172) | (150) | (300) |
| International | (132) | (211) | (171) |
| Total income tax expense | (304) | (361) | (471) |
| Net income | $706 | $1,198 | $1,263 |
| Worldwide effective tax rate | 30% | 23% | 27% |
Occidental estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which Occidental operates, adjusted for certain discrete items. Each quarter, Occidental updates these rates and records a cumulative adjustment to its income taxes by applying the rates to the pre-tax income excluding certain discrete items. Occidental’s quarterly estimate of its effective tax rates can vary significantly based on various forecasted items, including future commodity prices, capital expenditures, expenses for which tax benefits are not recognized and the geographic mix of pre-tax income and losses.
The worldwide effective tax rates for the periods presented in the table above are primarily driven by Occidental's jurisdictional mix of income. U.S. income is taxed at a U.S. federal statutory rate of 21%, while international income is subject to tax at statutory rates as high as 55%.
INFLATION REDUCTION ACT AND PILLAR TWO
For more information on the potential impacts to Occidental related to the IRA and Pillar Two initiative, see Note 7 - Income Taxes.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.