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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Geographic Allocation of Income and Provision for Income Taxes
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes For the Year Ended December 31,
(In millions)202320222021
Income (loss) from continuing operations before income taxes
Domestic$(414)$(1)$941 
Foreign1,507 1,427 1,405 
Income (loss) from continuing operations before income taxes$1,093 $1,426 $2,346 
Current tax expense (benefit)
Federal$143 $65 $(13)
State and local40 21 6 
Foreign407 403 329 
Total current tax expense (benefit)$590 $489 $322 
Deferred tax expense (benefit)
Federal$(326)$(170)$164 
State and local(50)(39)55 
Foreign(62)(70)(17)
Total deferred tax expense (benefit)$(438)$(279)$202 
Provision for (benefit from) income taxes on continuing operations152 210 524 
Net income (loss) from continuing operations after taxes$941 $1,216 $1,822 
Reconciliation to US Statutory Rate
Reconciliation to U.S. Statutory RateFor the Year Ended December 31,
202320222021
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
Effective tax rates on international operations - net1
(1.8)(3.5)(2.5)
Acquisitions, divestitures and ownership restructuring activities2
3.6 (5.4)(0.1)
U.S. research and development credit(5.9)(2.2)(2.4)
Exchange gains/losses3
2.0 3.7 1.9 
State and local incomes taxes - net0.9 0.3 2.1 
Impact of Swiss Tax Changes4
(7.9)— 0.2 
Excess tax benefits/deficiencies from stock compensation(0.5)(0.7)(0.2)
Tax settlements and expiration of statute of limitations(0.3)0.1 — 
Repatriation of foreign earnings5
2.9 1.7 1.0 
Other – net(0.1)(0.3)1.3 
Effective tax rate on income from continuing operations13.9 %14.7 %22.3 %
1.    Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results. Includes a tax benefit of $(36) million for the year ended December 31, 2022, relating to the release of a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil.
2.     Includes net tax charge of $46 million for the year ended December 31, 2023, associated with intellectual property realignment. Includes net tax benefits of $(55) million and $(42) million for the year ended December 31, 2022, related to deferred tax assets established upon change in a U.S. entity's tax characterization, and a worthless stock deduction on Company's investment in a subsidiary after a change in the entity's legal structure, respectively.
3.    Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 7 - Supplementary Information, and Note 20 - Financial Instruments, under the heading Foreign Currency Risk.
4. Includes net tax benefits of $(62) million and $(24) million for the year ended December 31, 2023, related to changes in deferred taxes and a tax currency change, respectively.
5. Includes the effect of withholding tax on distribution of foreign earnings to the U.S., net of U.S. foreign tax credits.
Deferred Tax Balances
Deferred Tax Balances at December 31,20232022
(In millions)AssetsLiabilitiesAssetsLiabilities
Property$— $353 $— $447 
Operating loss and tax credit carryforwards1
539 — 363 — 
Accrued employee benefits703 — 680 — 
Other accruals and reserves603 — 545 — 
Intangibles— 2,153 — 2,106 
Inventory193 — 198 — 
Research and development capitalization607 — 418 — 
Investments39 — 40 — 
Unrealized exchange gains/losses— 38 — 29 
Other – net55 — 40 — 
Subtotal$2,739 $2,544 $2,284 $2,582 
Valuation allowances2
(510)— (342)— 
Total$2,229 $2,544 $1,942 $2,582 
Net Deferred Tax Asset (Liability)$(315)$(640)
1.    Primarily related to tax loss and credit carryforwards from operations in the United States, Switzerland, and Spain.
2.    During the year ended December 31, 2023, the company adjusted the valuation allowances recorded against the net deferred tax asset position of various legal entities, the largest of which relates to legal entities in Switzerland and Argentina.
Operating Loss and Tax Credit Carryforwards
Operating Loss and Tax Credit CarryforwardsDeferred Tax Asset
(In millions)20232022
Operating loss carryforwards
Expire within 5 years$103 $127 
Expire after 5 years or indefinite expiration303 158 
Total operating loss carryforwards$406 $285 
Tax credit carryforwards
Expire within 5 years$59 $15 
Expire after 5 years or indefinite expiration74 63 
Total tax credit carryforwards$133 $78 
Total Operating Loss and Tax Credit Carryforwards$539 $363 
Total Gross Unrecognized Tax Benefits
Total Gross Unrecognized Tax BenefitsFor the Year Ended December 31,
(In millions)202320222021
Total unrecognized tax benefits as of beginning of period$357 $377 $395 
Decreases related to positions taken on items from prior years— (3)(7)
Increases related to positions taken on items from prior years23 4 13 
Increases related to positions taken in the current year16 11 9 
Settlement of uncertain tax positions with tax authorities(4)(24)(17)
Decreases due to expiration of statutes of limitations(2)(5)(16)
Exchange (gain) loss— (3)— 
Total unrecognized tax benefits as of end of period$390 $357 $377 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$173 $139 $157 
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations$1 $1 $1 
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period$11 $13 $11 
Tax Year Subject to Examination
Tax Years Subject to Examination by Major Tax Jurisdiction at December 31, 2023Earliest Open Year
Jurisdiction
Argentina2017
Brazil2018
Canada2016
China2014
France2021
India2022
Italy2017
Switzerland2018
United States:
Federal income tax2012
State and local income tax2012