XML 66 R43.htm IDEA: XBRL DOCUMENT v3.20.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax Domestic and Foreign [Table Text Block] The sources of income from continuing operations before income taxes are:
(dollars in millions)202020192018
United States$(2,762)$1,594 $635 
Foreign409 2,558 1,869 
$(2,353)$4,152 $2,504 
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] The income tax expense (benefit) for the years ended December 31, 2020, 2019 and 2018 consisted of the following components:
(dollars in millions)202020192018
Current:
United States:
Federal$324 $(100)$(68)
State45 (58)
Foreign305 541 402 
674 383 335 
Future:
United States:
Federal(264)121 45 
State258 56 58 
Foreign(93)(139)660 
 (99)38 763 
Income tax expense$575 $421 $1,098 
Attributable to items credited (charged) to equity$(576)$40 $501 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
202020192018
(dollars in millions)AmountRateAmountRateAmountRate
Statutory U.S. federal income tax rate$(494)21.0 %$872 21.0 %$526 21.0 %
Tax on international activities35 (1.5)32 0.7 (25)(1.0)
Tax audit settlements  (290)(7.0)— — 
U.S. tax reform  — — 744 29.7 
Tax charges related to Separation Transactions and Raytheon Merger416 (17.7)— — — — 
Disposals of businesses177 (7.5)— — — — 
U.S. research and development credit(142)6.1 (101)(2.4)(73)(2.9)
Goodwill impairment668 (28.4)— — — — 
State income tax, net(56)2.4 16 0.4 (6)(0.2)
Foreign Derived Intangible Income (FDII)(83)3.5 (138)(3.3)(102)(4.1)
Other54 (2.3)30 0.7 34 1.3 
Effective income tax rate$575 (24.4)%$421 10.1 %$1,098 43.8 %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2020 and 2019 are as follows:
(dollars in millions)20202019
Future income tax benefits:
Insurance and employee benefits$3,004 $959 
Inventory and contract balances822 664 
Warranty provisions220 208 
Other basis differences637 614 
Tax loss carryforwards196 348 
Tax credit carryforwards959 930 
Valuation allowances(757)(432)
$5,081 $3,291 
Future income taxes payable:
Goodwill and Intangible assets$7,786 $4,205 
Fixed assets1,637 1,016 
Other basis differences151 638 
$9,574 $5,859 
Summary Of Tax Credit Carryforwards [Table Text Block] At December 31, 2020, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
(dollars in millions)Tax Credit
Carryforwards
Tax Loss
Carryforwards
Expiration period:
2021-2025$50 $126 
2026-203038 58 
2031-2040341 179 
Indefinite530 801 
Total$959 $1,164 
Summary Of Income Tax Contingencies [Table Text Block] A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 is as follows: 
(dollars in millions)202020192018
Balance at January 1$1,347 $1,619 $1,189 
Additions for tax positions related to the current year125 131 192 
Additions for tax positions of prior years323 73 344 
Reductions for tax positions of prior years(83)(101)(91)
Settlements(48)(375)(15)
Separation of Carrier and Otis(439)
Balance at December 31$1,225 $1,347 $1,619 
Gross interest expense related to unrecognized tax benefits$50 $57 $37 
Total accrued interest balance at December 31141 249 255