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Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Taxes  
Income before income taxes

($ in millions)

For the year ended December 31:

    

2021

    

2020

    

2019

Income/(loss) from continuing operations before income taxes

U.S. operations

 

$

(2,654)

$

(2,349)

$

(874)

Non-U.S. operations

7,491

4,921

8,080

Total income from continuing operations before income taxes

 

$

4,837

$

2,572

$

7,206

Components of the provision for income taxes by geographic operations and taxing jurisdiction

($ in millions)

For the year ended December 31:

    

2021

    

2020

    

2019

U.S. operations

 

$

(969)

$

1,913

$

(419)

Non-U.S. operations

1,093

(3,273)

479

Total continuing operations provision for/(benefit from) income taxes

 

$

124

$

(1,360)

$

60

($ in millions)

For the year ended December 31:

    

2021

    

2020

    

2019

U.S. federal

Current

 

$

374

$

312

$

327

Deferred

(1,358)

1,102

(873)

 

$

(984)

$

1,414

$

(546)

U.S. state and local

Current

 

$

161

$

345

$

(55)

Deferred

(370)

(358)

(85)

 

$

(209)

$

(13)

$

(140)

Non-U.S.

Current

 

$

1,342

$

1,208

$

1,376

Deferred

(25)

(3,969)

(630)

 

$

1,317

$

(2,761)

$

746

Total continuing operations provision for/(benefit from) income taxes

 

$

124

$

(1,360)

$

60

Discontinued operations provision for/(benefit from) income taxes

714

484

670

Provision for social security, real estate, personal property and other taxes

3,227

3,199

3,304

Total taxes included in net income

 

$

4,065

$

2,322

$

4,034

Effective income tax rate reconciliation

For the year ended December 31:

    

2021

    

2020

    

2019

Statutory rate

 

21

%

21

%

21

%

Enactment of U.S. tax reform

 

2

Tax differential on foreign income

 

(10)

(31)

(14)

Intra-entity IP sale

 

(37)

Domestic incentives

 

(5)

(9)

(6)

State and local

 

(3)

0

(2)

Other

 

0

3

0

Effective rate

 

3

%

(53)

%

1

%

Percentages rounded for disclosure purposes.

Components of deferred tax assets and liabilities

Deferred Tax Assets

($ in millions)

 

At December 31:

    

2021

    

2020

Retirement benefits

 

$

3,142

$

3,700

Leases

1,061

1,149

Share-based and other compensation

661

579

Domestic tax loss/credit carryforwards

1,619

1,746

Deferred income

630

661

Foreign tax loss/credit carryforwards

983

818

Bad debt, inventory and warranty reserves

390

324

Depreciation

249

139

Hedging losses

26

576

Restructuring charges

216

253

Accruals

305

483

Intangible assets

2,929

3,540

Capitalized research and development

2,161

1,387

Other

1,280

1,352

Gross deferred tax assets

15,652

16,707

Less: valuation allowance

883

850

Net deferred tax assets

 

$

14,769

$

15,857

*

Deferred Tax Liabilities

($ in millions)

At December 31:

    

2021

    

2020

    

Goodwill and intangible assets

 

$

2,290

$

2,635

GILTI deferred taxes

3,257

4,119

Leases and right-of-use assets

1,314

1,584

Depreciation

518

646

Retirement benefits

1,971

1,209

Software development costs

1,016

1,007

Deferred transition costs

42

200

Undistributed foreign earnings

131

276

Other

817

734

Gross deferred tax liabilities

 

$

11,356

$

12,410

Reconciliation of the beginning and ending amount of unrecognized tax benefits

($ in millions)

2021

    

2020

    

2019

Balance at January 1

$

8,568

$

7,146

$

6,759

Additions based on tax positions related to the current year

934

1,690

816

Additions for tax positions of prior years

247

159

779

Reductions for tax positions of prior years (including impacts due to a lapse of statute)

(688)

(408)

(922)

Settlements

(352)

(19)

(286)

Balance at December 31

$

8,709

$

8,568

$

7,146