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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax Domestic and Foreign

The sources of income from continuing operations before income taxes are:

(dollars in millions)			2024						2023						2022
United States (1)			$	3,016					$	938					$	4,151
Foreign			3,178						2,898						1,966
Income from continuing operations before income taxes			$	6,194					$	3,836					$	6,117

(1)    2023 includes the impacts of the Powder Metal Matter.

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)			2024						2023						2022
Current:
United States:
Federal			$	443					$	213					$	1,724
State			179						70						216
Foreign			606						575						513
			1,228						858						2,453
Future:
United States:
Federal			(13)						(411)						(1,399)
State			71						(53)						(166)
Foreign			(105)						62						(98)
			(47)						(402)						(1,663)
Income tax expense			$	1,181					$	456					$	790

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:

			2024									2023									2022
(dollars in millions)			Amount			Rate						Amount			Rate						Amount			Rate
Statutory U.S. federal income tax rate			$	1,301		21.0		%				$	805		21.0		%				$	1,285		21.0		%
Tax on international activities			6			0.1						(27)			(0.7)						(186)			(3.1)
Disposals of businesses			126			2.0						—			—						—			—
U.S. research and development credit			(188)			(3.0)						(168)			(4.4)						(164)			(2.7)
U.S. federal audit settlements and statute lapse			(277)			(4.5)						(59)			(1.5)						—			—
State income tax, net			187			3.0						17			0.4						59			1.0
Foreign Derived Intangible Income (FDII)			(126)			(2.0)						(142)			(3.7)						(214)			(3.5)
Non-deductible legal charges (1)			148			2.4						5			0.1						—			—
Other			4			0.1						25			0.7						10			0.2
Effective income tax rate			$	1,181		19.1		%				$	456		11.9		%				$	790		12.9		%

(1)    2024 includes the impact of certain non-deductible legal charges related to the Resolution of Certain Legal Matters. See “Note 17: Commitments and Contingencies” for additional information.

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, 2024 and 2023 are as follows:

(dollars in millions)			2024						2023
Future income tax benefits:
Insurance and employee benefits			$	897					$	994
Inventory and contract balances			—						571
Warranty provisions			221						240
Capitalization of research and experimental expenditures			2,208						1,631
Other basis differences			1,060						779
Powder Metal Matter			455						644
Tax loss carryforwards			1,055						905
Tax credit carryforwards			800						891
Valuation allowances			(1,439)						(1,465)
Total future income tax benefits			$	5,257					$	5,190
Future income taxes payable:
Goodwill and Intangible assets			$	5,675					$	6,228
Fixed assets			1,614						1,739
Inventory and contract balances			193						—
Other basis differences			627						238
Total future income tax payable			$	8,109					$	8,205

Summary of Valuation Allowance

Changes to valuation allowances consisted of the following:

(dollars in millions)			2024						2023						2022
Balance at January 1			$	1,465					$	842					$	825
Additions charged to income tax expense			228						170						54
Reductions credited to income tax expense			(239)						(58)						(82)
Other adjustments (1)			(15)						511						45
Balance at December 31			$	1,439					$	1,465					$	842

(1)     2023 includes the addition of the indefinite-lived tax loss carryforwards now disclosed in connection with Organisation for Economic Co-operation and Development (OECD) Pillar Two.

Summary Of Tax Credit Carryforwards

At December 31, 2024, 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:
2025-2029			$	56					$	327
2030-2034			37						137
2035-2044			201						1,255
Indefinite			506						3,823
Total			$	800					$	5,542

Schedule of Unrecognized Tax Benefits Roll Forward

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, 2024, 2023, and 2022 is as follows: 

(dollars in millions)			2024						2023						2022
Balance at January 1			$	1,442					$	1,515					$	1,458
Additions for tax positions related to the current year			84						89						106
Additions for tax positions of prior years			164						5						23
Reductions for tax positions of prior years			(13)						(141)						(56)
Settlements			(414)						(26)						(16)
Balance at December 31			$	1,263					$	1,442					$	1,515
Gross interest expense related to unrecognized tax benefits			$	127					$	62					$	34
Total accrued interest balance at December 31			255						233						190

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