INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Income before Income Tax, Domestic and Foreign


Geographic Allocation of Income and Provision for Income Taxes
In millions	2022		2021		2020
Income (loss) before income taxes
Domestic	$	2,383	$	1,523	$	(681)
Foreign	3,707		6,622		2,752
Income before income taxes	$	6,090	$	8,145	$	2,071
Current tax expense (benefit)
Federal	$	434	$	(46)	$	(176)
State and local	82		48		4
Foreign	855		1,460		691
Total current tax expense	$	1,371	$	1,462	$	519
Deferred tax expense
Federal	$	63	$	130	$	184
State and local	1		26		19
Foreign	15		122		55
Total deferred tax expense	$	79	$	278	$	258
Provision for income taxes	$	1,450	$	1,740	$	777
Net income	$	4,640	$	6,405	$	1,294

Schedule of Effective Income Tax Rate Reconciliation


Reconciliation to U.S. Statutory Rate	2022		2021		2020
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Equity earnings effect	(1.2)		(2.2)		0.2
Foreign income taxed at rates other than the statutory U.S. federal income tax rate	(1.4)		(1.3)		(2.3)
U.S. tax effect of foreign earnings and dividends	1.2		1.7		3.9
Unrecognized tax benefits	1.3		4.7		7.3
Divestitures 1	—		—		(5.1)
Changes in valuation allowances	(2.8)		2.6		12.6
Federal tax accrual adjustment 2	0.6		(5.3)		0.3
State and local income taxes	2.8		0.2		0.3



Other - net	2.3		—		(0.7)
Effective tax rate	23.8	%	21.4	%	37.5	%

1.The 2020 impact relates to the divestiture of a bio-ethanol manufacturing facility in Brazil. See Note 5 for additional information.

2.The 2021 impact represents a capital loss incurred on an internal restructuring fully offset by a valuation allowance reported in "Changes in valuation allowances" line item.

Schedule of Deferred Tax Assets and Liabilities


Deferred Tax Balances at Dec 31	2022				2021
In millions	Assets		Liabilities		Assets		Liabilities
Property	$	505	$	3,001	$	484	$	3,150
Tax loss and credit carryforwards	1,472		—		1,784		—
Postretirement benefit obligations	749		239		1,753		303
Other accruals and reserves	1,497		279		1,487		191
Intangibles	36		415		108		556
Inventory	129		278		33		203

Investments	116		41		31		26

Other – net	999		131		1,093		101
Subtotal	$	5,503	$	4,384	$	6,773	$	4,530
Valuation allowances	(1,269)		—		(1,391)		—
Total	$	4,234	$	4,384	$	5,382	$	4,530

Summary of Operating Loss Carryforwards


Operating Loss and Tax Credit Carryforwards at Dec 31	2022		2021
In millions	Assets		Assets
Operating loss carryforwards
Expire within 5 years	$	158	$	240
Expire after 5 years or indefinite expiration	752		817
Total operating loss carryforwards	$	910	$	1,057
Tax credit carryforwards
Expire within 5 years	$	77	$	227
Expire after 5 years or indefinite expiration	96		103
Total tax credit carryforwards	$	173	$	330
Capital loss carryforwards
Expire within 5 years	$	389	$	397
Total tax loss and tax credit carryforwards	$	1,472	$	1,784

Schedule of Total Gross Unrecognized Tax Benefits

The following table provides a reconciliation of the Company's unrecognized tax benefits:


Total Gross Unrecognized Tax Benefits
In millions	2022		2021		2020
Total unrecognized tax benefits at Jan 1	$	580	$	373	$	319
Decreases related to positions taken on items from prior years	(47)		(3)		(1)
Increases related to positions taken on items from prior years	53		187		52
Increases related to positions taken in the current year	46		44		18
Settlement of uncertain tax positions with tax authorities	(111)		(18)		(14)
Decreases due to expiration of statutes of limitations	—		(1)		(1)
Foreign exchange gain	(1)		(2)		—
Total unrecognized tax benefits at Dec 31	$	520	$	580	$	373
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	520	$	501	$	285
Total amount of interest and penalties expense (benefit) recognized in "Provision for income taxes"	$	(27)	$	359	$	84
Total accrual for interest and penalties recognized in the consolidated balance sheets	$	498	$	502	$	144