Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The provision for income taxes by taxing jurisdiction and by significant components consisted of the following:

($ in millions)	2022	2021	2020
Current
U.S. federal	$137	$25	$12
U.S. state and local	20	13	6
Foreign	325	301	320
Total current income tax expense	$482	$339	$338
Deferred
U.S. federal	($79)	$12	$1
U.S. state and local	(7)	3	(3)
Foreign	(71)	20	(45)
Total deferred income tax (benefit)/expense	($157)	$35	($47)
Total income tax expense	$325	$374	$291

Reconciliation of Statutory U.S. Corporate Federal Income Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate follows:

	2022		2021		2020
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Changes in rate due to:
Taxes on non-U.S. earnings	3.6		2.7		3.3
U.S. state and local taxes	0.7		0.8		0.3
U.S. tax (benefit)/cost on foreign operations	(0.4)		(1.6)		0.1
Tax benefits from equity awards	(0.3)		(0.3)		(0.4)
Change in valuation allowance reserves	0.6		—		(1.4)
U.S. tax incentives	(1.0)		(0.6)		(0.9)
Uncertain tax positions	(0.4)		(1.4)		0.9
Other	(0.3)		—		(1.5)
Effective income tax rate	23.5	%	20.6	%	21.4	%

Net deferred income tax assets and liabilities

($ in millions)	2022	2021
Deferred income tax assets related to
Employee benefits	$275	$386
Contingent and accrued liabilities	67	74
Operating loss and other carry-forwards	218	278
Operating lease liabilities	203	215
Research and development amortization	149	68
Other	168	121
Valuation allowance	(182)	(172)
Total	$898	$970
Deferred income tax liabilities related to
Property	$223	$278
Intangibles	720	814
Employee benefits	81	75
Operating lease right-of-use assets	206	216
Other	74	36
Total	$1,304	$1,419
Deferred income tax liabilities – net	($406)	($449)

Summary of Operating Loss Carryforwards

($ in millions)	2022	2021	Expiration
Available net operating loss carryforwards, tax effected:
Indefinite expiration	$84	$106	NA
Definite expiration	66	77	2023-2042
Total	$150	$183
Income tax credit carryforwards	$89	$115	2023-2042

Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits (excluding interest and penalties) as of December 31 follows:

($ in millions)	2022	2021	2020
January 1	$158	$175	$167
Current year tax positions - additions	19	12	25
Prior year tax positions - additions	2	10	5
Prior year tax positions - reductions	(2)	(2)	(2)
Statute of limitations expirations	(23)	(19)	(8)
Settlements	(3)	(21)	(11)
Foreign currency translation	(6)	3	(1)
December 31	$145	$158	$175

Interest and penalties

($ in millions)	2022	2021	2020
Accrued interest and penalties related to unrecognized tax benefits	$17	$17	$18
Loss/(income) recognized in income tax expense related to interest and penalties	$1	($2)	$2