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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Components of Income from Operations before Provision for Income Taxes The components of the income before income taxes for the Company’s domestic and foreign operations for the years ended December 31 are provided below:
For the year ended
December 31,
In millions202120202019
Domestic$253 $78 $118 
Foreign484 479 329 
Income before income taxes$737 $557 $447 
Consolidated Provision for Income Taxes The consolidated provision for income taxes included in the Consolidated Statements of Income consisted of the following:
For the year ended
December 31,
In millions202120202019
Current tax expense (benefit)   
Federal$(81)$6 $5 
State27 17 1 
Foreign138 93 141 
 84 116 147 
Deferred tax expense (benefit)   
Federal87 36 20 
State10 (2)3 
Foreign(9)(5)(50)
 88 29 (27)
Total provision$172 $145 $120 
Reconciliation of Income Tax Rate A reconciliation of the United States federal statutory income tax rate to the effective income tax rate on operations for the years ended December 31 is provided below:
For the year ended
December 31,
In millions202120202019
U.S. federal statutory rate21.0 %21.0 %21.0 %
State taxes0.3 2.6 0.8 
Foreign3.3 4.4 (0.4)
Research and development credit(0.8)(1.3)(1.7)
U.S. net operating loss carryback(3.4)— — 
Changes in valuation allowance3.0 (2.0)3.5 
U.S. tax reform provision 0.7 1.3 2.0 
Transaction costs related to acquisitions0.1 — 1.0 
Other, net(1.0)— 0.7 
Effective rate23.2 %26.0 %26.9 %
Components of Deferred Tax Assets and Liabilities Components of deferred tax assets and liabilities were as follows:
 December 31,
In millions20212020
Deferred income tax assets:  
Accrued expenses and reserves$44 $39 
Warranty reserve53 51 
Deferred compensation/employee benefits62 43 
Right-of-use asset76 70 
Pension and postretirement obligations24 26 
Property, plant & equipment— 48 
Inventory46 45 
Net operating loss carry forwards102 83 
Other102 46 
Gross deferred income tax assets509 451 
Less: Valuation allowance(64)(42)
Total deferred income tax assets445 409 
Deferred income tax liabilities:  
Property, plant & equipment85 — 
Right-of-use liability78 69 
Intangibles503 444 
Total deferred income tax liabilities666 513 
Net deferred income tax liability$221 $104 
Liability for Income Taxes Associated with Uncertain Tax Positions A reconciliation of the beginning and ending amount of the liability for income taxes associated with unrecognized tax benefits follows:
In millions202120202019
Gross liability for unrecognized tax benefits at beginning of year$16 $17 $9 
Gross increases - unrecognized tax benefits in prior periods19 4 10 
Gross decreases - audit settlement during year(1)(5)— 
Gross decreases - expiration of audit statute of limitations(2)— (2)
Gross liability for unrecognized tax benefits at end of year$32 $16 $17