Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Earnings From Continuing Operations Before Income Taxes

Earnings from continuing operations before income taxes for the years ended December 31 were as follows ($ in millions):

	2023		2022		2021
United States	$	1,310	$	2,527	$	2,054
Non-U.S.	3,734		4,619		4,457
Total	$	5,044	$	7,146	$	6,511

Schedule of Provision for Income Taxes

The provision for income taxes from continuing operations for the years ended December 31 were as follows ($ in millions):

	2023		2022		2021
Current:
Federal U.S.	$	559	$	232	$	59
Non-U.S.	1,271		1,042		982
State and local	197		126		125
Deferred:
Federal U.S.	(737)		(362)		(55)
Non-U.S.	(338)		(145)		(16)
State and local	(129)		(75)		(31)
Income tax provision	$	823	$	818	$	1,064

Schedule of Deferred Income Tax

Deferred income tax assets and liabilities as of December 31 were as follows ($ in millions):

	2023		2022
Deferred tax assets:
Allowance for doubtful accounts	$	18	$	17
Inventories	120		118
Pension and postretirement benefits	25		17
Environmental and regulatory compliance	37		39
Other accruals and prepayments	574		406
Stock-based compensation expense	115		105
Operating lease liabilities	252		238
Research and development expense	441		243
Tax credit and loss carryforwards	557		479
Valuation allowances	(234)		(236)
Total deferred tax asset	1,905		1,426
Deferred tax liabilities:
Property, plant and equipment	(125)		(92)
Insurance, including self-insurance	(315)		(803)
Operating lease ROU assets	(228)		(219)
Goodwill and other intangibles	(3,429)		(3,270)
Total deferred tax liability	(4,097)		(4,384)
Net deferred tax liability	$	(2,192)	$	(2,958)

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

The effective income tax rate from continuing operations for the years ended December 31 varies from the U.S. statutory federal income tax rate as follows:

	Percentage of Pretax Earnings
	2023		2022		2021
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in tax rate resulting from:
State income taxes (net of federal income tax benefit)	1.2	%	1.2	%	1.0	%
Non-U.S. rate differential	(3.4)	%	(3.4)	%	(2.4)	%
Resolution and expiration of statutes of limitation of uncertain tax positions	(0.4)	%	(0.3)	%	(2.9)	%
Realignment of businesses	0.6	%	(5.7)	%	—	%
Research credits	(1.6)	%	(0.6)	%	(0.6)	%
Foreign-derived intangible income, uncertain tax positions and other	(0.8)	%	(0.3)	%	1.1	%
Excess tax benefits from stock-based compensation	(0.3)	%	(0.5)	%	(0.9)	%
Effective income tax rate	16.3	%	11.4	%	16.3	%

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties related to both continuing and discontinued operations, is as follows ($ in millions):

	2023		2022		2021
Unrecognized tax benefits, beginning of year	$	1,139	$	1,095	$	1,175
Additions based on tax positions related to the current year	72		44		47
Additions for tax positions of prior years	41		49		166
Reductions for tax positions of prior years	(15)		(10)		(100)
Acquisitions, divestitures and other	(14)		6		53
Lapse of statute of limitations	(11)		(16)		(219)
Settlements	(8)		(7)		(4)
Effect of foreign currency translation	10		(22)		(23)
Unrecognized tax benefits, end of year	$	1,214	$	1,139	$	1,095