Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of taxes on income

For financial reporting purposes, income before income taxes includes the following components: 

For the Years Ended December 31,
(In millions)	2022		2021		2020
Income before income taxes:
U.S.	$	1,468	$	1,590	$	1,075
Other	2,614		2,618		1,718
	$	4,082	$	4,208	$	2,793
The expense (benefit) for income taxes is comprised of:
Current –
U.S. Federal	$	262	$	251	$	172
Other national governments	653		714		456
U.S. state and local	123		132		79
	1,038		1,097		707
Deferred –
U.S. Federal	38		(40)		40
Other national governments	(91)		(12)		(14)
U.S. state and local	10		(11)		14
	(43)		(63)		40
Total income taxes	$	995	$	1,034	$	747

Schedule of deferred income tax assets and liabilities

The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:

December 31,
(In millions)	2022		2021
Deferred tax assets:
Accrued expenses not currently deductible (a)	$	670	$	647
Differences related to non-U.S. operations (b)	275		293
Accrued U.S. retirement benefits	172		293
Net operating losses (c)	285		183
Income currently recognized for tax	34		29
Other	25		32
	$	1,461	$	1,477

Deferred tax liabilities:
Differences related to non-U.S. operations	$	543	$	624
Depreciation and amortization	510		506
Accrued retirement & postretirement benefits - non-U.S. operations	408		403
Capitalized expenses currently recognized for tax	107		98
Other	57		32
	$	1,625	$	1,663

(a) Net of valuation allowances of $5 million in 2022 and $2 million in 2021.

(b) Net of valuation allowances of $160 million in 2022 and $144 million in 2021.

(c) Net of valuation allowances of $69 million in 2022 and $88 million in 2021.

December 31,
(In millions)	2022		2021
Balance sheet classifications:
Deferred tax assets	$	358	$	551
Other liabilities	$	522	$	737

Schedule of u.s. federal statutory income tax rate

A reconciliation from the U.S. federal statutory income tax rate to the Company’s effective income tax rate is shown below:

For the Years Ended December 31,	2022		2021		2020
U.S. Federal statutory rate	21.0	%	21.0	%	21.0	%
U.S. state and local income taxes—net of U.S. Federal income tax benefit	2.7		2.3		2.5
Differences related to non-U.S. operations	0.7		0.1		2.3
U.K. statutory rate change	—		2.6		—
Gain on consolidation of business	—		(1.5)		—
Equity compensation	(0.7)		(0.7)		(1.4)
Uncertain tax positions	0.1		0.1		1.1
Other	0.6		0.7		1.2
Effective tax rate	24.4	%	24.6	%	26.7	%

Schedule of unrecognized tax benefits

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020:

(In millions)	2022		2021		2020
Balance at January 1,	$	94	$	98	$	86
Additions, based on tax positions related to current year	1		2		9
Additions for tax positions of prior years	15		11		25
Reductions for tax positions of prior years	(2)		(1)		(9)
Settlements	(2)		(1)		(4)
Lapses in statutes of limitations	(9)		(15)		(9)
Balance at December 31,	$	97	$	94	$	98

Schedule of status of audits for significant jurisdictions outside of the united states

The status of audits for significant jurisdictions outside the U.S. are summarized in the table below:

Tax Audit (Years)
Jurisdiction:	Initiated in 2022	Ongoing	Concluded
France			2017, 2018 during 2022
Germany		2013-2016	2017-2018 during 2022
Hong Kong			2019 during 2022
Italy		2015-2016	2017 during 2022
Singapore	2018-2021	2017-2021	2018-2020 during 2022
United Kingdom	2020	2016-2020