Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023	2022	2021
Current
U.S. federal	$102	$137	$25
U.S. state and local	16	20	13
Foreign	504	325	301
Total current income tax expense	$622	$482	$339
Deferred
U.S. federal	($153)	($79)	$12
U.S. state and local	(14)	(7)	3
Foreign	(16)	(71)	20
Total deferred income tax (benefit)/expense	($183)	($157)	$35
Total income tax expense	$439	$325	$374

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:

	2023		2022		2021
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Changes in rate due to:
Taxes on non-U.S. earnings	4.2		3.6		2.7
Change in valuation allowance reserves	3.4		0.6		—
Other foreign tax effects	(2.7)		(1.6)		(0.4)
Impairment and other related charges, net	1.9		1.4		—
Uncertain tax positions	(1.7)		(0.4)		(1.4)
U.S. tax benefit on foreign operations	(0.9)		(0.4)		(1.6)
U.S. tax incentives	(0.8)		(1.0)		(0.6)
Tax benefits from equity awards	(0.2)		(0.3)		(0.3)
U.S. state and local taxes	—		0.7		0.8
Other	0.9		(0.1)		0.4
Effective income tax rate	25.1	%	23.5	%	20.6	%

Net deferred income tax assets and liabilities

($ in millions)	2023	2022
Deferred income tax assets related to
Employee benefits	$273	$275
Contingent and accrued liabilities	61	67
Operating loss and other carry-forwards	279	218
Operating lease liabilities	203	203
Research and development amortization	214	149
Other	201	168
Valuation allowance	(249)	(182)
Total	$982	$898
Deferred income tax liabilities related to
Property	$223	$223
Intangibles	696	720
Employee benefits	47	81
Operating lease right-of-use assets	207	206
Other	44	74
Total	$1,217	$1,304
Deferred income tax liabilities – net	($235)	($406)

Summary of Operating Loss Carryforwards

($ in millions)	2023	2022	Expiration
Available net operating loss carryforwards, tax effected:
Indefinite expiration	$86	$84	NA
Definite expiration	72	66	2024-2043
Total	$158	$150
Income tax credit carryforwards	$108	$89	2024-2043

Unrecognized Tax Benefits

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

($ in millions)	2023	2022	2021
January 1	$145	$158	$175
Current year tax positions - additions	16	19	12
Prior year tax positions - additions	33	2	10
Prior year tax positions - reductions	(14)	(2)	(2)
Statute of limitations expirations	(9)	(23)	(19)
Settlements	(51)	(3)	(21)
Foreign currency translation	1	(6)	3
December 31	$121	$145	$158

Interest and penalties

($ in millions)	2023	2022	2021
Accrued interest and penalties related to unrecognized tax benefits	$14	$17	$17
(Income)/loss recognized in income tax expense related to interest and penalties	($2)	$1	($2)