XML 50 R37.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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


For the Years Ended December 31,
(In millions)	2023		2022		2021
Income before income taxes:
U.S.	$	1,823	$	1,468	$	1,590
Other	3,203		2,614		2,618
	$	5,026	$	4,082	$	4,208

The expense (benefit) for income taxes is comprised of:

Current –
U.S. Federal	$	273	$	262	$	251
Other national governments	838		653		714
U.S. state and local	142		123		132
	1,253		1,038		1,097
Deferred –
U.S. Federal	29		38		(40)
Other national governments	(73)		(91)		(12)
U.S. state and local	15		10		(11)
	(29)		(43)		(63)
Total income taxes	$	1,224	$	995	$	1,034

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


December 31,
(In millions)	2023		2022
Deferred tax assets:
Accrued expenses not currently deductible (a)	$	679	$	670
Differences related to non-U.S. operations (b)	299		275

Accrued U.S. retirement benefits	134		172
Net operating losses (c)	297		285
Income currently recognized for tax	48		34

Other	32		25
	$	1,489	$	1,461


Deferred tax liabilities:

Differences related to non-U.S. operations	$	586	$	543
Depreciation and amortization	527		510
Accrued retirement & post-retirement benefits – non-U.S. operations	404		408
Capitalized expenses currently recognized for tax	120		107
Other	38		57
	$	1,675	$	1,625

(a) Net of valuation allowances of $3 million in 2023 and $5 million in 2022.

(b) Net of valuation allowances of $53 million in 2023 and $160 million in 2022.


December 31,
(In millions)	2023		2022
Balance sheet classifications:



Deferred tax assets	$	357	$	358
Other liabilities	$	543	$	522

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


For the Years Ended December 31,	2023		2022		2021
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	2.6		2.7		2.3
Differences related to non-U.S. operations	2.2		0.8		0.1
Change in valuation allowance	(1.4)		(0.1)		—
U.K. statutory rate change	—		—		2.6
Gain on consolidation of business	—		—		(1.5)
Equity compensation	(0.7)		(0.7)		(0.7)
Uncertain tax positions	(0.1)		0.1		0.1
Other	0.7		0.6		0.7
Effective tax rate	24.3	%	24.4	%	24.6	%

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021:


(In millions)	2023		2022		2021
Balance at January 1,	$	97	$	94	$	98
Additions, based on tax positions related to current year	6		1		2
Additions for tax positions of prior years	44		15		11
Reductions for tax positions of prior years	(8)		(2)		(1)

Settlements	(8)		(2)		(1)
Lapses in statutes of limitations	(7)		(9)		(15)
Balance at December 31,	$	124	$	97	$	94

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