INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

The income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 consists of the following (in millions):


	2024		2023		2022
Current:
U.S. Federal	$	1,093	$	1,012	$	2,006
U.S. State and Local	172		195		273
Non-U.S.	410		459		467
Total Current	1,675		1,666		2,746
Deferred:
U.S. Federal	38		150		296
U.S. State and Local	(30)		20		136
Non-U.S.	(23)		29		99
Total Deferred	(15)		199		531
Total Income Tax Expense	$	1,660	$	1,865	$	3,277

Income Before Income Taxes

Income before income taxes includes the following components (in millions):


	2024		2023		2022
United States	$	5,839	$	6,246	$	12,276
Non-U.S.	1,603		2,327		2,549
Total Income Before Income Taxes	$	7,442	$	8,573	$	14,825

Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended 2024, 2023 and 2022 consists of the following:


	2024		2023		2022
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
U.S. state and local income taxes (net of federal benefit)	1.8		1.9		2.0
Non-U.S. tax rate differential	—		(0.6)		0.1
FDII and GILTI, net(1)	(1.2)		(0.9)		(0.7)
U.S. federal tax credits	(0.8)		(0.7)		(0.5)
Goodwill and other asset impairments	—		0.1		—
Net uncertain tax positions	0.2		(0.5)		0.4
Other	1.3		1.5		(0.2)
Effective income tax rate	22.3	%	21.8	%	22.1	%

(1) Foreign-Derived Intangible Income ("FDII") and Global Intangible Low-Taxed Income ("GILTI")

Deferred Tax Liabilities and Assets

Deferred income tax assets and liabilities are comprised of the following as of December 31, 2024 and 2023 (in millions):


	2024		2023
Fixed assets and capitalized software	$	(5,914)	$	(5,974)

Operating lease right-of-use assets	(943)		(1,017)
Other	(612)		(605)
Deferred tax liabilities	(7,469)		(7,596)

Pension and postretirement benefits	1,474		1,304
Loss and credit carryforwards	308		232
Insurance reserves	646		626


Accrued employee compensation	352		354
Operating lease liabilities	1,021		1,073
Other	367		480
Deferred tax assets	4,168		4,069
Deferred tax assets valuation allowance	(182)		(119)
Deferred tax asset (net of valuation allowance)	3,986		3,950

Net deferred tax asset (liability)	$	(3,483)	$	(3,646)

Amounts recognized in our consolidated balance sheets:


Deferred tax assets	$	112	$	126
Deferred tax liabilities	(3,595)		(3,772)
Net deferred tax asset (liability)	$	(3,483)	$	(3,646)

U.S. State and Local Operating Loss and Credit Carryforwards

Further, we have U.S. state and local operating loss and credit carryforwards as follows (in millions):


	2024		2023
U.S. state and local operating loss carryforwards	$	1,043	$	762
U.S. state and local credit carryforwards	$	47	$	48

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to our uncertain tax positions (in millions):


	Tax		Interest		Penalties
Balance as of January 1, 2022	$	480	$	78	$	2
Additions for tax positions of the current year	56		—		—
Additions for tax positions of prior years	25		30		2
Reductions for tax positions of prior years for:
Changes based on facts and circumstances	(9)		(1)		—
Settlements during the period	(10)		(1)		—
Lapses of applicable statute of limitations	(9)		(2)		—
Balance as of December 31, 2022	533		104		4
Additions for tax positions of the current year	26		—		—
Additions for tax positions of prior years	147		37		1
Reductions for tax positions of prior years for:
Changes based on facts and circumstances	(164)		(24)		(1)
Settlements during the period	(47)		(9)		—
Lapses of applicable statute of limitations	(3)		—		—
Balance as of December 31, 2023	492		108		4
Additions for tax positions of the current year	33		—		—
Additions for tax positions of prior years	52		33		—
Reductions for tax positions of prior years for:
Changes based on facts and circumstances	(81)		(11)		(1)
Settlements during the period	(33)		(5)		—
Lapses of applicable statute of limitations	(16)		(3)		—
Balance as of December 31, 2024	$	447	$	122	$	3