Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022
	(In millions)
Deferred tax liabilities
Property, plant, and equipment	$	827	$	811
Intangibles	358		417
Right of use assets	263		237
Equity in earnings of affiliates	214		191
Inventory reserves	—		11
Debt exchange	50		52
Reserves and other accruals	49		86
Other	137		108
	$	1,898	$	1,913
Deferred tax assets
Pension and postretirement benefits	$	111	$	104
Inventories	20		—
Lease liabilities	268		244
Stock compensation	42		51

Foreign tax loss carryforwards	494		496
Capital loss carryforwards	42		42
State tax attributes	25		21

Reserves and other accruals	5		22
Other	93		77
Gross deferred tax assets	1,100		1,057
Valuation allowances	(216)		(209)
Net deferred tax assets	$	884	$	848

Net deferred tax liabilities	$	1,014	$	1,065

The net deferred tax liabilities are classified as follows:





Noncurrent assets (foreign)	$	295	$	337
Noncurrent liabilities	(1,106)		(1,183)
Noncurrent liabilities (foreign)	(203)		(219)
	$	(1,014)	$	(1,065)

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
	2023		2022		2021

Statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	0.9		1.4		1.5
Foreign earnings taxed at rates other than the U.S. statutory rate	(0.2)		(3.8)		(2.8)
Foreign currency effects/remeasurement	0.5		0.6		—
Income tax adjustment to filed returns	(0.4)		(0.1)		0.7
Tax benefit on U.S. biodiesel credits	(1.7)		(1.2)		(1.9)
Tax benefit on U.S. railroad credits	(1.5)		(1.2)		(2.0)

U.S. tax on foreign earnings	1.2		0.2		—




Valuation allowances	(0.2)		—		0.7

Other	(0.3)		(0.3)		0.2
Effective income tax rate	19.3	%	16.6	%	17.4	%

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2023 and 2022 as follows:


	Unrecognized Tax Benefits
	December 31, 2023		December 31, 2022
	(In millions)
Beginning balance	$	151	$	157
Additions related to current year’s tax positions	2		6
Additions related to prior years’ tax positions	28		26
Additions (adjustments) related to acquisitions	—		11

Reductions related to lapse of statute of limitations	(6)		(6)
Settlements with tax authorities	(7)		(43)
Ending balance	$	168	$	151