XML 105 R42.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Before Taxes
 Years Ended December 31,
202420232022
U.S.$2,143 $2,368 $3,305 
Non-U.S.5,070 4,791 3,074 
Total Income before taxes$7,213 $7,159 $6,379 
Tax Expense (Benefit)
Tax expense consists of:
 Years Ended December 31,
202420232022
Current   
U.S. Federal$606 $176 $653 
U.S. State88 60 124 
Non-U.S.1,012 1,098 815 
Total current tax expense1,706 1,334 1,592 
Deferred
U.S. Federal(210)27 (175)
U.S. State(25)11 (36)
Non-U.S.115 32 
Total deferred tax (benefit) expense(233)153 (180)
Total Tax expense
$1,473 $1,487 $1,412 
Effective income tax rate reconciliation
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:
 Years Ended December 31,
202420232022
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Taxes on non-U.S. earnings1,2,3
(0.5)(2.0)(0.4)
U.S. state income taxes1
0.9 0.5 1.4 
Reserves for tax contingencies1.4 3.4 1.1 
Employee stock compensation(0.7)(0.3)(0.9)
Restructuring4
(0.3)— 0.7 
U.S. federal tax credits
(2.0)(1.6)(0.9)
U.S. valuation allowance4
0.9 (0.1)(0.2)
All other items—net(0.3)(0.1)0.3 
Effective income tax rate20.4 %20.8 %22.1 %
1
Net of changes in valuation allowance.
2
Includes U.S. taxes on non-U.S. earnings, net of foreign tax credits.
3
2023 includes (3.6)% deferred tax benefit resulting from a non-U.S. legislative change, offset by 3.6% deferred tax expense resulting from a full valuation allowance.
4
2024 includes (0.9)% deferred tax benefit resulting from an outside basis difference in assets held for sale, offset by 0.9% deferred tax expense resulting from a full valuation allowance.
Deferred Tax Assets (Liabilities)
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows:
Deferred tax assetsDecember 31,
20242023
Postretirement benefits other than pensions$50 $55 
Asbestos and environmental373 405 
Capitalized research and development947 582 
Employee compensation and benefits143 148 
Lease liabilities263 258 
Other accruals and reserves396 196 
Net operating losses618 687 
Capital loss carryover and outside basis differences467 385 
Tax credit carryforwards and other attributes269 420 
Gross deferred tax assets3,526 3,136 
Valuation allowance(1,253)(1,292)
Total deferred tax assets2,273 1,844 
Deferred tax liabilities
Deferred revenue(244)— 
Pension(1,485)(1,132)
Property, plant and equipment
(371)(441)
Right-of-use asset(242)(240)
Intangibles(679)(817)
Unremitted earnings of foreign subsidiaries(516)(542)
Other asset basis differences(285)(369)
Other— (5)
Total deferred tax liabilities(3,822)(3,546)
Net deferred tax liability1
$(1,549)$(1,702)
1
As of December 31, 2024, Net deferred tax liability excludes $124 million that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Assets and Liabilities Held for Sale.
Summary of Operating Loss Carryforwards
As of December 31, 2024, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$530 $31 
U.S. State725 
Non-U.S.3,465 232 
Total
$4,720 $269 
Summary of Tax Credit Carryforwards
As of December 31, 2024, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$530 $31 
U.S. State725 
Non-U.S.3,465 232 
Total
$4,720 $269 
Summary of Capital Loss Carryforwards
As of December 31, 2024, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$530 $31 
U.S. State725 
Non-U.S.3,465 232 
Total
$4,720 $269 
Schedule of Unrecognized Tax Benefits Roll Forward
The table below summarizes the Company's change in unrecognized tax benefits for the years ended December 31, 2024, 2023, and 2022:
Years Ended December 31,
202420232022
Change in unrecognized tax benefits   
Balance at beginning of year$1,225 $1,086 $1,061 
Gross increases related to current period tax positions64 89 64 
Gross increases related to prior periods tax positions12 181 31 
Gross decreases related to prior periods tax positions(17)— (19)
Decrease related to resolutions of audits with tax authorities(31)(132)(3)
Expiration of the statute of limitations for the assessment of taxes(9)(3)(8)
Foreign currency translation(33)(40)
Balance at end of year$1,211 $1,225 $1,086 
Summary of Income Tax Examinations
The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2024:
JurisdictionOpen Tax Years
Examination in progressExamination not yet initiated
U.S. Federal2017-20212022-2024
U.S. State2013-20222023-2024
Canada2019-20212022-2024
China2013-2024N/A
Germany
2013-20202021-2024
India2014-20212022-2024
Malaysia2018-20212022-2024
Puerto RicoN/A2020-2024
Switzerland2019-20222023-2024
United Kingdom2014-20222023-2024