Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Components of income tax [Table Text Block]

Components of income taxes excluding cumulative effects of changes in accounting principles, other comprehensive income, and equity in net results of affiliated companies accounted for after-tax for the years ended December 31 were as follows:


	2019			2020			2021
Income/(Loss) before income taxes (in millions)
U.S.	$	2,656		$	(231)		$	10,043
Non-U.S.	(3,296)			(885)			7,737
Total	$	(640)		$	(1,116)		$	17,780
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	(101)		$	(23)		$	102
Non-U.S.	738			554			598
State and local	33			(45)			26
Total current	670			486			726
Deferred
Federal	(1,190)			(523)			2,290
Non-U.S.	(70)			168			(3,254)
State and local	(134)			29			108
Total deferred	(1,394)			(326)			(856)
Total	$	(724)		$	160		$	(130)
Reconciliation of effective tax rate
U.S. statutory rate	21.0		%	21.0		%	21.0		%
Non-U.S. tax rates under U.S. rates	46.9			(2.6)			1.3
State and local income taxes	12.4			8.9			0.5
General business credits	67.0			35.1			(2.3)
Dispositions and restructurings (a)	45.5			(0.4)			(18.8)
U.S. tax on non-U.S. earnings	(49.2)			27.0			2.4
Prior year settlements and claims	(5.0)			8.3			(0.3)
Tax incentives	20.7			(6.0)			(0.6)
Enacted change in tax laws	(12.5)			1.5			1.1
Valuation allowances	(18.7)			(108.8)			(4.7)
Other	(15.0)			1.7			(0.3)
Effective rate	113.1		%	(14.3)		%	(0.7)		%

__________

(a)Includes a benefit of $2.9 billion to recognize deferred tax assets resulting from changes in our global tax structure in 2021.

Components of deferred tax assets and liabilities [Table Text Block]

The components of deferred tax assets and liabilities at December 31 were as follows (in millions):


	2020		2021
Deferred tax assets
Employee benefit plans	$	4,760	$	2,320
Net operating loss carryforwards	1,584		4,163
Tax credit carryforwards	11,037		10,437
Research expenditures	1,321		1,117
Dealer and dealers’ customer allowances and claims	2,145		1,944
Other foreign deferred tax assets	729		2,005
All other	2,335		2,353
Total gross deferred tax assets	23,911		24,339
Less: Valuation allowances	(1,981)		(1,067)
Total net deferred tax assets	21,930		23,272
Deferred tax liabilities
Leasing transactions	3,299		2,103
Depreciation and amortization (excluding leasing transactions)	3,218		2,881
Finance receivables	574		756
Carrying value of investments	144		2,149
Other foreign deferred tax liabilities	839		893
All other	1,971		2,275
Total deferred tax liabilities	10,045		11,057
Net deferred tax assets/(liabilities)	$	11,885	$	12,215

Summary of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31 were as follows (in millions):


	2020		2021
Beginning balance	$	1,943	$	1,913
Increase – tax positions in prior periods	137		1,054
Increase – tax positions in current period	25		25
Decrease – tax positions in prior periods	(131)		(54)
Settlements	(61)		1
Lapse of statute of limitations	—		(7)
Foreign currency translation adjustment	—		(22)
Ending balance	$	1,913	$	2,910