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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Income Before Income Taxes and Equity in Earnings (Losses) of Unconsolidated Affiliates
The components of income before income taxes and equity in (losses) earnings of unconsolidated affiliates are as follows:
Year Ended December 31,
(in millions)202220212020
Domestic$(45)$(73)$(649)
Foreign1,4081,2011,022
$1,363$1,128$373
Components of Income Tax Expense Attributable to Continuing Operations
The components of income tax expense attributable to continuing operations are as follows:
Year Ended December 31,
(in millions) 202220212020
Current expense:
Federal and state
$24$16$— 
Foreign358 293 244 
382 309 244 
Deferred (benefit) expense:
Federal and state(94)(106)(161)
Foreign(28)(40)(11)
(122)(146)(172)
$260 $163 $72 
Effective Income Tax Rate Reconciliation
The differences between the Company’s consolidated income tax expense attributable to continuing operations and the expense computed at the United States statutory income tax rate of 21% were as follows:
Year Ended December 31,
(in millions)202220212020
Federal income tax expense at statutory rate$286 $237 $78 
State and local income taxes, net of federal effect(15)19 
Research and development(19)(14)(14)
United States taxes recorded on foreign earnings(*)
(4)(29)
Tax contingencies14 (5)
Foreign Derived Intangible Income (“FDII”)(41)(34)(8)
Foreign rate differential38 17 25 
Equity compensation2 (23)(29)
Non-taxable gain on acquisition adjustment — 
Non-controlling interest — (5)
Other(1)
$260 $163 $72 
(*) Includes impact of GILTI, and other U.S. taxes on foreign earnings.
Income Tax Effects of Temporary Differences from Continuing Operations that Give Rise to Significant Portions of Deferred Income Tax Assets (Liabilities)
The income tax effects of temporary differences from continuing operations that give rise to significant portions of deferred income tax assets (liabilities) are presented below:
December 31,
(in millions)
20222021
Deferred income tax assets:
Net operating loss and capital loss carryforwards$145 $212 
Tax credit carryforwards295 375 
Accrued expenses and unearned income90 59 
Employee benefits202 212 
Lease liability73 92 
U.S. interest expense limitation30 62 
Other52 64 
Total deferred income tax assets887 1,076 
Valuation allowance for deferred income tax assets(257)(294)
Total deferred income tax assets (net of valuation allowance)630 782 
Deferred income tax liabilities:
Amortization and depreciation(727)(898)
Lease right-of-use assets(61)(81)
Foreign exchange on debt instruments(125)(36)
Other(63)(53)
Total deferred income tax liabilities(976)(1,068)
Net deferred income tax liabilities$(346)$(286)
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Income Tax Benefits
A reconciliation of the beginning and ending amount of gross unrecognized income tax benefits is presented below:
Year Ended December 31,
(in millions)202220212020
Balance as of January 1$116 $118 $120 
Additions based on tax positions related to the current year13 
Additions for income tax positions of prior years20 16 15 
Impact of changes in exchange rates(2)(3)
Settlements with tax authorities(4)(2)(2)
Reductions for income tax positions of prior years(11)(11)(16)
Reductions due to the lapse of the applicable statute of limitations(10)(9)(7)
Balance as of December 31$122 $116 $118 
Summary of Tax Years Open for Examination
The Company conducts business globally and, as a result, files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The following table summarizes the tax years that remain open for examination by tax authorities in the most significant jurisdictions in which the Company operates:

United States
2017-2021
India
2006-2022
Japan
2019-2021
United Kingdom
2020- 2021
Switzerland
2017-2021