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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of income before income taxes

Income before income taxes consisted of the following (in millions):

Year Ended December 31,			2022			2021			2020
United States			$	3,452		$	3,538		$	3,149
International			8,234			8,887			6,600
Total			$	11,686		$	12,425		$	9,749

Schedule of income tax expense (benefit)

Income taxes consisted of the following (in millions):

			United States			State and Local			International						Total
2022
Current			$	468		$	118		$	1,651					$	2,237
Deferred			(121)			(4)			3						(122)
2021
Current			$	243		$	106		$	1,378					$	1,727
Deferred			229			(10)			675			1			894
2020
Current			$	296		$	396		$	1,307					$	1,999
Deferred			(220)			21			181						(18)

1 Includes net tax expense of $195 million related to changes in tax laws in certain foreign jurisdictions.

Reconciliation of the statutory U.S. federal tax rate and effective tax rates

A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows:

Year Ended December 31,			2022			2021						2020
Statutory U.S. federal tax rate			21.0		%	21.0		%				21.0		%
State and local income taxes — net of federal benefit			1.4			1.1						1.1
Earnings in jurisdictions taxed at rates different from the statutory U.S.    federal tax rate			(0.6)			2.3			1			0.9			3
Equity income or loss			(2.7)			(2.0)						(1.4)
Excess tax benefits on stock-based compensation			(0.7)			(0.5)						(0.8)
Other — net			(0.3)			(0.8)			2			(0.5)			4,5
Effective tax rate			18.1		%	21.1		%				20.3		%

1 Includes net tax charges of $375 million (or a 3.0 percent impact on our effective tax rate) related to changes in tax laws in certain foreign jurisdictions, amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other discrete items.

2 Includes a tax benefit of $14 million (or a 1.5 percent impact on our effective tax rate) associated with the $834 million gain recorded upon the acquisition of the remaining ownership interest in BodyArmor. Refer to Note 2.

3 Includes net tax charges of $110 million (or a 1.1 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other agreed-upon audit issues.

4 Includes net tax expense of $431 million (or a 4.4 percent impact on our effective tax rate) primarily related to changes in judgment on specific tax positions due to the Opinion and amounts required to be recorded for changes to other uncertain tax positions, including interest and penalties. Also includes a tax benefit of $107 million (or a 1.1 percent impact on our effective tax rate) related to changes in our assessment of certain valuation allowances and a net tax benefit of $135 million (or a 1.4 percent impact on our effective tax rate) related to domestic return to provision adjustments and other tax items.

5 Includes a tax benefit of $40 million (or a 2.4 percent impact on our effective tax rate) associated with the $902 million gain recorded upon the acquisition of the remaining ownership interest in fairlife. Refer to Note 2.

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions):

Year Ended December 31,			2022			2021			2020
Balance of unrecognized tax benefits at beginning of year			$	906		$	915		$	392
Increase related to prior period tax positions			6			9			528			1
Decrease related to prior period tax positions			—			(50)			(1)
Increase related to current period tax positions			38			37			26
Decrease related to settlements with taxing authorities			(2)			(4)			(19)
Effect of foreign currency translation			(22)			(1)			(11)
Balance of unrecognized tax benefits at end of year			$	926		$	906		$	915

1 The increase was primarily related to a change in judgment on certain tax positions due to the Opinion. Refer to Note 11.

Deferred tax assets and liabilities

The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consisted of the following (in millions):

December 31,			2022			2021
Deferred tax assets:
Property, plant and equipment			$	40		$	36
Trademarks and other intangible assets			1,617			1,910
Equity method investments (including net foreign currency translation adjustments)			366			595
Derivative financial instruments			207			215
Other liabilities			1,503			1,255
Benefit plans			522			670
Net operating loss carryforwards			248			280
Other			530			377
Gross deferred tax assets			5,033			5,338
Valuation allowances			(424)			(401)
Total deferred tax assets			$	4,609		$	4,937
Deferred tax liabilities:
Property, plant and equipment			$	(741)		$	(721)
Trademarks and other intangible assets			(1,843)			(1,783)
Equity method investments (including net foreign currency translation adjustments)			(1,632)			(1,619)
Derivative financial instruments			(488)			(500)
Other liabilities			(372)			(315)
Benefit plans			(490)			(527)
Other			(211)			(164)
Total deferred tax liabilities			$	(5,777)		$	(5,629)
Net deferred tax assets (liabilities)			$	(1,168)		$	(692)

Summary of Valuation Allowance

An analysis of our deferred tax asset valuation allowances is as follows (in millions):

Year Ended December 31,			2022			2021			2020
Balance at beginning of year			$	401		$	406		$	303
Additions			47			25			240
Deductions			(24)			(30)			(137)
Balance at end of year			$	424		$	401		$	406

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