INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

Earnings before income taxes and the provision for income taxes are presented in the following table.

	Year Ended December 31,
(in millions)	2024		2023		2022
Earnings (loss) before income taxes:
U.S.1	$	(303)	$	(316)	$	(40)
Non-U.S.1	842		1,307		953
Total	$	539	$	991	$	913
Provision for income taxes:
Current:
Federal	$	27	$	42	$	49
State	1		8		7
Foreign	239		299		233
Total current expense	267		349		289
Deferred:
Federal	(198)		(85)		(54)
State	(5)		—		(8)
Foreign	47		25		(32)
Total deferred benefit	(156)		(60)		(94)
Total provision for income taxes	$	111	$	289	$	195

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1 In 2023, the U.S. loss before income taxes included the realized and unrealized loss on debt and equity securities of $174 million that was primarily related to the Company’s investment in Wolfspeed convertible debt securities that was sold during the year.

Schedule of Effective Income Tax Rate Reconciliation

The following table provides a reconciliation of tax expense based on the U.S. statutory tax rate to final tax expense.

	Year Ended December 31,
(in millions)	2024		2023		2022
Income taxes at U.S. statutory rate of 21%	$	114	$	209	$	192
Increases (decreases) resulting from:
Impairment of goodwill	151		—		—
Net tax on remittance of foreign earnings	38		45		36
Foreign rate differentials	14		20		57
Valuation allowance adjustments, net	23		186		21
Other permanent differences	17		18		14
Changes in accounting methods and filing positions	(10)		(18)		(15)
State taxes, net of federal benefit	(6)		6		(3)
Affiliates' earnings	(6)		(7)		(6)
Foreign derived intangible income deduction	(11)		(23)		(23)
Impact of tax law and rate change	(9)		(1)		1
U.S. tax on foreign earnings	24		18		10
Enhanced research and development deductions	(29)		(35)		(33)
Tax credits	(34)		(21)		(15)
Deferred tax impact of intra-group transactions	(36)		(70)		—
Tax holidays	(46)		(35)		(38)
Reserve adjustments, settlements and claims	(99)		(15)		13
Other, net	16		12		(16)
Provision for income taxes, as reported	$	111	$	289	$	195

Schedule of Unrecognized Tax Benefits Roll Forward

A roll forward of the Company’s total gross unrecognized tax benefits is presented below:

(in millions)	2024		2023		2022
Balance, January 1	$	161	$	172	$	181
Additions based on tax positions related to current year	9		15		19
Reductions for closure of tax audits and settlements	—		(5)		(9)
Reductions for tax positions of prior years	(1)		(11)		(7)
Reductions for lapse in statute of limitations	(67)		(10)		—
Translation adjustment	(7)		—		(12)
Balance, December 31	$	95	$	161	$	172

Schedule of Tax Jurisdiction

The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows:

Tax jurisdiction	Years no longer subject to audit	Tax jurisdiction	Years no longer subject to audit
U.S. Federal	2016 and prior	Luxembourg	2017 and prior
China	2018 and prior	Mexico	2017 and prior
France	2020 and prior	Poland	2016 and prior
Germany	2015 and prior	South Korea	2017 and prior
Hungary	2018 and prior	United Kingdom	2019 and prior
Japan	2023 and prior

Schedule of Deferred Tax Assets (Liabilities)

The components of deferred tax assets and liabilities consist of the following:

	December 31,
(in millions)	2024		2023
Deferred tax assets:
Net operating loss and capital loss carryforwards	$	305	$	359
Research and development capitalization	291		211
Employee compensation	45		43
State tax credits	38		23
Warranty	30		20
Unrecognized tax benefits	25		27
Foreign tax credits	9		—
Pension and other postemployment benefits	—		4
Other comprehensive loss	—		3
Other	126		97
Total deferred tax assets	$	869	$	787
Valuation allowance	(325)		(310)
Net deferred tax asset	$	544	$	477
Deferred tax liabilities:
Fixed assets	(107)		(121)
Goodwill and intangible assets	(100)		(135)
Unremitted foreign earnings	(95)		(115)
Other comprehensive income	(35)		—
Pension and other postemployment benefits	(4)		—
Unrealized gain on equity securities	(2)		(2)
Other	(9)		(7)
Total deferred tax liabilities	$	(352)	$	(380)
Net deferred taxes	$	192	$	97