Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Components of income tax [Table Text Block]

Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income/(loss), and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows:


	2021			2022			2023
Income/(Loss) before income taxes (in millions)
U.S.	$	10,043		$	(6,548)		$	3,395
Non-U.S.	7,737			3,532			572
Total	$	17,780		$	(3,016)		$	3,967
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	102		$	68		$	62
Non-U.S.	598			781			948
State and local	26			123			229
Total current	726			972			1,239
Deferred
Federal	2,290			(2,292)			(413)
Non-U.S.	(3,254)			688			(1,149)
State and local	108			(232)			(39)
Total deferred	(856)			(1,836)			(1,601)
Total	$	(130)		$	(864)		$	(362)
Reconciliation of effective tax rate
U.S. statutory tax rate	21.0		%	21.0		%	21.0		%
Non-U.S. tax rate differential	1.3			(8.7)			(3.4)
State and local income taxes	0.5			2.3			1.9
General business credits	(2.3)			13.0			(15.9)
Nontaxable foreign currency gains and losses	—			(4.2)			—
Dispositions and restructurings (a)	(18.8)			(7.0)			(14.7)
U.S. tax on non-U.S. earnings	2.4			2.8			7.7
Prior year settlements and claims	(0.3)			1.5			1.2
Tax incentives	(0.6)			2.0			(3.9)
Enacted change in tax laws	1.1			(2.0)			0.1
Valuation allowances	(4.7)			6.2			(0.7)
Other	(0.3)			1.7			(2.4)
Effective tax rate	(0.7)		%	28.6		%	(9.1)		%

__________

(a)2021 includes a benefit of $2.9 billion to recognize deferred tax assets resulting from changes in our global tax structure; 2023 includes benefits of $610 million associated with legal entity restructuring within our leasing operations and China.

Components of deferred tax assets and liabilities [Table Text Block]

The components of deferred tax assets and liabilities at December 31 were as follows (in millions):


	2022		2023
Deferred tax assets
Employee benefit plans	$	1,953	$	2,470
Net operating loss carryforwards	6,809		7,262
Tax credit carryforwards	9,354		8,944
Research expenditures	3,240		3,799
Dealer and dealers’ customer allowances and claims	2,192		2,752
Other foreign deferred tax assets	3,107		3,456
All other	2,201		2,299
Total gross deferred tax assets	28,856		30,982
Less: Valuation allowances	(4,052)		(4,187)
Total net deferred tax assets	24,804		26,795
Deferred tax liabilities
Leasing transactions	2,992		3,253
Depreciation and amortization (excluding leasing transactions)	3,116		3,389
Finance receivables	792		699
Carrying value of investments	487		—
Other foreign deferred tax liabilities	1,110		1,255
All other	2,304		2,219
Total deferred tax liabilities	10,801		10,815
Net deferred tax assets/(liabilities)	$	14,003	$	15,980

Summary of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 were as follows (in millions):


	2022		2023
Beginning balance	$	2,910	$	2,939
Increase – tax positions in prior periods	338		103
Increase – tax positions in current period	17		45
Decrease – tax positions in prior periods	(236)		(79)
Settlements	(2)		(115)
Lapse of statute of limitations	(1)		(33)
Foreign currency translation adjustment	(87)		53
Ending balance	$	2,939	$	2,913