Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The following table sets forth the geographic split of earnings before income taxes:

Significant components of income taxes are as follows:

Significant components of deferred tax liabilities and assets are as follows:


	December 31, 2022		December 31, 2021
	(In millions)
Deferred tax liabilities
Property, plant, and equipment	$	811	$	875
Intangibles	417		403
Right of use assets	237		214
Equity in earnings of affiliates	191		153
Inventory reserves	11		29
Debt exchange	52		53
Reserves and other accruals	86		65
Other	108		185
	$	1,913	$	1,977
Deferred tax assets
Pension and postretirement benefits	$	104	$	137

Lease liabilities	244		220
Stock compensation	51		53

Foreign tax loss carryforwards	496		465
Capital loss carryforwards	42		74
State tax attributes	21		21

Reserves and other accruals	22		158
Other	77		44
Gross deferred tax assets	1,057		1,172
Valuation allowances	(209)		(281)
Net deferred tax assets	$	848	$	891

Net deferred tax liabilities	$	1,065	$	1,086

The net deferred tax liabilities are classified as follows:




Noncurrent assets	$	—	$	27
Noncurrent assets (foreign)	337		299
Noncurrent liabilities	(1,183)		(1,079)
Noncurrent liabilities (foreign)	(219)		(333)
	$	(1,065)	$	(1,086)

Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate on earnings is as follows:


	Year Ended
	December 31
	2022		2021		2020

Statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	1.4		1.5		(0.3)
Foreign earnings taxed at rates other than the U.S. statutory rate	(3.8)		(2.8)		(2.3)
Foreign currency effects/remeasurement	0.6		—		(1.1)
Income tax adjustment to filed returns	(0.1)		0.7		(0.4)
Tax benefit on U.S. biodiesel credits	(1.2)		(1.9)		(3.3)
Tax benefit on U.S. railroad credits	(1.2)		(2.0)		(8.0)

U.S. tax on foreign earnings	0.2		—		0.6




Valuation allowances	—		0.7		0.2

Other	(0.3)		0.2		(1.0)
Effective income tax rate	16.6	%	17.4	%	5.4	%

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2022 and 2021 as follows:


	Unrecognized Tax Benefits
	December 31, 2022		December 31, 2021
	(In millions)
Beginning balance	$	157	$	151
Additions related to current year’s tax positions	6		7
Additions related to prior years’ tax positions	26		15
Additions (adjustments) related to acquisitions	11		—

Reductions related to lapse of statute of limitations	(6)		(9)
Settlements with tax authorities	(43)		(7)
Ending balance	$	151	$	157