INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income Taxes by Geographical Area

Earnings before income taxes by geographical area consisted of the following (in millions of dollars):

	For the Years Ended December 31,
	2023		2022		2021
U.S.	$	2,211	$	1,903	$	1,267
Foreign	289		243		218
Total	$	2,500	$	2,146	$	1,485

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense consisted of the following (in millions of dollars):

	For the Years Ended December 31,
	2023		2022		2021
Current income tax expense:
U.S. Federal	$	431	$	374	$	221
U.S. State	100		77		46
Foreign	81		78		81
Total current	612		529		348
Deferred income tax (benefit) expense	(15)		4		23
Total income tax expense	$	597	$	533	$	371

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2023 and 2022 were as follows (in millions of dollars):

	As of December 31,
	2023		2022
Deferred tax assets:
Accrued expenses	177		150
U.S. and foreign loss carryforwards	84		62
Accrued employment-related benefits	51		51
Tax credit carryforward	22		26
Other	30		23
Deferred tax assets	364		312
Less valuation allowance	(93)		(71)
Deferred tax assets – net of valuation allowance	$	271	$	241
Deferred tax liabilities:
Property, buildings, equipment and other capital assets	(238)		(212)
Intangibles	(58)		(64)
Inventory	(11)		(18)
Other	(11)		(11)
Deferred tax liabilities	(318)		(305)
Net deferred tax liability	$	(47)	$	(64)
The net deferred tax asset (liability) is classified as follows:
Noncurrent assets	$	10	$	12
Noncurrent liabilities (foreign)	(57)		(76)
Net deferred tax liability	$	(47)	$	(64)

Summary of Valuation Allowance Changes

The Company's valuation allowance changed as follows (in millions of dollars):

	For the Years Ended December 31,
	2023		2022
Balance at beginning of period	$	(71)	$	(70)
Increases primarily related to foreign NOLs	(5)		(10)
Releases primarily related to foreign NOLs	1		1
Foreign exchange rate changes	(2)		4
Increase related to U.S. foreign tax credits	3		1
Increase related to capital loss carryforwards	(19)		—
Other changes – net	—		3
Balance at end of period	$	(93)	$	(71)

Reconciliation of Income Tax Statutory Rate

A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):

	For the Years Ended December 31,
	2023			2022			2021
Federal income tax	$	525		$	451		$	312
State income taxes – net of federal income tax benefit	74			64			41
Stock compensation	(16)			(5)			(8)
Foreign rate difference	31			26			26
Change in valuation allowance(1)	6			7			7
Other – net	(23)			(10)			(7)
Income tax expense	$	597		$	533		$	371
Effective tax rate	23.9		%	24.8		%	25.0		%
(1) Net of changes in related tax attributes.

Reconciliation of Income Tax Contingencies

The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):

	For the Years Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	41	$	38	$	39
Additions for tax positions related to the current year	6		4		3
Additions for tax positions of prior years	1		2		—
Reductions for tax positions of prior years	(1)		—		(1)
Reductions due to statute lapse	(3)		(2)		(3)
Settlements, audit payments, refunds – net	(2)		(1)		—
Balance at end of year	$	42	$	41	$	38