Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

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)	2025	2024	2023
Current
U.S. federal	$62	$67	$95
U.S. state and local	4	15	14
Foreign	419	490	506
Total current income tax expense	$485	$572	$615
Deferred
U.S. federal	($30)	($2)	($156)
U.S. state and local	(3)	(8)	(15)
Foreign	6	(87)	(16)
Total deferred income tax benefit	($27)	($97)	($187)
Total income tax expense	$458	$475	$428

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

	2025
($ in millions, except percentages)	Amount	Percent
U.S. federal income tax rate	$429	21.0	%
Foreign tax effects
Mexico
Tax rate differential	55	2.7
Nontaxable inflationary effect	(23)	(1.1)
Other adjustments	34	1.6
Singapore
Nontaxable gain on sale	(45)	(2.2)
Other adjustments	(2)	(0.1)
Switzerland
Nondeductible loss on sale	45	2.2
Other adjustments	(11)	(0.6)
Other foreign jurisdictions	61	3.0
Tax credits	(33)	(1.6)
Changes in unrecognized tax benefits	(39)	(1.9)
Other adjustments
Return to provision	(25)	(1.2)
Other adjustments	12	0.6
Effective income tax rate	$458	22.4	%

The following table is a reconciliation of the statutory U.S. corporate federal income tax rate to the Company’s effective tax rate for 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09:

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

Schedule of Cash Paid for Lease Liabilities and Right-of-Use Assets Obtained in Exchange for Lease Obligations

($ in millions)	2025	2024	2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows paid for operating leases	$168	$157	$155
Operating cash flows paid for finance leases	$1	$1	$1
Financing cash flows paid for finance leases	$2	$2	$2
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$109	$184	$119
Finance leases	$2	$1	$1

Lease terms and discount rates as of December 31, 2025, 2024 and 2023 were as follows:

The following table presents the net income taxes paid/(net refunds received) by the Company for 2025 in accordance with the guidance in ASU 2023-09:

($ in millions)	2025
Federal(1)	($5)
State	7
Foreign
Mexico	205
China	56
France	25
Netherlands	25
Switzerland	(27)
Other	152
Total taxes paid, net of refunds	$438

(1)Net refund received due to overpayment of prior year tax liability related to portfolio optimization actions in 2024 and other items.

Net deferred income tax assets and liabilities

($ in millions)	2025	2024
Deferred income tax assets related to
Employee benefits	$203	$215
Contingent and accrued liabilities	98	105
Operating loss and other carry-forwards	324	389
Operating lease liabilities	145	144
Research and development amortization	304	259
Other	258	280
Valuation allowance	(258)	(327)
Total	$1,074	$1,065
Deferred income tax liabilities related to
Property	$201	$268
Intangibles	643	607
Employee benefits	43	39
Operating lease right-of-use assets	150	148
Other	13	105
Total	$1,050	$1,167
Deferred income tax assets/(liabilities) – net	$24	($102)

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)	2025	2024	2023
January 1	$141	$121	$145
Current year tax positions - additions	21	8	16
Prior year tax positions - additions	13	43	33
Prior year tax positions - reductions	—	(1)	(14)
Statute of limitations expirations	(15)	(20)	(9)
Settlements	(14)	(6)	(51)
Resolution of tax matter(1)	(44)	—	—
Foreign currency translation	9	(4)	1
December 31	$111	$141	$121

(1)In 2025, the Company recorded a net charge related to the anticipated resolution of an outstanding tax matter. The Company expects to pay incremental income taxes and non-income taxes in the impacted taxing jurisdiction related to the matter. In connection with this matter, the Company reduced its provision for uncertain tax positions.

Unrecognized Tax Benefits

Interest and penalties

($ in millions)	2025	2024	2023
Accrued interest and penalties related to unrecognized tax benefits	$11	$11	$14
(Income)/loss recognized in income tax expense related to interest and penalties	($1)	($2)	($2)

Summary of Operating Loss Carryforwards

($ in millions)	2025	2024	Expiration
Available net operating loss carryforwards, tax effected:
Indefinite expiration	$95	$85	NA
Definite expiration	95	150	2026-2045
Total	$190	$235
Income tax credit carryforwards	$128	$112	2026-2035