XML 76 R57.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Components of income tax expense | The components of income tax expense for the years ended December 31 included in the Consolidated Statements of Income were as follows: TABLE 20.1: COMPONENTS OF INCOME TAX EXPENSE
(Millions) |  | 2024 |  | 2023 |  | 2022
Current income tax expense: |  |  |  |  |  |
U.S. federal |  | $ | 2,368 |  |  | $ | 2,455 |  |  | $ | 2,445 |
U.S. state and local |  | 494 |  |  | 351 |  |  | 339 |
Non-U.S. |  | 894 |  |  | 662 |  |  | 476 |
Total current income tax expense |  | 3,756 |  |  | 3,468 |  |  | 3,260 |
Deferred income tax (benefit) expense: |  |  |  |  |  |
U.S. federal |  | (797) |  |  | (952) |  |  | (763) |
U.S. state and local |  | (146) |  |  | (139) |  |  | (117) |
Non-U.S. |  | (47) |  |  | (238) |  |  | (309) |
Total deferred income tax (benefit) expense |  | (990) |  |  | (1,329) |  |  | (1,189) |
Total income tax expense |  | $ | 2,766 |  |  | $ | 2,139 |  |  | $ | 2,071 |
Effective income tax rate reconciliation | A reconciliation of the U.S. federal statutory rate of 21 percent as of December 31, 2024, 2023 and 2022, to our actual income tax rate was as follows: TABLE 20.2: RECONCILIATION OF ACTUAL INCOME TAX RATE
|  | 2024 |  | 2023 |  | 2022
U.S. statutory federal income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
(Decrease) increase in taxes resulting from: |  |  |  |  |  |
Tax credits and tax-exempt income |  | (0.7) |  |  | (0.7) |  |  | (0.9) |
State and local income taxes, net of federal benefit |  | 2.5 |  |  | 2.4 |  |  | 3.1 |
Non-U.S. subsidiaries’ earnings (a) |  | (1.0) |  |  | (0.8) |  |  | (0.1) |
Tax settlements and lapse of statute of limitations |  | (0.5) |  |  | (2.0) |  |  | (2.1) |
Valuation allowances |  | — |  |  | 0.1 |  |  | (0.1) |
Other |  | 0.2 |  |  | 0.3 |  |  | 0.7 |
Actual tax rates |  | 21.5 | % |  | 20.3 | % |  | 21.6 | %
(a)In certain jurisdictions outside the United States, we benefit from agreements that temporarily lower our income tax expense. The impact of these agreements was not material to our Consolidated Statements of Income.
Components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities as of December 31 are reflected in the following table: TABLE 20.3: COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES
(Millions) |  | 2024 |  | 2023
Deferred tax assets: |  |  |  |
Reserves not yet deducted for tax purposes |  | $ | 4,950 |  |  | $ | 4,552 |
Employee compensation and benefits |  | 343 |  |  | 335 |
Net operating loss and tax credit carryforwards |  | 464 |  |  | 466 |
Capitalized developed software |  | 1,084 |  |  | 743 |
Other |  | 853 |  |  | 723 |
Gross deferred tax assets |  | 7,694 |  |  | 6,819 |
Valuation allowance |  | (655) |  |  | (614) |
Deferred tax assets after valuation allowance |  | 7,039 |  |  | 6,205 |
Deferred tax liabilities: |  |  |  |
Intangibles and fixed assets |  | 673 |  |  | 683 |
Deferred revenue |  | — |  |  | 62 |
Deferred interest |  | 113 |  |  | 114 |
Other |  | 579 |  |  | 566 |
Gross deferred tax liabilities |  | 1,365 |  |  | 1,425 |
Net deferred tax assets |  | $ | 5,674 |  |  | $ | 4,780 |
Changes in unrecognized tax benefits | The following table presents changes in unrecognized tax benefits: TABLE 20.4: ROLLFORWARD OF UNRECOGNIZED TAX BENEFITS
(Millions) |  | 2024 |  | 2023 |  | 2022
Balance, January 1 |  | $ | 875 |  |  | $ | 962 |  |  | $ | 1,024 |
Increases: |  |  |  |  |  |
Current year tax positions |  | 161 |  |  | 132 |  |  | 119 |
Tax positions related to prior years |  | 47 |  |  | 40 |  |  | 30 |
Decreases: |  |  |  |  |  |
Tax positions related to prior years |  | (4) |  |  | (50) |  |  | (30) |
Settlements with tax authorities |  | (39) |  |  | (160) |  |  | (74) |
Lapse of statute of limitations |  | (21) |  |  | (49) |  |  | (104) |
Effects of foreign currency translations |  | (13) |  |  | — |  |  | (3) |
Balance, December 31 |  | $ | 1,006 |  |  | $ | 875 |  |  | $ | 962 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration