Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The sources of income from operations before income taxes are:

(dollars in millions)	2022		2021		2020
United States	$	484	$	420	$	105
Foreign	1,404		1,541		1,406
	$	1,888	$	1,961	$	1,511

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) for the years ended December 31, 2022, 2021 and 2020 consisted of the following components:

(dollars in millions)	2022		2021		2020
Current:
United States:
Federal	$	68	$	77	$	42
State	43		32		26
Foreign	424		524		438
	535		633		506
Future:
United States:
Federal	(4)		(13)		8
State	(1)		(6)		(8)
Foreign	(11)		(73)		(51)
	(16)		(92)		(51)
Income tax expense	$	519	$	541	$	455
Attributable to items (charged) credited to (deficit) equity	$	(50)	$	(25)	$	(6)

Schedule of Effective Income Tax Rate Reconciliation

Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:

	2022		2021		2020
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes	1.7	%	0.8	%	0.9	%
Tax on international activities	4.6	%	4.7	%	4.4	%
U.S. tax effect of foreign earnings	0.3	%	0.5	%	3.4	%
Other	(0.1)	%	0.6	%	0.4	%
Effective income tax rate	27.5	%	27.6	%	30.1	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables as of December 31, 2022 and 2021 are as follows:

(dollars in millions)	2022		2021
Future income tax benefits:
Insurance and employee benefits	$	104	$	185
Other asset basis differences	125		143
Other liability basis differences	352		320
Tax loss carryforwards	191		200
Tax credit carryforwards	56		46
Valuation allowances	(240)		(247)
	$	588	$	647
Future income taxes payable:
Intangible assets	$	152	$	168
Other assets basis differences	294		284
	$	446	$	452

Summary of Tax Credit Carryforwards

As of December 31, 2022, tax credit carryforwards, principally federal and state, and tax loss carryforwards, principally foreign, were as follows:

(dollars in millions)	Tax Credit Carryforwards		Tax Loss Carryforwards
Expiration period:
2023-2027	$	—	$	48
2028-2032	23		27
2033-2042	3		49
Indefinite	30		659
	$	56	$	783

Schedule of Unrecognized Tax Benefits Roll Forward

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, 2022, 2021 and 2020 is as follows:

(dollars in millions)	2022		2021		2020
Balance at January 1	$	392	$	397	$	379
Additions for tax positions related to the current year	25		23		16
Additions for tax positions of prior years	3		1		41
Reductions for tax positions of prior years	(32)		(22)		(31)
Settlements	(2)		(7)		(8)
Balance at December 31	$	386	$	392	$	397
Gross interest expense related to unrecognized tax benefits	$	2	$	2	$	10
Total accrued interest balance at December 31	$	143	$	152	$	153