Company: OXY-WT
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000797468-25-000111
Chunk: 59

Company: OCCIDENTAL PETROLEUM CORP /DE/
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 59
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 as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. Occidental also enters into futures contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk, if any.

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NOTE 7 - INCOME TAXESThe following table summarizes components of income tax benefit (expense):Three months ended June 30,Six months ended June 30, millions2025202420252024Income before income taxes$738$1,635$2,070$2,645CurrentFederal(99)(303)(465)(546)State and Local(10)(12)(29)(24)Foreign(178)(194)(309)(334)Total current tax expense$(287)$(509)$(803)$(904)DeferredFederal4542188123State and Local(1)(1)41Foreign(27)3(46)11Total deferred tax benefit $17$44$146$135Total income tax expense$(270)$(465)$(657)$(769)Income from continuing operations$468$1,170$1,413$1,876Worldwide effective tax rate37 %28%32 %29%The worldwide effective tax rates for the periods presented in the table above were 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%.RECENT TAX LEGISLATIONThe OBBB was enacted on July 4, 2025, and introduces provisions expected to benefit Occidental including accelerated depreciation for newly acquired and constructed assets, favorable adjustments to interest expense limitation, immediate deduction of research and development costs, and increased tax credit values for qualified CO2 projects. In accordance with ASC 740, the financial statement impact of the OBBB will be recognized beginning in the third quarter of 2025. These provisions are expected to significantly reduce Occidental's 2025 cash tax liability.In August 2022, Congress passed the IRA that contains, among other provisions, certain tax incentives related to climate change and clean energy. Since the enactment of the IRA, the U.S. Department of the Treasury has released a substantial amount of regulatory and sub-regulatory guidance. However, much of this guidance remains unfinalized, and significant questions persist regarding its application. In January 2025, the Trump Administration issued an executive order that