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Income taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income before income taxes is comprised of the following components:


	For Years Ended December 31,
	2023		2022		2021
U.S.	$	6,445	$	9,122	$	7,998
Non-U.S.	973		910		921
Total	$	7,418	$	10,032	$	8,919

Provision for income taxes

Provision for income taxes is comprised of the following components:


	For Years Ended December 31,
	2023						2022						2021
	Current		Deferred		Total		Current		Deferred		Total		Current		Deferred		Total
U.S. federal	$	943	$	(277)	$	666	$	1,235	$	(223)	$	1,012	$	948	$	(23)	$	925
Non-U.S.	240		(22)		218		212		32		244		169		38		207
U.S. state	24		—		24		27		—		27		18		—		18
Total	$	1,207	$	(299)	$	908	$	1,474	$	(191)	$	1,283	$	1,135	$	15	$	1,150

Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate

Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:


	For Years Ended December 31,
	2023		2022		2021
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
Foreign derived intangible income	(6.8)		(7.0)		(6.1)
R&D tax credit	(1.3)		(0.9)		(0.9)
Stock compensation	(1.0)		(0.7)		(1.5)
Changes in uncertain tax positions	—		0.1		(0.2)
Other	0.3		0.3		0.6
Effective tax rate	12.2	%	12.8	%	12.9	%

Primary components of deferred tax assets and liabilities

The primary components of deferred tax assets and liabilities are as follows:


	December 31,
	2023		2022
Deferred tax assets:
Capitalized R&D	$	750	$	380
Accrued expenses	236		182
Deferred loss and tax credit carryforwards	205		201
Stock compensation	163		132
Inventories and related reserves	104		88
Retirement costs for defined benefit and retiree health care	37		43
Other	47		36
Total deferred tax assets, before valuation allowance	1,542		1,062
Valuation allowance	(198)		(189)
Total deferred tax assets, after valuation allowance	1,344		873
Deferred tax liabilities:
Property, plant and equipment	(592)		(410)
International earnings	(33)		(35)

Acquisition-related intangibles and fair-value adjustments	(14)		(13)
Other	(11)		(8)
Total deferred tax liabilities	(650)		(466)
Net deferred tax asset	$	694	$	407

The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:


	December 31,
	2023		2022
Deferred tax assets	$	757	$	473
Deferred tax liabilities	(63)		(66)
Net deferred tax asset	$	694	$	407

Summary of uncertain tax positions

The changes in the total amounts of uncertain tax positions are as follows:


	2023		2022		2021
Balance, January 1	$	82	$	69	$	89
Additions based on tax positions related to the current year	3		3		2
Additions for tax positions of prior years	—		10		7
Reductions for tax positions of prior years	(3)		—		(6)
Settlements with tax authorities	—		—		(23)
Expiration of the statute of limitations for assessing taxes	—		—		—
Balance, December 31	$	82	$	82	$	69

Interest expense recognized in the year ended December 31	$	(9)	$	(1)	$	(5)

Interest payable as of December 31	$	10	$	3	$	13