Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Income Taxes by Geographic Region

The following table sets forth the geographic split of earnings before income taxes (in millions).

	Year Ended December 31
	2024		2023		2022
United States	$	656	$	1,844	$	2,725
Foreign	1,599		2,450		2,508
Total Earnings Before Income Taxes	$	2,255	$	4,294	$	5,233

Schedule of Significant Components of Income Taxes

Significant components of income tax expense are as follows (in millions):

	Year Ended December 31
	2024		2023		2022
Current expense
Federal	$	108	$	291	$	379
State	8		47		97
Foreign	490		513		481
	$	606	$	851	$	957
Deferred expense (benefit)
Federal	(99)		(52)		23
State	6		(10)		7
Foreign	(37)		39		(119)
	$	(130)	$	(23)	$	(89)
Income tax expense	$	476	$	828	$	868

Schedule of Significant Components of Deferred Tax Liabilities and Assets

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

	December 31, 2024		December 31, 2023
Deferred tax liabilities
Property, plant, and equipment	$	808	$	827
Intangibles	343		358
Right of use assets	317		263
Equity in earnings of affiliates	236		214
Debt exchange	49		50
Reserves and other accruals	133		49
Other	30		137
	$	1,916	$	1,898
Deferred tax assets
Pension and postretirement benefits	$	95	$	111
Inventories	12		20
Lease liabilities	323		268
Stock compensation	36		42
Foreign tax loss carryforwards	386		494
Capital loss carryforwards	41		42
State tax attributes	23		25
US carryforwards	196		27
Other	111		71
Gross deferred tax assets	1,223		1,100
Valuation allowances	(223)		(216)
Net deferred tax assets	$	1,000	$	884
Net deferred tax liabilities	$	916	$	1,014
The net deferred tax liabilities are classified as follows:
Noncurrent assets	$	352	$	295
Noncurrent liabilities	(1,268)		(1,309)
	$	(916)	$	(1,014)

Schedule of Valuation Allowance

The activity related to the income tax valuation allowance for the years ended December 31, 2024, 2023, and 2022 was as follows (in millions):

	Year Ended December 31
	2024		2023		2022
Opening balance, January 1	$	216	$	209	$	281
Additions	40		58		18
Deductions	(33)		(51)		(90)
Ending balance, December 31	$	223	$	216	$	209

Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate on Earnings

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
	2024		2023		2022
US Federal Statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal tax benefit	0.2		0.9		1.4
Foreign earnings taxed at rates other than the U.S. statutory rate	2.2		(0.3)		(3.8)
Foreign currency effects/remeasurement	(4.8)		0.5		0.6
Withholding Tax	1.8		0.1		—
Impairment of Investments	4.3		0.5		—
Change in Uncertain Tax Position	3.2		0.1		0.5
Tax benefit on U.S. biodiesel credits	(2.9)		(1.7)		(1.2)
Second-generation biofuel credit	(1.2)		—		—
U.S. railroad credits	(2.5)		(1.5)		(1.2)
U.S. tax on foreign earnings	0.6		1.2		0.2
Other	(0.8)		(1.5)		(0.9)
Effective income tax rate	21.1	%	19.3	%	16.6	%

Schedule of Unrecognized Tax Benefits

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2024 and 2023 (in millions).

	December 31,
	2024		2023
Opening balance, January 1	$	168	$	151
Net additions related to current year’s tax positions	12		2
Net additions related to prior years’ tax positions	57		28
Additions (adjustments) related to acquisitions	2		—
Reductions related to lapse of statute of limitations	(6)		(6)
Settlements with tax authorities	(48)		(7)
Ending balance, December 31	$	185	$	168