Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2023

Taxes on Income

Schedule of amount of earnings (loss) before income taxes

	Years Ended December 31,
($ in millions)	2023		2022		2021
U.S.	$	258	$	496	$	146
Non-U.S.		556		388		862
	$	814	$	884	$	1,008

Schedule of provision (benefit) for income tax expense

	Years Ended December 31,
($ in millions)	2023		2022		2021
Current
U.S.	$	10	$	9	$	(20)
State and local		11		18		8
Non-U.S.		169		134		133
Total current		190		161		121
Deferred
U.S.		(74)		90		(7)
State and local		6		7		(4)
Non-U.S.		1		(99)		46
Total deferred		(67)		(2)		35
Tax provision (benefit)	$	123	$	159	$	156

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)	2023			2022			2021
Statutory U.S. federal income tax	$	171		$	186		$	212
Increase (decrease) due to:
Non-U.S. tax rate differences including tax holidays		(38)			(21)			(32)
Non-U.S. tax law and rate changes		3			12			43
Currency exchange (gain) loss on revaluation of deferred tax balances		(13)			(8)			4
Global intangible low-taxed income (GILTI)		4			5			18
Permanent differences on business dispositions or impairments		—			(12)			4
U.S. state and local taxes, net		13			20			4
U.S. taxes on non-U.S. earnings, net of tax deductions and credits		(38)			4			4
U.S. research and development credits		(67)			(28)			(50)
Uncertain tax positions, including interest		(4)			(10)			(19)
Change in valuation allowances		106			(4)			(3)
Equity compensation related impacts		(6)			14			(10)
U.S. CARES Act		—			—			(10)
Other, net		(8)			1			(9)
Provision (benefit) for taxes	$	123		$	159		$	156
Effective tax rate expressed as a percentage of pretax earnings		15.1	%		18.0	%		15.5	%

Schedule of significant components of deferred tax assets and liabilities

	December 31,
($ in millions)	2023		2022
Deferred tax assets:
Deferred compensation	$	81	$	74
Accrued employee benefits		71		66
Accrued pensions		90		74
Capitalized research and development		289		113
Net operating losses, tax credits and other tax attributes		640		413
Deferred interest		178		105
Operating lease liabilities		102		93
Other		134		180
Total deferred tax assets		1,585		1,118
Valuation allowance		(386)		(275)
Net deferred tax assets		1,199		843
Deferred tax liabilities:
Property, plant and equipment		(620)		(574)
Goodwill and other intangible assets		(448)		(484)
Pension assets		(11)		(89)
Deferred revenue (a)		(241)		—
Operating lease right of use assets		(96)		(91)
Other		(90)		(72)
Total deferred tax liabilities		(1,506)		(1,310)
Net deferred tax asset (liability)	$	(307)	$	(467)

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

	December 31,
($ in millions)	2023		2022
Other assets	$	114	$	73
Deferred taxes		(421)		(540)
Net deferred tax asset (liability)	$	(307)	$	(467)

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

($ in millions)	2023		2022		2021
Balance at January 1	$	32	$	36	$	55
Additions for tax positions of prior years		1		5		—
Reductions for settlements		(5)		—		—
Reductions due to lapse of statute of limitations		—		(7)		(17)
Reductions due to business dispositions		—		(1)		—
Effect of currency exchange rates		—		(1)		(2)
Balance at December 31	$	28	$	32	$	36