Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2024

Taxes on Income

Schedule of amount of earnings (loss) before income taxes

	Years Ended December 31,
($ in millions)	2024		2023		2022
U.S.	$	(8)	$	58	$	326
Non-U.S.		543		556		387
	$	535	$	614	$	713

Schedule of provision (benefit) for income tax expense

	Years Ended December 31,
($ in millions)	2024		2023		2022
Current
U.S.	$	5	$	(1)	$	—
State and local		(6)		4		10
Non-U.S.		184		169		134
Total current		183		172		144
Deferred
U.S.		6		(32)		84
State and local		(11)		5		9
Non-U.S.		(45)		1		(99)
Total deferred		(50)		(26)		(6)
Tax provision (benefit)	$	133	$	146	$	138

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)	2024			2023			2022
Statutory U.S. federal income tax	$	112		$	129		$	150
Increase (decrease) due to:
Non-U.S. tax rate differences including tax holidays		3			(38)			(21)
Non-U.S. tax law and rate changes		1			3			12
Currency exchange (gain) loss on revaluation of deferred tax balances		31			(13)			(8)
Global intangible low-taxed income (GILTI)		7			6			2
Permanent differences on business dispositions or impairments		—			—			(12)
U.S. state and local taxes, net		(11)			7			14
U.S. taxes on non-U.S. earnings, net of tax deductions and credits		(1)			(38)			6
Uncertain tax positions, including interest		(2)			(4)			(10)
Change in valuation allowances		(3)			106			(4)
Equity compensation related impacts		(3)			(6)			13
Other, net		(1)			(6)			(4)
Provision (benefit) for taxes	$	133		$	146		$	138
Effective tax rate expressed as a percentage of pretax earnings		24.9	%		23.8	%		19.4	%

Schedule of significant components of deferred tax assets and liabilities

	December 31,
($ in millions)	2024		2023
Deferred tax assets:
Deferred compensation	$	68	$	81
Accrued employee benefits		62		71
Accrued pensions		39		90
Capitalized research and development		235		289
Net operating losses, tax credits and other tax attributes		345		640
Deferred interest		143		178
Operating lease liabilities		75		102
Other		113		134
Total deferred tax assets		1,080		1,585
Valuation allowance		(370)		(386)
Net deferred tax assets		710		1,199
Deferred tax liabilities:
Property, plant and equipment		(450)		(620)
Goodwill and other intangible assets		(406)		(448)
Deferred revenue		(190)		(241)
Operating lease right of use assets		(71)		(96)
Other		(124)		(101)
Total deferred tax liabilities		(1,241)		(1,506)
Net deferred tax asset (liability)	$	(531)	$	(307)

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

	December 31,
($ in millions)	2024		2023
Other assets	$	63	$	114
Deferred taxes		(594)		(421)
Net deferred tax asset (liability)	$	(531)	$	(307)

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

($ in millions)	2024		2023		2022
Balance at January 1	$	28	$	32	$	36
Additions for tax positions of prior years		—		1		5
Reductions for settlements		—		(5)		—
Reductions due to lapse of statute of limitations		(2)		—		(7)
Reductions due to business dispositions		—		—		(1)
Effect of currency exchange rates		—		—		(1)
Balance at December 31	$	26	$	28	$	32