Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Provision for Federal & Foreign Income Tax Expense

Federal and foreign income tax expense for continuing operations consisted of the following (in millions):

	2022		2021		2020
Federal income tax expense (benefit):
Current	$	1,618	$	1,325	$	1,292
Deferred	(776)		(194)		21
Total federal income tax expense	842		1,131		1,313
Foreign income tax expense (benefit):
Current	87		93		50
Deferred	19		11		(16)
Total foreign income tax expense	106		104		34
Total federal and foreign income tax expense	$	948	$	1,235	$	1,347

Reconciliation of Income Tax Expense Computed Using U.S. Statutory Federal Tax Rate to Actual Income Tax Expense

A reconciliation of the U.S. federal statutory income tax expense to actual income tax expense for continuing operations is as follows (in millions):

	2022				2021				2020
	Amount		Rate		Amount		Rate		Amount		Rate
Income tax expense at the U.S. federal statutory tax rate	$	1,403	21.0	%	$	1,585	21.0	%	$	1,729	21.0	%
Research and development tax credit	(178)		(2.7)		(118)		(1.6)		(97)		(1.2)
Foreign derived intangible income deduction	(176)		(2.6)		(170)		(2.3)		(170)		(2.1)
Tax deductible dividends	(67)		(1.0)		(65)		(0.9)		(64)		(0.8)
Excess tax benefits for stock-based payment awards	(42)		(0.6)		(28)		(0.4)		(52)		(0.6)
Other, net	8		0.1		31		0.6		1		0.1
Income tax expense	$	948	14.2	%	$	1,235	16.4	%	$	1,347	16.4	%

Schedule of Unrecognized Tax Benefits Roll Forward

The change in unrecognized tax benefits were as follows (in millions):

	2022		2021		2020
Balance at January 1	$	69	$	50	$	56
Additions based on tax positions related to the current year	1,572		23		14
Additions for tax positions of prior years	5		30		1
Reductions for tax positions of prior years	(2)		(19)		(20)
Settlements with tax authorities	(23)		(14)		—
Other, net	1		(1)		(1)
Balance at December 31	$	1,622	$	69	$	50

Components of Federal and Foreign Deferred Tax Assets and Liabilities

The primary components of our federal and foreign deferred income tax assets and liabilities at December 31 were as follows (in millions):

	2022		2021
Deferred tax assets related to:
Pensions	$	1,340	$	1,985
Accrued compensation and benefits	718		957
Contract accounting methods	510		470
Research and development expenditures	2,268		—
Foreign company operating losses and credits	20		40
Other (a)	471		473
Valuation allowance	(31)		(15)
Deferred tax assets, net	5,296		3,910
Deferred tax liabilities related to:
Goodwill and intangible assets	449		401
Property, plant and equipment	503		518
Exchanged debt securities and other (a)	605		709
Deferred tax liabilities	1,557		1,628
Net deferred tax assets	$	3,739	$	2,282

(a)Includes deferred tax assets and liabilities related to lease liability and ROU asset.