Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Components of income tax [Table Text Block]

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


	2022			2023			2024
Income/(Loss) before income taxes (in millions)
U.S.	$	(6,548)		$	3,395		$	3,424
Non-U.S.	3,532			572			3,809
Total	$	(3,016)		$	3,967		$	7,233
Provision for/(Benefit from) income taxes (in millions)
Current
Federal	$	68		$	62		$	78
Non-U.S.	781			948			791
State and local	123			229			107
Total current	972			1,239			976
Deferred
Federal	(2,292)			(413)			25
Non-U.S.	688			(1,149)			303
State and local	(232)			(39)			35
Total deferred	(1,836)			(1,601)			363
Total	$	(864)		$	(362)		$	1,339
Reconciliation of effective tax rate
U.S. statutory tax rate	21.0		%	21.0		%	21.0		%
Non-U.S. tax rate differential	(8.7)			(3.4)			2.9
State and local income taxes	2.3			1.9			1.7
General business credits	13.0			(15.9)			(5.9)
Nontaxable foreign currency gains and losses	(4.2)			—			—
Dispositions and restructurings (a)	(7.0)			(14.7)			—
U.S. tax on non-U.S. earnings	2.8			7.7			(0.2)
Prior year settlements and claims	1.5			1.2			0.1
Tax incentives	2.0			(3.9)			(2.2)
Enacted change in tax laws	(2.0)			0.1			0.4
Valuation allowances	6.2			(0.7)			(1.0)
Other	1.7			(2.4)			1.7
Effective tax rate	28.6		%	(9.1)		%	18.5		%

__________

(a)2023 includes benefits of $610 million associated with legal entity restructuring within our leasing operations and China.

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):


	2023		2024
Deferred tax assets
Net operating loss carryforwards	$	7,262	$	7,458
Tax credit carryforwards	8,944		7,993
Research expenditures	3,799		4,873
Dealer and dealers’ customer allowances and claims	2,752		3,498
Employee benefit plans	2,470		2,010
Other foreign deferred tax assets	3,456		2,691
All other	2,299		1,995
Total gross deferred tax assets	30,982		30,518
Less: Valuation allowances	(4,187)		(3,856)
Total net deferred tax assets	26,795		26,662
Deferred tax liabilities
Leasing transactions	3,253		3,523
Depreciation and amortization (excluding leasing transactions)	3,389		3,590
Finance receivables	699		524
Other foreign deferred tax liabilities	1,255		1,381
All other	2,219		2,343
Total deferred tax liabilities	10,815		11,361
Net deferred tax assets/(liabilities)	$	15,980	$	15,301

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):


	2023		2024
Beginning balance	$	2,939	$	2,913
Increase – tax positions in prior periods	103		512
Increase – tax positions in current period	45		11
Decrease – tax positions in prior periods	(79)		(775)
Settlements	(115)		(13)
Lapse of statute of limitations	(33)		(5)
Foreign currency translation adjustment	53		(103)
Ending balance	$	2,913	$	2,540