XML 50 R37.htm IDEA: XBRL DOCUMENT v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Income Taxes
The following table presents the components of income before income taxes (in millions):
Year ended December 31,
202420232022
U.S. companies$303 $105 $1,157 
Non-U.S. companies510 711 640 
Income before income taxes$813 $816 $1,797 
Schedule of Current and Deferred Amounts of Provision for Income Taxes
The following table presents the current and deferred amounts of the provision for income taxes, based on the location of the taxing authority (in millions):
Year ended December 31,
202420232022
Current:
Federal$(77)$(82)$(191)
State and municipal(6)(13)(16)
Foreign(171)(148)(250)
Deferred:   
Federal63 76 52 
State and municipal6 7 8 
Foreign(36)(8)(14)
Provision for income taxes$(221)$(168)$(411)
Schedule of Effective Income Tax Rate Reconciliation
The following table presents the reconciliation of the statutory U.S. federal income tax rate to the effective tax rate:
Year ended December 31,
202420232022
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income tax provision (benefit), net of federal effect0.2 (0.3)0.7 
Non-deductible Items9.1 5.2 0.5 
Release of cumulative translation losses6.0 
Audit settlements & change in reserve4.8 4.8 3.7 
Differential arising from foreign earnings (1)
1.6 0.3 2.2 
Remeasurement of deferred tax assets and liabilities(0.8)(0.3)(0.1)
Stock compensation(0.9)(2.1)(0.8)
Valuation allowance(2.3)5.7 2.1 
Foreign derived intangible income(2.7)(2.3)(2.7)
Tax credits(3.9)(6.9)(3.3)
Non-Taxable Items(5.6)(4.0)
Intercompany loan adjustment 0.6 
Other items, net0.7 (0.5)(1.0)
Effective tax rate27.2 %20.6 %22.9 %
(1)Includes impact of intercompany asset sales.
Schedule of Deferred Tax Assets and Liabilities
The following table presents the tax effects of temporary differences and carryforwards that gave rise to significant portions of the deferred tax assets and liabilities (in millions):
December 31,
20242023
Loss and tax credit carryforwards (1)
$218 $275 
Other assets246 245 
Research and development capitalization428 362 
Asset impairments and restructuring reserves32 43 
Postretirement medical and life benefits90 103 
Other accrued liabilities375 319 
Other employee benefits291 344 
Gross deferred tax assets1,680 1,691 
Valuation allowances (1)
(173)(207)
Total deferred tax assets1,507 1,484 
Intangible and other assets(110)(117)
Fixed assets(212)(223)
Finance leases(192)(209)
Total deferred tax liabilities(514)(549)
Net deferred tax assets$993 $935 
(1)The Company also has Luxembourg deferred tax asset net operating losses of up to $2.9 billion that have a remote possibility of realization and therefore, are not recognized in the deferred tax table above.
Schedule of Net Deferred Tax Assets
Net deferred tax assets on the consolidated balance sheets consisted of the following (in millions):
December 31,
20242023
Deferred tax assets$1,130 $1,153 
Other liabilities(137)(218)
Net deferred tax assets$993 $935 
Schedule of Deferred Tax Assets for Loss and Tax Credit Carryforwards
The following table presents details of the deferred tax assets for loss and tax credit carryforwards (in millions):
Expiration
Total2025-20292030-20342035-2044Indefinite
Net operating losses$213 $50 $16 $25 $122 
Tax credits5 1 4 
Balance as of December 31, 2024$218 $51 $20 $25 $122 
Schedule of Deferred Tax Valuation Allowance
The following table presents the changes in the deferred tax valuation allowance (in millions):
202420232022
Balance as of January 1$207 $166 $138 
Additions26 66 81 
Reductions(60)(25)(53)
Balance as of December 31$173 $207 $166 
Schedule of Unrecognized Tax Benefits
The following table presents the reconciliation of the beginning and ending amount of unrecognized tax benefits (in millions):
 202420232022
Balance as of January 1$373 $206 $178 
Additions based on tax positions related to the current year41 54 10 
Additions for tax positions of prior years6 127 24 
Reductions for tax positions of prior years(6)(3)(5)
Settlements and lapse of statute of limitations(3)(11)(1)
Balance as of December 31$411 $373 $206