Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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
	2025		2024		2023
United States	$	(192)	$	656	$	1,844
Foreign	1,447		1,599		2,450
Total Earnings Before Income Taxes	$	1,255	$	2,255	$	4,294

Schedule of Significant Components of Income Taxes

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

	Year Ended December 31
	2025		2024		2023
Current expense (benefit)
Federal	$	(102)	$	108	$	291
State	19		8		47
Foreign	310		490		513
	$	227	$	606	$	851
Deferred (benefit) expense
Federal	(46)		(99)		(52)
State	(27)		6		(10)
Foreign	28		(37)		39
	$	(45)	$	(130)	$	(23)
Income tax expense	$	182	$	476	$	828

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, 2025		December 31, 2024
Deferred tax liabilities
Property, plant, and equipment	$	758	$	808
Intangibles	330		343
Right of use assets	313		317
Equity in earnings of affiliates	195		236
Debt exchange	47		49
Reserves and other accruals	28		133
Other	36		30
	$	1,707	$	1,916
Deferred tax assets
Pension and postretirement benefits	$	85	$	95
Inventories	12		12
Lease liabilities	320		323
Stock compensation	22		36
Foreign tax loss carryforwards	503		386
Foreign capital loss carryforwards	45		41
State tax attributes	32		23
US carryforwards	113		196
Other	81		111
Gross deferred tax assets	1,213		1,223
Valuation allowances	(292)		(223)
Net deferred tax assets	$	921	$	1,000
Net deferred tax liabilities	$	786	$	916
The net deferred tax liabilities are classified as follows:
Non-current assets	$	349	$	352
Non-current liabilities	(1,135)		(1,268)
	$	(786)	$	(916)

Schedule of Valuation Allowance

The activity related to the income tax valuation allowance for the years ended December 31, 2025, 2024, and 2023 was as follows (in millions):

	Year Ended December 31
	2025		2024		2023
Opening balance, January 1	$	223	$	216	$	209
Additions	92		40		58
Deductions	(23)		(33)		(51)
Ending balance, December 31	$	292	$	223	$	216

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

The table below provides additional details per the requirements of ASU 2023-09 for the year ended December 31, 2025. See Note 1. Summary of Significant Accounting Policies for additional details on the adoption of ASU 2023-09.

		Year Ended December 31, 2025
		$		%
Provision for income taxes at U.S. federal statutory rate		$	264	21.0	%
State and local income tax, net of federal (national) income tax effect		(6)		(0.5)
Foreign Tax Effects:	Singapore - Non-taxable Equity Earning	(65)		(5.2)
	Singapore - Other	(21)		(1.7)
	Japan - Non-deductible Impairment	40		3.2
	Japan - Other	(15)		(1.2)
	Brazil - Valuation Allowance	53		4.2
	Brazil - Other	(2)		(0.1)
	Switzerland - Foreign Rate Differential	(35)		(2.8)
	Switzerland - Other	22		1.8
	Other Foreign Tax Effects	68		5.4
Tax Credits:	Tax benefit on U.S. railroad credits	(63)		(5.0)
	Other tax credits	(27)		(2.1)
Effects of cross-border tax laws	Amended 2017 tax return - transition tax	(24)		(2.0)
	Other	13		1.1
Change in unrecognized tax benefits		(17)		(1.4)
Other adjustments		(3)		(0.2)
Total tax expense and effective tax rate		$	182	14.5	%

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

	Year Ended December 31
	2024		2023
U.S. Federal Statutory rate	21.0	%	21.0	%
State income taxes, net of federal tax benefit	0.2		0.9
Foreign earnings taxed at rates other than the U.S. statutory rate	2.2		(0.3)
Foreign currency effects/remeasurement	(4.8)		0.5
Withholding Tax	1.8		0.1
Impairment of Investments	4.3		0.5
Change in Uncertain Tax Position	3.2		0.1
Tax benefit on U.S. biodiesel credits	(2.9)		(1.7)
Second-generation biofuel credit	(1.2)		—
U.S. railroad credits	(2.5)		(1.5)
U.S. tax on foreign earnings	0.6		1.2
Other	(0.8)		(1.5)
Effective income tax rate	21.1	%	19.3	%

Schedule of Supplemental Cash Flow Information Related to Income Taxes Paid

The following table presents supplemental cash flow information related to income taxes paid (net of refunds received):

		Year Ended December 31
		2025
U.S. Federal		$	48
US State and Local		15
Foreign:
	Argentina	30
	Canada	44
	Germany	21
	Mexico	58
	Philippines	26
	Switzerland	25
	Other	122
Total cash taxes paid, net of refunds received		$	389

Schedule of Unrecognized Tax Benefits

The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2025 and 2024 (in millions).

	December 31,
	2025		2024
Opening balance, January 1	$	185	$	168
Net additions related to current year’s tax positions	9		12
Net additions related to prior years’ tax positions	—		57
Additions (adjustments) related to acquisitions	—		2
Reductions related to prior years’ tax positions	(13)		—
Reductions related to lapse of statute of limitations	(8)		(6)
Settlements with tax authorities	(35)		(48)
Ending balance, December 31	$	138	$	185