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INCOME TAXES
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Income tax expense was $76 million for the three months ended March 31, 2024, compared to income tax expense of $68 million for the same period of 2023. The increase in tax expense is primarily due to the sale of minority shares in Whirlpool of India and related capital gains, and legal entity restructuring tax impacts.
The following table summarizes the difference between income tax expense (benefit) at the U.S. statutory rate of 21% and the income tax expense (benefit) at effective worldwide tax rates for the respective periods:
Three Months Ended March 31,
Millions of dollars20242023
Earnings (Loss) before income taxes$(177)$(109)
Income tax expense (benefit) computed at United States statutory tax rate(37)(23)
State and local taxes, net of federal tax benefit(1)1 
Valuation allowances19 4 
Audit and Settlements2 20 
U.S. foreign income items, net of credits(13)2 
Sale of minority shares and capital gains79 — 
Legal Entity restructuring tax impact(35)— 
Non deductible impairments49 50 
Non deductible fines and penalties— 10 
Other13 4 
Income tax expense (benefit) computed at effective worldwide tax rates$76 $68 
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.
Subsequent Events
On April 1, 2024, the Company completed its transaction with Arcelik related to its European and MENA businesses. The disposal group has been classified as held for sale starting from the fourth quarter of 2022, resulting in a cumulative loss from disposal of businesses of approximately $1.9 billion through the first quarter of 2024. For income tax purposes, some of these losses were not realizable by the Company until the transaction closed in the second quarter of 2024. In addition to income tax recorded to date, the Company estimates that it will record additional deferred tax assets of between $100 and $300 million, net of applicable reserves and valuation allowances, in the second quarter of 2024, as a result of closing the transaction with Arcelik. For additional information, see Note 14 to the Consolidated Condensed Financial Statements.