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Income taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income taxes | 15. Income taxes The summary of the Income from continuing operations before income tax expense for the years ended December 31 was:
in $ millions | 2023 | 2022 | 2021
Income |  |  |
U.S. | 2,729 | 2,225 | 1,596
Non-U.S. | 1,285 | 1,236 | 1,506
Total income | 4,014 | 3,461 | 3,102
The summary of the Income tax expense from continuing operations for the years ended December 31 was:
in $ millions | 2023 | 2022 | 2021
Current tax: |  |  |
U.S. - Federal | 632 | 443 | 304
U.S. - State | 67 | 87 | 47
Non-U.S. | 290 | 221 | 205
Total current tax expense | 989 | 751 | 556
Deferred tax: |  |  |
U.S. - Federal | (28) | 11 | 54
U.S. - State | (12) | (6) | 11
Non-U.S. | (24) | 6 | 29
Total deferred tax (benefit) expense | (64) | 11 | 94
Total income tax expense | 925 | 762 | 650
While the Company is domiciled in Ireland, due to the percentage of global operations subject to tax in the United States, the Company uses the U.S. Federal statutory tax rate in the reconciliation of the effective income tax rate. The reconciliation of the applicable U.S. Federal income tax rate to the effective income tax rates was:
in $ millions | 2023 | 2022 | 2021
U.S. statutory rate | 843 | 727 | 651
State tax, net of federal tax benefit | 38 | 73 | 61
Tax rate differentials | (11) | (6) | 4
Uncertain tax positions | 87 | 60 | 75
Tax credits | (125) | (96) | (107)
Non-deductible goodwill impairment | 75 | – | –
Other | 18 | 4 | (34)
Total tax expense | 925 | 762 | 650
Effective income tax rate | 23 | % | 22 | % | 21 | %
The significant components of the deferred tax assets and liabilities at December 31 were:
in $ millions | 2023 | 2022
Deferred tax assets: |  |
Company retirement benefit plans | 38 | 26
Revaluation of derivative financial instruments to fair value | 2 | –
Tax losses, credits and interest deduction carryforwards | 1,052 | 855
Share-based compensation | 41 | 31
Accrued expenses | 420 | 350
Lease liabilities | 292 | 263
Total deferred tax assets | 1,845 | 1,525
Less: valuation allowances | (914) | (737)
Total deferred tax assets after valuation allowances | 931 | 788
Deferred tax liabilities: |  |
Investment in subsidiaries | 155 | 159
Depreciation, depletion and amortization | 3,109 | 3,165
Leased right-of-use assets | 274 | 250
Rolled-over capital gains | 21 | 20
Other | 12 | –
Total deferred tax liabilities | 3,571 | 3,594
Total net deferred tax liabilities | 2,640 | 2,806
The net deferred tax assets and liabilities that are included in the Consolidated Balance Sheets at December 31 were:
in $ millions | 2023 | 2022
Deferred income taxes, noncurrent assets | (98) | (79)
Deferred income taxes, noncurrent liabilities | 2,738 | 2,885
Total net deferred tax liabilities | 2,640 | 2,806
At December 31, 2023, the Company had gross loss carryforwards of $1,295 million related to foreign operations and $32 million of state net operating loss carryforwards. $332 million of certain foreign and state loss carryforwards have various expiration dates ranging from 2024 to 2050; $931 million do not expire based on current tax legislation. The Company had gross interest deduction carryforwards of $2,115 million related to foreign operations. $74 million of certain interest carryforwards have various expiration dates ranging from 2024 to 2044, $2,041 million do not expire based on current tax legislation. The summary of the change in valuation allowance at December 31 was:
in $ millions | 2023 | 2022 | 2021
Balance at January 1 | 737 | 578 | 507
Provision for income taxes | 151 | 203 | 102
Foreign currency and other | 26 | (44) | (31)
Balance at December 31 | 914 | 737 | 578
The Company maintains a valuation allowance on net operating losses and other deferred tax assets if, based on the weight of available evidence, it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. At December 31, 2023 and December 31, 2022, the Company has a valuation allowance on net deferred tax assets of $914 million and $737 million, respectively. For the year ended December 31, 2023, the valuation allowance increased due to an increase in interest deduction carryforwards. A deferred tax liability has been recognized in respect of any undistributed earnings in which the Company is not permanently reinvested. The Company has $16.4 billion of undistributed earnings that are considered permanently reinvested at December 31, 2023, for which no deferred tax liabilities have been recognized. It is not practicable to estimate the amount of tax that would be paid if there was a distribution of these earnings. Participation exemptions and tax credits are available in the majority of jurisdictions in which the Company operates. The reconciliation of the changes in the unrecognized tax benefits at December 31 was:
in $ millions | 2023 | 2022 | 2021
Balance at January 1 | 576 | 547 | 536
Increases related to prior periods | 9 | 4 | 2
Decreases related to prior periods | (12) | (8) | (21)
Increases related to current period | 148 | 130 | 104
Decreases related to settlements with taxing authorities and lapse of statute of limitations | (68) | (67) | (56)
Foreign currency and other | 12 | (30) | (18)
Balance at December 31 | 665 | 576 | 547
The Company files income tax returns in Ireland, the United States, the United Kingdom, Germany, Canada, and other various foreign jurisdictions and is subject to ongoing examination by tax authorities throughout the world. In general, the Company is no longer subject to significant income tax examinations by tax authorities in the jurisdictions noted for years before 2016. The Company believes that its income tax reserves are adequately maintained taking into consideration both the technical merits of its tax return positions and ongoing developments in its income tax audits. However, the final determination of the Company's tax return positions, if audited, is uncertain and therefore there is a possibility that the outcomes of such events could cause the Company’s estimate to change in the future. No single position is expected to generate a significant increase or decrease to the liability for unrecognized tax benefits within 12 months of the reporting date. At December 31, 2023 and December 31, 2022, the unrecognized tax benefits that, if recognized, would impact the effective tax rate were $627 million and $537 million, respectively. The Company’s policy is to accrue interest and penalties related to potential underpayment of income taxes within the provision for income taxes. At December 31, 2023 and December 31, 2022, the Company had accrued interest of $84 million and $68 million, respectively. At December 31, 2023, December 31, 2022, and December 31, 2021, the interest and penalties included in income tax expense was $14 million, $5 million, and $12 million, respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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