Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes

Schedule of earnings before income taxes

	Years ended December 31,
(Millions of dollars)	2023		2022		2021
United States	$	(403)	$	(205)	$	337
Foreign		509		782		298
Total earnings before income taxes excluding noncontrolling interests		106		577		635
Net earnings attributable to noncontrolling interests		1		2		1
Total earnings before income taxes	$	107	$	579	$	636

Schedule of components of total income taxes

	Years ended December 31,
(Millions of dollars)	2023		2022		2021
Current:
Federal	$	(36)	$	54	$	35
Foreign		65		42		33
State and local		5		12		10
Deferred:
Federal		(118)		(94)		3
Foreign		(1)		5		(7)
State and local		(35)		(22)		(9)
Income tax expense (benefit)		(120)		(3)		65
Unrealized changes in other comprehensive income		4		8		8
Total income taxes	$	(116)	$	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)	2023		2022		2021
Computed “expected” tax expense excluding noncontrolling interests	$	22	$	121	$	133
Adjustments to tax expense attributable to:
Foreign tax differences		(26)		(60)		(35)
Tax-exempt income		(22)		(17)		(15)
State income taxes, net of federal benefit		(28)		—		—
Foreign entity repatriation		—		10		—
Federal tax credits		(67)		(57)		(39)
Unrecognized tax benefits		(1)		7		14
Valuation allowance		(3)		(7)		6
IRS audit settlement		6		—		—
Other		(1)		—		1
Total income tax expense (benefit)	$	(120)	$	(3)	$	65

Schedule of components of the net deferred income tax liability

	December 31,
(Millions of dollars)	2023		2022
Deferred income tax assets:
Reserves/accruals	$	80	$	68
Research and development capitalization		172		75
Unrealized loss on investments		21		40
Deferred earnings of foreign subsidiaries		3		3
Net operating and capital loss carry-forwards		18		28
Tax credit carry-forwards		95		22
Other		10		8
Gross deferred income tax assets before valuation allowance		399		244
Less: Valuation allowance		30		33
Total deferred income tax assets, net of valuation allowance	$	369	$	211
Deferred income tax liabilities:
Property, plant and equipment	$	139	$	106
Domestic partnerships		62		59
Inventory		—		14
Foreign basis difference		—		13
Other		1		2
Gross deferred income tax liabilities		202		194
Net deferred income tax asset	$	167	$	17

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, 2023	$	33	(3)	$	30
Year Ended December 31, 2022	$	60	(27)	$	33
Year Ended December 31, 2021	$	55	5	$	60

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

(Millions of dollars)	2023		2022
Beginning balance at January 1	$	51	$	41
Additions for uncertain tax positions of prior years		2		1
Decreases for uncertain tax positions of prior years		(14)		(4)
Additions for uncertain tax positions of current year		18		23
Decreases related to audit settlements with taxing authorities		(6)		—
Lapse of statute of limitations		(2)		(10)
Ending balance as of December 31	$	49	$	51