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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax Domestic and Foreign | The sources of income (loss) from continuing operations before income taxes are:
(dollars in millions) | 2022 |  | 2021 |  | 2020
United States | $ | 4,061 |  |  | $ | 3,498 |  |  | $ | (2,762) |
Foreign | 1,966 |  |  | 1,433 |  |  | 409 |
Income (loss) from continuing operations before income taxes | $ | 6,027 |  |  | $ | 4,931 |  |  | $ | (2,353) |
Schedule of Components of Income Tax Expense (Benefit) | The income tax expense (benefit) for the years ended December 31 are as follows:
(dollars in millions) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
United States: |  |  |  |  |
Federal | $ | 1,724 |  |  | $ | 387 |  |  | $ | 324 |
State | 126 |  |  | 60 |  |  | 45 |
Foreign | 513 |  |  | 427 |  |  | 305 |
| 2,363 |  |  | 874 |  |  | 674 |
Future: |  |  |  |  |
United States: |  |  |  |  |
Federal | (1,399) |  |  | (26) |  |  | (264) |
State | (166) |  |  | 41 |  |  | 258 |
Foreign | (98) |  |  | (103) |  |  | (93) |
| (1,663) |  |  | (88) |  |  | (99) |
Income tax expense | $ | 700 |  |  | $ | 786 |  |  | $ | 575 |
Schedule of Effective Income Tax Rate Reconciliation | Differences between effective income tax rates and the statutory U.S. federal income tax rate are as follows:
| 2022 |  | 2021 |  | 2020
(dollars in millions) | Amount | Rate |  | Amount | Rate |  | Amount | Rate
Statutory U.S. federal income tax rate | $ | 1,266 |  | 21.0 | % |  | $ | 1,036 |  | 21.0 | % |  | $ | (494) |  | 21.0 | %
Tax on international activities | (186) |  | (3.1) |  |  | (204) |  | (4.1) |  |  | 27 |  | (1.1) |
Tax charges related to Separation Transactions and Raytheon merger | — |  | — |  |  | (39) |  | (0.8) |  |  | 416 |  | (17.7) |
Disposals of businesses | — |  | — |  |  | 108 |  | 2.2 |  |  | 177 |  | (7.5) |
U.S. research and development credit | (164) |  | (2.7) |  |  | (172) |  | (3.5) |  |  | (142) |  | 6.1 |
Goodwill impairment | — |  | — |  |  | — |  | — |  |  | 668 |  | (28.4) |
State income tax, net | (12) |  | (0.2) |  |  | 33 |  | 0.7 |  |  | (56) |  | 2.4 |
Foreign Derived Intangible Income | (214) |  | (3.5) |  |  | (121) |  | (2.5) |  |  | (83) |  | 3.5 |
U.K. corporate tax rate enactment | — |  | — |  |  | 73 |  | 1.5 |  |  | 8 |  | (0.4) |
Other | 10 |  | 0.1 |  |  | 72 |  | 1.4 |  |  | 54 |  | (2.3) |
Effective income tax rate | $ | 700 |  | 11.6 | % |  | $ | 786 |  | 15.9 | % |  | $ | 575 |  | (24.4) | %
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and tax carryforwards which gave rise to future income tax benefits and payables at December 31, 2022 and 2021 are as follows:
(dollars in millions) | 2022 |  | 2021
Future income tax benefits: |  |  |
Insurance and employee benefits | $ | 1,126 |  |  | $ | 1,831 |
Inventory and contract balances | 639 |  |  | 756 |
Warranty provisions | 242 |  |  | 248 |
Capitalization of research and experimental expenditures | 1,712 |  |  | — |
Other basis differences | 828 |  |  | 878 |
Tax loss carryforwards | 305 |  |  | 251 |
Tax credit carryforwards | 970 |  |  | 1,088 |
Valuation allowances | (842) |  |  | (825) |
Total future income tax benefits | $ | 4,980 |  |  | $ | 4,227 |
Future income taxes payable: |  |  |
Goodwill and intangible assets | $ | 6,588 |  |  | $ | 7,168 |
Fixed assets | 1,751 |  |  | 1,746 |
Other basis differences | 220 |  |  | 323 |
Total future income tax payable | $ | 8,559 |  |  | $ | 9,237 |
Summary Of Tax Credit Carryforwards | At December 31, 2022, tax credit carryforwards, principally state and foreign, and tax loss carryforwards, principally state and foreign, were as follows:
(dollars in millions) | Tax Credit Carryforwards |  | Tax Loss Carryforwards
Expiration period: |  |  |
2023-2027 | $ | 54 |  |  | $ | 292 |
2028-2032 | 73 |  |  | 174 |
2033-2042 | 337 |  |  | 318 |
Indefinite | 506 |  |  | 1,357 |
Total | $ | 970 |  |  | $ | 2,141 |
Summary Of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of unrecognized tax benefits and interest expense related to unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020 is as follows:
(dollars in millions) | 2022 |  | 2021 |  | 2020
Balance at January 1 | $ | 1,458 |  |  | $ | 1,225 |  |  | $ | 1,347 |
Additions for tax positions related to the current year | 106 |  |  | 110 |  |  | 125 |
Additions for tax positions of prior years | 23 |  |  | 282 |  |  | 323 |
Reductions for tax positions of prior years | (56) |  |  | (49) |  |  | (83) |
Settlements | (16) |  |  | (110) |  |  | (48) |
Separation of Carrier and Otis | — |  |  | — |  |  | (439) |
Balance at December 31 | $ | 1,515 |  |  | $ | 1,458 |  |  | $ | 1,225 |
Gross interest expense related to unrecognized tax benefits | $ | 34 |  |  | $ | 39 |  |  | $ | 50 |
Total accrued interest balance at December 31 | 190 |  |  | 165 |  |  | 141 |

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