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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

For financial reporting purposes, income before income taxes includes the following components:


For the Years Ended December 31,
(In millions)	2024		2023		2022
Income before income taxes:
U.S.	$	1,894	$	1,823	$	1,468
Other	3,586		3,203		2,614
	$	5,480	$	5,026	$	4,082

The expense (benefit) for income taxes is comprised of:

Current –
U.S. Federal	$	247	$	273	$	262
Other national governments	836		838		653
U.S. state and local	123		142		123
	1,206		1,253		1,038
Deferred –
U.S. Federal	53		29		38
Other national governments	84		(73)		(91)
U.S. state and local	20		15		10
	157		(29)		(43)
Total income taxes	$	1,363	$	1,224	$	995

The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:


December 31,
(In millions)	2024		2023
Deferred tax assets:
Accrued expenses not currently deductible	$	713	$	679
Differences related to non-U.S. operations (a)	282		299

Accrued U.S. retirement benefits	149		134
Net operating losses (b)	312		297
Income currently recognized for tax	40		48

Other	40		32
	$	1,536	$	1,489


Deferred tax liabilities:

Differences related to non-U.S. operations	$	588	$	586
Depreciation and amortization	616		527
Accrued retirement & post-retirement benefits – non-U.S. operations	374		404
Capitalized expenses currently recognized for tax	133		120
Other	42		38
	$	1,753	$	1,675

(a)Net of valuation allowances of $75 million in 2024 and $53 million in 2023.

(b)Net of valuation allowances of $69 million in 2024 and 2023.


December 31,
(In millions)	2024		2023
Balance sheet classifications:



Deferred tax assets	$	237	$	357
Other liabilities	$	454	$	543

A reconciliation from the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


For the Years Ended December 31,	2024		2023		2022
U.S. Federal statutory rate	21.0	%	21.0	%	21.0	%
U.S. state and local income taxes — net of U.S. Federal income tax benefit	2.1		2.6		2.7
Differences related to non-U.S. operations	2.5		2.2		0.8
Change in valuation allowance	—		(1.4)		(0.1)
Equity compensation	(0.7)		(0.7)		(0.7)
Uncertain tax positions	(0.3)		(0.1)		0.1
Other	0.3		0.7		0.6
Effective tax rate	24.9	%	24.3	%	24.4	%

Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022:


(In millions)	2024		2023		2022
Balance at January 1,	$	124	$	97	$	94
Additions, based on tax positions related to current year	5		6		1
Additions for tax positions of prior years	8		44		15
Reductions for tax positions of prior years	—		(8)		(2)

Settlements	(10)		(8)		(2)
Lapses in statutes of limitations	(15)		(7)		(9)
Balance at December 31,	$	112	$	124	$	97

The status of audits for significant jurisdictions outside the U.S. are summarized in the table below: