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Income Taxes
 6 Months Ended
Jun. 30, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]  
Income Taxes
INCOME TAXES
Income tax expense for the three and six months ended June 30, 2014 was $50 million and $100 million, respectively, compared to income tax expense of $39 million for the three months ended June 30, 2013 and an income tax benefit of $28 million for the six months ended June 30, 2013. The following table summarizes the difference between income tax expense (benefit) at the United States statutory rate of 35% 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 dollars

2014

2013

2014

2013
Earnings before income taxes

$
235


$
245


$
449


$
435

Income tax expense computed at United States statutory tax rate

$
82


$
85


$
157


$
152

U.S. government tax incentives, including Energy Tax Credits

—


(17
)

—


(111
)
U.S. foreign income items, net of credits
 
(13
)
 
—

 
(25
)
 
(22
)
Foreign government tax incentive, including BEFIEX

(5
)

(18
)

(11
)

(28
)
Other

(14
)

(11
)

(21
)

(19
)
Income tax expense (benefit) computed at effective worldwide tax rates

$
50


$
39


$
100


$
(28
)

At the end of each interim period, we make our best estimate of 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.