INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Before Income Tax Expense by Category

years ended December 31 (in millions)	2021		2020		2019
United States	$	(424)	$	(329)	$	(586)
International	1,901		1,621		1,556
Income before income taxes	$	1,477	$	1,292	$	970

Income Tax Expense

years ended December 31 (in millions)	2021		2020		2019
Current
United States
Federal	$	(11)	$	7	$	8
State and local	10		(7)		3
International	329		270		258
Current income tax expense	328		270		269
Deferred
United States
Federal	(103)		(99)		(140)
State and local	(8)		5		(29)
International	(35)		6		(141)
Deferred income tax expense (benefit)	(146)		(88)		(310)
Income tax expense (benefit)	$	182	$	182	$	(41)

Deferred Tax Assets and Liabilities

as of December 31 (in millions)	2021		2020
Deferred tax assets
Accrued liabilities and other	$	434	$	376
Pension and other postretirement benefits	174		218
Tax credit and net operating loss carryforwards	939		905
Swiss tax reform net asset basis step-up	161		174
Operating lease liabilities	155		148
Valuation allowances	(401)		(454)
Total deferred tax assets	1,462		1,367
Deferred tax liabilities
Subsidiaries’ unremitted earnings	66		77
Long-lived assets and other	1,831		539
Operating lease right-of-use assets	151		146
Total deferred tax liabilities	2,048		762
Net deferred tax asset (liability)	$	(586)	$	605

Income Tax Expense (Benefit) Reconciliation

Income Tax Expense (Benefit) Reconciliation

years ended December 31 (in millions)	2021		2020		2019
Income tax expense at U.S. statutory rate	$	310	$	271	$	204
Tax incentives	(193)		(169)		(140)
State and local taxes, net of federal benefit	10		(2)		(17)
Impact of foreign taxes	103		88		65
Tax-deductible foreign statutory loss on an investment in a foreign subsidiary	(58)		—		—
Unfavorable court decision in a foreign jurisdiction related to an uncertain tax position	22		—		—
Swiss tax reform net asset basis step-up	—		—		(159)
Deferred tax revaluation due to 2017 Tax Act and foreign tax reform	—		—		(19)
Transition tax due to 2017 Tax Act	—		—		(16)
Valuation allowances	(61)		8		110
Stock compensation windfall tax benefits	(13)		(27)		(54)
Research and development tax credits	(5)		(7)		(13)
Unutilized foreign tax credits	14		15		5
Other, net	53		5		(7)
Income tax expense (benefit)	$	182	$	182	$	(41)

W

Reconciliation of Unrecognized Tax Benefits

The following table is a reconciliation of our unrecognized tax benefits, including those related to discontinued operations, for the years ended December 31, 2021, 2020 and 2019. 

as of and for the years ended (in millions)	2021		2020		2019
Balance at beginning of the year	$	90	$	111	$	127
Increase due to acquisition	11		—		—
Increase associated with tax positions taken during the current year	31		8		8
Increase (decrease) associated with tax positions taken during a prior year	(3)		(1)		(3)
Settlements	(2)		(18)		(20)
Decrease associated with lapses in statutes of limitations	(16)		(10)		(1)
Balance at end of the year	$	111	$	90	$	111