Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Earnings from Continuing Operations Before Income Taxes

Components of earnings before income taxes are as follows:

Years ended December 31	2023		2022		2021
United States	$	1,744	$	1,312	$	1,030
Other nations	402		203		522
	$	2,146	$	1,515	$	1,552

Income Tax Expense (Benefit)

Components of income tax expense are as follows:

Years ended December 31	2023		2022		2021
United States Federal	$	269	$	240	$	134
Other nations	125		159		98
States (U.S.)	70		83		36
Current income tax expense	464		482		268
United States Federal	(30)		(179)		(2)
Other nations	(9)		(118)		22
States (U.S.)	7		(37)		14
Deferred income tax expense (benefit)	(32)		(334)		34
Total income tax expense	$	432	$	148	$	302

Federal Statutory Tax Rate and Income Tax Expense

Differences between income tax expense computed at the U.S. federal statutory tax rate of 21% and income tax expense as reflected in the Consolidated Statements of Operations are as follows:

Years ended December 31	2023				2022				2021
Income tax expense at statutory rate	$	450	21.0	%	$	318	21.0	%	$	326	21.0	%
State income taxes, net of federal benefit	71		3.3	%	76		5.0	%	55		3.5	%
Non-U.S. tax expense on non-U.S. earnings	15		0.7	%	1		0.1	%	8		0.5	%
U.S. tax expense (benefit) on undistributed non-U.S. earnings	(44)		(2.1)	%	(43)		(2.8)	%	6		0.4	%
Intra-group IP transfer	—		—	%	(77)		(5.1)	%	—		—	%
Stock compensation	(33)		(1.5)	%	(68)		(4.5)	%	(32)		(2.1)	%
Valuation allowances	(13)		(0.6)	%	(51)		(3.4)	%	(34)		(2.2)	%
Research credits	(19)		(0.9)	%	(16)		(1.1)	%	(20)		(1.3)	%
Reserve for uncertain tax positions	(3)		(0.1)	%	(6)		(0.4)	%	(10)		(0.6)	%
Other tax expense (benefit)	8		0.4	%	14		0.9	%	3		0.2	%
	$	432	20.1	%	$	148	9.8	%	$	302	19.5	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets (liabilities) are as follows: 

December 31	2023		2022
Inventory	$	30	$	38
Accrued liabilities and allowances	77		67
Employee benefits	270		290
Capitalized items	146		95
Tax basis differences on investments	4		6
Depreciation tax basis differences on fixed assets	(2)		1
Undistributed non-U.S. earnings	(28)		(38)
Tax attribute carryforwards	115		298
Business reorganization	9		7
Warranty and customer liabilities	22		22
Deferred revenue and costs	406		382
Valuation allowances	(63)		(221)
Operating lease assets	(120)		(116)
Operating lease liabilities	129		129
Other	10		4
	$	1,005	$	964

Summary of Tax Credit Carryforwards

Tax attribute carryforwards are as follows: 

December 31, 2023	Gross Tax Loss		Tax Effected		Expiration Period
United States:
U.S. tax losses	$	129	$	27	2024-2037
General business credits	—		2		2030-2039
State tax losses	—		12		2024-2044
State tax credits	—		6		2024-2042
Non-U.S. subsidiaries:
Japan tax losses	6		2		2024-2029
United Kingdom tax losses	146		36		Unlimited
Canada tax losses	18		5		2034-2043
Canada tax credits	—		6		2037-2043
Spain tax credits	—		6		2024-2029
Other subsidiaries tax losses	49		10		Various
Other subsidiaries tax credits	—		3		Various
			$	115

Unrecognized Tax Benefits, Including Those Attributable to Discontinued Operations

A roll-forward of unrecognized tax benefits is as follows: 

(in millions)	2023		2022
Balance at January 1	$	35	$	43
Additions based on tax positions related to current year	1		1
Additions for tax positions of prior years	1		2
Reductions for tax positions of prior years	(1)		(1)
Settlements and agreements	—		(4)
Lapse of statute of limitations	(4)		(6)
Balance at December 31	$	32	$	35

Summary of Open Tax Years by Major Jurisdiction

A summary of open tax years by major jurisdiction is presented below: 

Jurisdiction	Tax Years
United States	2020-2023
Australia	2019-2023
Canada	2019-2023
Germany	2018-2023
India	1997-2023
Israel	2019-2023
Poland	2018-2023
Malaysia	2016-2023
United Kingdom	2021-2023