Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2022

Taxes on Income

Schedule of amount of earnings (loss) before income taxes

	Years Ended December 31,
($ in millions)	2022		2021		2020
U.S.	$	496	$	146	$	196
Non-U.S.		388		862		491
	$	884	$	1,008	$	687

Schedule of provision (benefit) for income tax expense

	Years Ended December 31,
($ in millions)	2022		2021		2020
Current
U.S.	$	9	$	(20)	$	(33)
State and local		18		8		3
Non-U.S.		134		133		112
Total current		161		121		82
Deferred
U.S.		90		(7)		(44)
State and local		7		(4)		(5)
Non-U.S.		(99)		46		66
Total deferred		(2)		35		17
Tax provision (benefit)	$	159	$	156	$	99

Schedule of income tax provision recorded within the consolidated statements of earnings which differ from the provisions determined by applying the U.S. statutory tax rate to pretax earnings

	Years Ended December 31,
($ in millions)	2022			2021			2020
Statutory U.S. federal income tax	$	186		$	212		$	144
Increase (decrease) due to:
Non-U.S. tax rate differences including tax holidays		(25)			(32)			2
Non-U.S. tax law and rate changes		12			43			18
U.S. tax reform (a)		—			(2)			(9)
Currency exchange (gain) loss on revaluation of Brazilian deferred tax balances		(4)			4			23
Global intangible low-taxed income (GILTI)		5			18			2
Permanent differences on business dispositions or impairments		(12)			4			20
U.S. state and local taxes, net		20			4			(2)
U.S. taxes on non-U.S. earnings, net of tax deductions and credits		4			4			5
U.S. research and development credits		(28)			(50)			(39)
Uncertain tax positions, including interest		(10)			(19)			(14)
Change in valuation allowances		(4)			(3)			17
Equity compensation related impacts		14			(10)			(47)
U.S. CARES Act		—			(10)			(16)
Other, net		1			(7)			(5)
Provision (benefit) for taxes	$	159		$	156		$	99
Effective tax rate expressed as a percentage of pretax earnings		18.0	%		15.5	%		14.4	%

(a) Includes enacted regulatory changes during the year in connection with the U.S. Tax Cuts and Jobs Act (TCJA) signed into law in 2017.

Schedule of significant components of deferred tax assets and liabilities

	December 31,
($ in millions)	2022		2021
Deferred tax assets:
Deferred compensation	$	74	$	127
Accrued employee benefits		66		79
Accrued pensions		74		113
Capitalized research and development		113		21
Net operating losses, non-U.S. tax credits and other tax attributes		413		523
Deferred interest		105		102
Operating lease liabilities		93		85
Other		180		159
Total deferred tax assets		1,118		1,209
Valuation allowance		(275)		(303)
Net deferred tax assets		843		906
Deferred tax liabilities:
Property, plant and equipment		(574)		(509)
Goodwill and other intangible assets		(484)		(543)
Pension assets		(89)		(146)
Operating lease right of use assets		(91)		(87)
Other		(72)		(160)
Total deferred tax liabilities		(1,310)		(1,445)
Net deferred tax asset (liability)	$	(467)	$	(539)

Schedule of net deferred tax asset (liability) included in consolidated balance sheets

	December 31,
($ in millions)	2022		2021
Other assets	$	73	$	126
Deferred taxes		(540)		(665)
Net deferred tax asset (liability)	$	(467)	$	(539)

Roll forward of unrecognized tax benefits related to uncertain income tax positions

($ in millions)	2022		2021		2020
Balance at January 1	$	36	$	55	$	63
Additions based on tax positions related to the current year		—		—		1
Additions for tax positions of prior years		5		—		—
Reductions due to lapse of statute of limitations		(7)		(17)		(12)
Reductions due to business dispositions		(1)		—		—
Effect of currency exchange rates		(1)		(2)		3
Balance at December 31	$	32	$	36	$	55