Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components Of Earnings Before Income Taxes Between Domestic and Foreign Jurisdictions

The components of (Loss)/earnings before income taxes were:

Years ended December 31,	2020	2019	2018
U.S.	($14,882)	($2,792)	$11,166
Non-U.S.	406	533	438
Total	($14,476)	($2,259)	$11,604

Schedule Of Income Tax Expense/(Benefit)

Income tax (benefit)/expense consisted of the following:

Years ended December 31,	2020	2019	2018
Current tax (benefit)/expense
U.S. federal	($3,968)	($308)	$1,873
Non-U.S.	148	169	169
U.S. state	21	(161)	97
Total current	(3,799)	(300)	2,139
Deferred tax (benefit)/expense
U.S. federal	652	(953)	(996)
Non-U.S.		(3)	(4)
U.S. state	612	(367)	5
Total deferred	1,264	(1,323)	(995)
Total income tax (benefit)/expense	($2,535)	($1,623)	$1,144

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the U.S. federal statutory tax to actual income tax expense:

Years ended December 31,	2020			2019			2018
	Amount	Rate		Amount	Rate		Amount	Rate
U.S. federal statutory tax	($3,039)	21.0	%	($474)	21.0	%	$2,437	21.0	%
Valuation allowance	2,603	(18.0)		25	(1.1)		22	0.2
Impact of CARES Act (1)	(1,175)	8.1
Audit settlements(2)	(587)	4.1		(371)	16.4		(412)	(3.6)
Research and development credits	(284)	2.0		(382)	16.9		(207)	(1.8)
Other provision adjustments	234	(1.7)		66	(3.0)		91	1.0
State income tax provision, net of effects on U.S. federal tax	(168)	1.2		(45)	2.0		75	0.6
Excess tax benefits(3)	(82)	0.6		(180)	8.0		(181)	(1.6)
Foreign derived intangible income(4)	(31)	0.2		(229)	10.1		(549)	(4.7)
Tax deductible dividends	(13)	0.1		(53)	2.4		(48)	(0.4)
Tax on non-US activities	7	(0.1)		20	(0.9)		27	0.2
Impact of Tax Cuts and Jobs Act(5)							(111)	(1.0)
Income tax (benefit)/expense	($2,535)	17.5	%	($1,623)	71.8	%	$1,144	9.9	%

(1)    On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted, which includes a five year net operating loss (NOL) carryback provision which enabled us to benefit from certain losses and re-measure certain deferred tax assets and liabilities at the former federal tax rate of 35%. In 2020, we recorded tax benefits of $1,175 related to the NOL carryback provision.

(2)    In the fourth quarter of 2020, we recorded a tax benefit of $587 related to the settlement of the 2015-2017 federal tax audit. In the fourth quarter of 2019, we recorded a tax benefit of $371 related to the settlement of state tax audits spanning 15 tax years. In the third quarter of 2018, we recorded a tax benefit of $412 related to the settlement of the 2013-2014 federal tax audit.

(3)    In 2020, 2019 and 2018, we recorded excess tax benefits related to employee share-based payments of $82, $180 and $181, respectively.

(4)    In 2020, 2019 and 2018, we recorded tax benefits related to foreign derived intangible income of $31, $229 and $549, respectively which effectively apply a lower U.S. tax rate to intangible income derived from serving non-U.S. markets.

(5)    During the fourth quarter of 2018 and in accordance with U.S. Securities and Exchange Commission Staff Accounting Bulletin No. 118, the Company completed its accounting for the provisional amounts recognized at December 31, 2017 and recorded an incremental benefit related to refinements to these provisional amounts which was not significant.

Significant Components Of Deferred Tax Assets Net Of Deferred Tax Liabilities

Significant components of our deferred tax assets/(liabilities) at December 31 were as follows:

	2020	2019
Inventory and long-term contract methods of income recognition	($4,313)	($6,048)
Pension benefits	3,029	3,495
Fixed assets, intangibles and goodwill	(1,645)	(1,544)
737 MAX customer concessions and other considerations	1,253	1,626
Net operating loss, credit and capital loss carryovers(1)	1,182	696
Other postretirement benefit obligations	1,023	1,120
Other employee benefits	957	849
Accrued expenses and reserves	808	628
Customer and commercial financing	(180)	(268)
Other	56	(166)
Gross deferred tax assets/(liabilities) before valuation allowance	$2,170	$388
Valuation allowance	(3,094)	(118)
Net deferred tax assets/(liabilities) after valuation allowance	($924)	$270

(1)     Of the deferred tax asset for net operating loss and credit carryovers, $793 expires on or before December 31, 2040 and $389 may be carried over indefinitely.

Net Deferred Tax Assets and Liabilities

Net deferred tax assets/(liabilities) at December 31 were as follows:

	2020	2019
Deferred tax assets	$11,600	$10,722
Deferred tax liabilities	(9,430)	(10,334)
Valuation allowance	(3,094)	(118)
Net deferred tax assets/(liabilities)	($924)	$270

Schedule Of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2020	2019	2018
Unrecognized tax benefits – January 1	$1,476	$2,412	$1,736
Gross increases – tax positions in prior periods	44	100	87
Gross decreases – tax positions in prior periods	(581)	(1,418)	(410)
Gross increases – current period tax positions	136	344	1,208
Gross decreases – current period tax positions		(1)
Settlements	(109)	39	(206)
Statute Lapse			(3)
Unrecognized tax benefits – December 31	$966	$1,476	$2,412