INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income before Income Tax, Domestic and Foreign


Geographic Allocation of Income and Provision (Credit) for Income Taxes
In millions	2023		2022		2021
Income (loss) before income taxes
Domestic	$	(602)	$	2,383	$	1,523
Foreign	1,258		3,707		6,622
Income before income taxes	$	656	$	6,090	$	8,145
Current tax expense (benefit)
Federal	$	249	$	434	$	(46)
State and local	18		82		48
Foreign	951		855		1,460
Total current tax expense	$	1,218	$	1,371	$	1,462
Deferred tax expense (benefit)
Federal	$	(445)	$	63	$	130
State and local	3		1		26
Foreign	(780)		15		122
Total deferred tax expense (benefit)	$	(1,222)	$	79	$	278
Provision (credit) for income taxes	$	(4)	$	1,450	$	1,740
Net income	$	660	$	4,640	$	6,405

Schedule of Effective Income Tax Rate Reconciliation


Reconciliation to U.S. Statutory Rate	2023		2022		2021
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Equity earnings effect	4.2		(1.2)		(2.2)
Foreign income taxed at rates other than the statutory U.S. federal income tax rate	8.3		(1.4)		(1.3)
U.S. tax effect of foreign earnings and dividends	(13.0)		1.2		1.7
Unrecognized tax benefits	33.1		1.3		4.7

Changes in valuation allowances	18.8		(2.8)		2.6
Federal tax accrual adjustment	(21.2)		0.6		(5.3)
State and local income taxes	3.0		2.8		0.2

Change in tax basis in foreign assets 1	(56.0)		—		—

Other - net	1.2		2.3		—
Effective tax rate	(0.6)	%	23.8	%	21.4	%

1.The 2023 impact primarily represents the initial recognition of tax basis in intangible assets in foreign jurisdictions and the related valuation allowance.

Schedule of Deferred Tax Assets and Liabilities


Deferred Tax Balances at Dec 31	2023				2022
In millions	Assets		Liabilities		Assets		Liabilities
Property	$	404	$	2,663	$	505	$	3,001
Tax loss and credit carryforwards	1,754		—		1,472		—
Postretirement benefit obligations	983		196		749		239
Other accruals and reserves	1,923		521		1,497		279
Intangibles 1	2,090		331		36		415
Inventory	114		272		129		278

Investments	166		34		116		41

Other – net	733		115		999		131
Subtotal	$	8,167	$	4,132	$	5,503	$	4,384
Valuation allowances 1	(2,948)		—		(1,269)		—
Total	$	5,219	$	4,132	$	4,234	$	4,384

1.The change in 2023 primarily represents the initial recognition of tax basis in intangible assets in foreign jurisdictions and the related valuation allowance.

Summary of Operating Loss Carryforwards


Operating Loss and Tax Credit Carryforwards at Dec 31	2023		2022
In millions	Assets		Assets
Operating loss carryforwards
Expire within 5 years	$	213	$	158
Expire after 5 years or indefinite expiration	727		752
Total operating loss carryforwards	$	940	$	910
Tax credit carryforwards
Expire within 5 years	$	80	$	77
Expire after 5 years or indefinite expiration	317		96
Total tax credit carryforwards	$	397	$	173
Capital loss carryforwards
Expire within 5 years	$	417	$	389
Total tax loss and tax credit carryforwards	$	1,754	$	1,472

Schedule of Total Gross Unrecognized Tax Benefits

The following table provides a reconciliation of the Company's unrecognized tax benefits:


Total Gross Unrecognized Tax Benefits
In millions	2023		2022		2021
Total unrecognized tax benefits at Jan 1	$	520	$	580	$	373
Decreases related to positions taken on items from prior years	(58)		(47)		(3)
Increases related to positions taken on items from prior years	89		53		187
Increases related to positions taken in the current year	77		46		44
Settlement of uncertain tax positions with tax authorities	(109)		(111)		(18)
Decreases due to expiration of statutes of limitations	(11)		—		(1)
Foreign exchange loss (gain)	5		(1)		(2)
Total unrecognized tax benefits at Dec 31	$	513	$	520	$	580
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	513	$	520	$	501
Total amount of interest and penalties expense (benefit) recognized in "Provision for income taxes"	$	126	$	(27)	$	359
Total accrual for interest and penalties recognized in the consolidated balance sheets	$	561	$	498	$	502