Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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)	2024	2023	2022
Current
U.S. federal	$67	$95	$136
U.S. state and local	15	14	20
Foreign	490	506	315
Total current income tax expense	$572	$615	$471
Deferred
U.S. federal	($2)	($156)	($77)
U.S. state and local	(8)	(15)	(7)
Foreign	(87)	(16)	(67)
Total deferred income tax benefit	($97)	($187)	($151)
Total income tax expense	$475	$428	$320

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:

	2024		2023		2022
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Changes in rate due to:
Taxes on non-U.S. earnings	4.8		4.3		3.6
Change in valuation allowance reserves	3.5		3.6		0.6
Other foreign tax effects	(4.7)		(2.8)		(1.7)
Pillar 2 global minimum tax	0.8		—		—
Impairment and other related charges, net	(0.2)		2.0		1.4
Uncertain tax positions	1.2		(1.8)		(0.3)
U.S. tax cost/(benefit) on foreign operations	0.9		(0.9)		(0.2)
U.S. tax incentives	(0.8)		(0.8)		(1.1)
Tax benefits from equity awards	—		(0.2)		(0.3)
U.S. state and local taxes	0.3		—		0.7
Other	(1.2)		0.9		(0.1)
Effective income tax rate	25.6	%	25.3	%	23.6	%

Net deferred income tax assets and liabilities

($ in millions)	2024	2023
Deferred income tax assets related to
Employee benefits	$215	$266
Contingent and accrued liabilities	105	61
Operating loss and other carry-forwards	389	270
Operating lease liabilities	144	187
Research and development amortization	259	213
Other	280	198
Valuation allowance	(327)	(240)
Total	$1,065	$955
Deferred income tax liabilities related to
Property	$268	$220
Intangibles	607	679
Employee benefits	39	47
Operating lease right-of-use assets	148	194
Other	105	43
Total	$1,167	$1,183
Deferred income tax liabilities – net	($102)	($228)

Schedule of Unrecognized Tax Benefits Roll Forward

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

($ in millions)	2024	2023	2022
January 1	$121	$145	$158
Current year tax positions - additions	8	16	19
Prior year tax positions - additions	43	33	2
Prior year tax positions - reductions	(1)	(14)	(2)
Statute of limitations expirations	(20)	(9)	(23)
Settlements	(6)	(51)	(3)
Foreign currency translation	(4)	1	(6)
December 31	$141	$121	$145

Unrecognized Tax Benefits

Interest and penalties

($ in millions)	2024	2023	2022
Accrued interest and penalties related to unrecognized tax benefits	$11	$14	$17
(Income)/loss recognized in income tax expense related to interest and penalties	($2)	($2)	$1

Summary of Operating Loss Carryforwards

($ in millions)	2024	2023	Expiration
Available net operating loss carryforwards, tax effected:
Indefinite expiration	$85	$86	NA
Definite expiration	150	72	2025-2044
Total	$235	$158
Income tax credit carryforwards	$112	$108	2025-2034