Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Income Tax Disclosure [Abstract]

Components of Earnings Before Income Taxes Between Domestic and Foreign Jurisdictions

The components of Earnings/(loss) before income taxes were:

Years ended December 31,	2025	2024	2023
U.S.	($3,492)	($12,813)	($2,512)
Non-U.S.	6,127	603	507
Total	$2,635	($12,210)	($2,005)

Schedule of Income Tax Expense/(Benefit)

Income tax (benefit)/expense consisted of the following:

Years ended December 31,	2025	2024	2023
Current tax expense/(benefit)
U.S. federal	$2	($277)	$9
Non-U.S.	287	184	179
U.S. state	9	14	19
Total current	298	(79)	207
Deferred tax expense/(benefit)
U.S. federal	40	(71)	6
Non-U.S.	(25)	3	5
U.S. state	84	(234)	19
Total deferred	99	(302)	30
Total income tax expense/(benefit)	$397	($381)	$237

Schedule of Cash Flow, Supplemental Disclosures

Net income tax payments in 2025 were as follows:

Year ended December 31,	2025
U.S. federal	$37
U.S. state	(5)
Non-U.S.
Germany	83
Other	160
Total Non-U.S.	243
Total net income tax payments	$275

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the U.S. federal statutory tax to actual income tax expense:

Year ended December 31,	2025
	Amount	Rate
U.S. federal statutory tax	$553	21.0	%
State and local income tax, net of federal income tax effect (1)	73	2.8
Foreign tax effects
Germany - Digital Aviation Solutions Divestiture (2)	(751)	(28.5)
Sweden - Digital Aviation Solutions Divestiture (2)	(393)	(14.9)
Other foreign	121	4.6
Effect of cross-border tax laws - Global Intangible Low-Taxed Income - Digital Aviation Solutions Divestiture (3)	1,242	47.1
Tax Credits - Research and development credits	(559)	(21.2)
Changes in valuation allowances (4)	(50)	(1.9)
Nontaxable or nondeductible items
Non-prosecution agreement liability	93	3.5
Digital Aviation Solutions Divestiture	(61)	(2.3)
Changes in prior year worldwide unrecognized tax benefits	69	2.6
Other provision adjustments	60	2.3
Income tax expense	$397	15.1	%

(1)    During the year ended December 31, 2025, the tax effect in this category was primarily driven by state taxes in California (greater than 50 percent).

(2)    We recorded a tax expense of $59 in the foreign jurisdictions related to the Digital Aviation Solutions Divestiture. The German Digital Aviation Solutions Divestiture rate benefit was due to the statutory rate difference of ($203) (7.7)% and a participation exemption of ($548) (20.8)%. The Swedish rate benefit was entirely due to a participation exemption.

(3)    Related to the Digital Aviation Solutions Divestiture, in the U.S., we recorded a Global Intangible Low-Taxed Income inclusion, which is offset by a decrease in the federal valuation allowance, resulting in no federal tax expense.

(4)    The worldwide valuation allowance recorded in tax expense was $120 with $50 federal tax benefit shown on this line, $161 state tax expense included in State and Local Tax line item, and $9 foreign tax expense included in Foreign Tax Effects.

Years ended December 31,	2024			2023
	Amount	Rate		Amount	Rate
U.S. federal statutory tax	($2,564)	21.0	%	($421)	21.0	%
Valuation allowance	3,145	(25.8)		1,150	(57.3)
Federal audit settlement(1)	(490)	4.0
Research and development credits	(409)	3.3		(472)	23.6
State income tax provision, net of effects on U.S. federal tax	(223)	1.8		(75)	3.7
Tax on non-U.S. activities	113	(0.9)		35	(1.8)
Impact of subsidiary shares purchased from noncontrolling interests				(29)	1.5
Other provision adjustments	47	(0.3)		49	(2.5)
Income tax (benefit)/expense	($381)	3.1	%	$237	(11.8)	%

(1)     In the second quarter of 2024, we recorded a tax benefit of $490 related to the settlement of the 2018-2020 federal tax audit, which excludes an associated $155 valuation expense that is recorded in the Valuation allowance line.

Significant Components of Deferred Tax Assets Net of Deferred Tax Liabilities

Significant components of our deferred tax assets/(liabilities) at December 31 were as follows:

	2025	2024
Federal net operating loss, credit, interest and other carryovers(1)	$9,569	$4,719
Inventory and long-term contract methods of income recognition	(5,584)	(4,765)
State net operating loss, credit, interest and other carryovers(2)	2,035	1,353
Fixed assets, intangibles and goodwill	(1,847)	(1,526)
Accrued expenses and reserves	1,512	1,029
Other employee benefits	1,313	1,049
Pension benefits	880	1,045
International net operating loss, credit and capital loss carryovers	598	70
Other postretirement benefit obligations	562	587
Research Expenditures	278	3,936
Other	329	403
Gross deferred tax assets before valuation allowance	9,645	7,900
Valuation allowance	(9,754)	(7,837)
Net deferred tax (liabilities)/assets after valuation allowance	($109)	$63

(1)     Of the deferred tax asset for federal net operating loss, credit, interest and other carryovers, $2,332 expires on or before December 31, 2045 and $7,237 may be carried over indefinitely.

(2)     Of the deferred tax asset for state net operating loss, credit, interest and other carryovers, $1,035 expires on or before December 31, 2045 and $1,000 may be carried over indefinitely.

Net Deferred Tax Assets and Liabilities

Net deferred tax (liabilities)/assets at December 31 were as follows:

	2025	2024
Deferred tax assets	$21,065	$17,991
Deferred tax liabilities	(11,420)	(10,091)
Valuation allowance	(9,754)	(7,837)
Net deferred tax (liabilities)/assets	($109)	$63

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2025	2024	2023
Unrecognized tax benefits – January 1	$688	$1,131	$915
Gross increases – tax positions in prior periods	84		38
Gross decreases – tax positions in prior periods	(4)	(453)	(3)
Gross increases – current period tax positions	253	216	181
Gross decreases – current period tax positions
Settlements		(206)
Unrecognized tax benefits – December 31	$1,021	$688	$1,131