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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax Domestic and Foreign The sources of income from continuing operations before income taxes are:
(dollars in millions)202320222021
United States(1)
$938 $4,151 $3,676 
Foreign2,898 1,966 1,433 
Income from continuing operations before income taxes$3,836 $6,117 $5,109 
(1)    2023 includes the impacts of the Powder Metal Matter.
Schedule of Components of Income Tax Expense (Benefit) The income tax expense (benefit) for the years ended December 31 are as follows:
(dollars in millions)202320222021
Current:
United States:
Federal$213 $1,724 $387 
State70 216 238 
Foreign575 513 427 
858 2,453 1,052 
Future:
United States:
Federal(411)(1,399)(26)
State(53)(166)41 
Foreign62 (98)(103)
 (402)(1,663)(88)
Income tax expense$456 $790 $964 
Schedule of Effective Income Tax Rate Reconciliation Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
202320222021
(dollars in millions)AmountRateAmountRateAmountRate
Statutory U.S. federal income tax rate$805 21.0 %$1,285 21.0 %$1,073 21.0 %
Tax on international activities(27)(0.7)(186)(3.1)(204)(4.0)
Tax charges related to separation of Carrier and Otis and Raytheon merger  — — (39)(0.8)
Disposals of businesses  — — 108 2.2 
U.S. research and development credit(168)(4.4)(164)(2.7)(172)(3.4)
U.S. federal statute lapse(59)(1.5)— — — — 
State income tax, net17 0.4 59 1.0 174 3.4 
Foreign Derived Intangible Income (FDII)(142)(3.7)(214)(3.5)(121)(2.4)
U.K. corporate tax rate enactment  — — 73 1.5 
Other30 0.8 10 0.2 72 1.4 
Effective income tax rate$456 11.9 %$790 12.9 %$964 18.9 %
Schedule of Deferred Tax Assets and Liabilities The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2023 and 2022 are as follows:
(dollars in millions)20232022
Future income tax benefits:
Insurance and employee benefits$994 $1,126 
Inventory and contract balances571 639 
Warranty provisions240 242 
Capitalization of research and experimental expenditures1,631 1,712 
Other basis differences779 828 
Powder Metal Matter644  
Tax loss carryforwards905 305 
Tax credit carryforwards891 970 
Valuation allowances(1,465)(842)
Total future income tax benefits$5,190 $4,980 
Future income taxes payable:
Goodwill and Intangible assets$6,228 $6,588 
Fixed assets1,739 1,751 
Other basis differences238 220 
Total future income tax payable$8,205 $8,559 
Summary Of Tax Credit Carryforwards At December 31, 2023, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
(dollars in millions)Tax Credit CarryforwardsTax Loss Carryforwards
Expiration period:
2024-2028$56 $317 
2029-203336 180 
2034-2043299 832 
Indefinite500 3,272 
Total$891 $4,601 
Summary Of Income Tax Contingencies A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021 is as follows: 
(dollars in millions)202320222021
Balance at January 1$1,515 $1,458 $1,225 
Additions for tax positions related to the current year89 106 110 
Additions for tax positions of prior years5 23 282 
Reductions for tax positions of prior years(141)(56)(49)
Settlements(26)(16)(110)
Balance at December 31$1,442 $1,515 $1,458 
Gross interest expense related to unrecognized tax benefits$62 $34 $39 
Total accrued interest balance at December 31233 190 165 
Summary of Valuation Allowance
Changes to valuation allowances consisted of the following:
(dollars in millions)202320222021
Balance at January 1$842 $825 $757 
Additions charged to income tax expense170 54 136 
Reductions credited to goodwill, due to acquisitions — (19)
Reductions credited to income tax expense(58)(82)(37)
Other adjustments (1)
511 45 (12)
Balance at December 31$1,465 $842 $825 
(1)     2023 includes the addition of the indefinite-lived tax loss carryforwards now disclosed in connection with OECD Pillar Two.