Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income before income taxes

U.S. and foreign income before taxes are set forth below:

	2022		2021		2020
U.S.	$	1,124	$	1,062	$	684
Foreign	538		612		336
	$	1,662	$	1,674	$	1,020

Details of income tax provision (benefit)

The details of our income tax provision (benefit) are set forth below:

		2022		2021		2020
Current:	Federal	$	139	$	45	$	37
	Foreign	200		214		121
	State	53		40		23
		$	392	$	299	$	181
Deferred:	Federal	$	(31)	$	21	$	(21)
	Foreign	(10)		(227)		(29)
	State	(14)		6		(15)
		$	(55)	$	(200)	$	(65)
		$	337	$	99	$	116

Effective income tax and tax rate reconciliation

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

	2022		2021		2020
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax	1.9		1.8		1.0
Statutory rate differential attributable to foreign operations	(2.0)		(1.0)		(0.9)
Adjustments to reserves and prior years	1.6		1.1		(1.7)
Excess tax benefits from stock-based awards	(1.4)		(2.7)		(3.4)
Change in valuation allowances	(0.5)		(0.8)		(2.5)
Impact of Russia Exit	4.3		—		—
Intercompany restructuring and Valuations of Intellectual Property	(4.9)		(11.3)		(0.3)
Nondeductible interest	—		1.4		—
Impact of tax law changes	—		(3.8)		(2.5)
Other, net	0.3		0.2		0.7
Effective income tax rate	20.3	%	5.9	%	11.4	%

Details of deferred tax assets (liabilities)

	2022		2021
Operating losses and interest deduction carryforwards	$	183	$	186
Capital losses	70		72
Tax credit carryforwards	206		194
Employee benefits	74		68
Share-based compensation	55		51
Lease-related liabilities	240		236
Accrued liabilities and other	40		52
Intangible assets	520		560
Property, plant and equipment	32		35
Deferred income	103		87
Capitalized Research & Development Costs	35		—
Gross deferred tax assets	1,558		1,541
Deferred tax asset valuation allowances	(458)		(462)
Net deferred tax assets	$	1,100	$	1,079
Property, plant and equipment	$	(79)	$	(85)
Operating lease right-of-use assets	(203)		(200)
Employee benefits	(7)		(24)
Derivative Instruments	(27)		(5)
Other	(35)		(49)
Gross deferred tax liabilities	$	(351)	$	(363)
Net deferred tax assets (liabilities)	$	749	$	716

The details of the 2022 and 2021 valuation allowance activity are set forth below:

	2022		2021
Beginning of Year	$	(462)	$	(789)
Increases	(22)		(31)
Decreases	21		355
Other Adjustments	5		3
End of Year	$	(458)	$	(462)

Reported in Consolidated Balance Sheets as:

	2022		2021
Deferred income taxes	$	750	$	724
Other liabilities and deferred credits	(1)		(8)
	$	749	$	716

Loss carryforwards, by year of expiration

	Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration
Federal net operating losses	$	9	$	2	$	—	2036-2037
Federal net operating losses - Indefinite	61		13		—		None
Foreign net operating losses	173		25		(4)		2023-2042
Foreign net operating losses - Indefinite	221		50		(32)		None
State net operating losses	1,315		56		(36)		2023-2041
Foreign capital loss carryforward - Indefinite	281		70		(70)		None
Foreign tax credits	200		200		(182)		2026-2032
State tax credits	6		6		(6)		2023
Federal interest deduction carryforward - Indefinite	30		6		—		None
State interest deduction carryforward - Indefinite	622		31		(30)		None
	$	2,918	$	459	$	(360)

Unrecognized tax benefits reconciliation

	2022		2021
Beginning of Year	$	116	$	175
Additions on tax positions - current year	4		13
Additions for tax positions - prior years	8		41
Reductions for tax positions - prior years	—		(110)
Reductions for settlements	—		(3)
End of Year	$	128	$	116