Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes

Schedule of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2022		2021		2020
United States	$	(205)	$	337	$	138
Foreign		782		298		148
Total earnings before income taxes excluding noncontrolling interests		577		635		286
Net earnings attributable to noncontrolling interests		2		1		—
Total earnings before income taxes	$	579	$	636	$	286

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2022		2021		2020
Current:
Federal	$	54	$	35	$	(50)
Foreign		42		33		35
State and local		12		10		2
Deferred:
Federal		(94)		3		26
Foreign		5		(7)		(3)
State and local		(22)		(9)		(7)
Income tax expense (benefit)		(3)		65		3
Unrealized changes in other comprehensive income (loss)		8		8		(3)
Total income taxes	$	5	$	73	$	—

Schedule of reconciliation of computed expected tax expense excluding non-controlling interest to income tax expense (benefit)

	Years ended December 31,
(Millions of dollars)	2022		2021		2020
Computed “expected” tax expense excluding noncontrolling interests	$	121	$	133	$	60
Adjustments to tax expense attributable to:
Foreign tax differences		(60)		(35)		10
Tax-exempt income		(17)		(15)		(17)
Foreign entity repatriation		10		—		—
Federal tax credits		(57)		(39)		(34)
Unrecognized tax benefits		7		14		—
Valuation allowance		(7)		6		(14)
Other		—		1		(2)
Total income tax expense (benefit)	$	(3)	$	65	$	3

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2022		2021
Deferred income tax liabilities:
Depreciation	$	106	$	121
Domestic partnerships		59		62
Unrealized gain on investments		—		13
Inventory		14		7
Foreign basis difference		13		—
Other		2		4
Gross deferred income tax liabilities	$	194	$	207
Deferred income tax assets:
Reserves/accruals	$	68	$	66
Sec. 174 capitalization		75		—
Unrealized loss on investments		40		—
Deferred earnings of foreign subsidiaries		3		—
Net operating and capital loss carry-forwards		28		67
Tax credit carry-forwards		22		32
Other		8		5
Gross deferred income tax assets before valuation allowance		244		170
Less: Valuation allowance		33		60
Net deferred income tax liability (asset)	$	(17)	$	97

Schedule of activity within the valuation allowance account

	Balance at		Charge (credit)	Balance at
(Millions of dollars)	beginning of year		to expense	end of year
Allowance for Deferred Tax Assets:
Year Ended December 31, 2022	$	60	(27)	$	33
Year Ended December 31, 2021	$	55	5	$	60
Year Ended December 31, 2020	$	68	(13)	$	55

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

(Millions of dollars)	2022		2021
Beginning balance at January 1	$	41	$	30
Additions for uncertain tax positions of prior years		1		7
Decreases for uncertain tax positions of prior years		(4)		(1)
Additions for uncertain tax positions of current year		23		6
Lapse of statute of limitations		(10)		(1)
Ending balance as of December 31	$	51	$	41