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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Before Taxes |
| Years Ended December 31,
2023 |  | 2022 |  | 2021
U.S. | $ | 2,368 |  |  | $ | 3,305 |  |  | $ | 3,955 |
Non-U.S. | 4,791 |  |  | 3,074 |  |  | 3,280 |
Total Income before taxes | $ | 7,159 |  |  | $ | 6,379 |  |  | $ | 7,235 |
Tax Expense (Benefit) | Tax expense (benefit) consists of:
| Years Ended December 31,
2023 |  | 2022 |  | 2021
Current |  |  |  |  |
U.S. Federal | $ | 176 |  |  | $ | 653 |  |  | $ | 415 |
U.S. State | 60 |  |  | 124 |  |  | 146 |
Non-U.S. | 1,098 |  |  | 815 |  |  | 886 |
Total current tax expense (benefit) | 1,334 |  |  | 1,592 |  |  | 1,447 |
Deferred |  |  |  |  |
U.S. Federal | 27 |  |  | (175) |  |  | 173 |
U.S. State | 11 |  |  | (36) |  |  | 37 |
Non-U.S. | 115 |  |  | 32 |  |  | (32) |
Total deferred tax expense (benefit) | 153 |  |  | (180) |  |  | 178 |
Total Tax expense | $ | 1,487 |  |  | $ | 1,412 |  |  | $ | 1,625 |
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:
| Years Ended December 31,
2023 |  | 2022 |  | 2021
U.S. federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Taxes on non-U.S. earnings 1,2,3 | (2.0) |  |  | (0.4) |  |  | (1.4) |
U.S. state income taxes 1 | 0.5 |  |  | 1.4 |  |  | 1.5 |
Reserves for tax contingencies | 3.4 |  |  | 1.1 |  |  | 2.2 |
Employee share-based payments | (0.3) |  |  | (0.9) |  |  | (0.7) |
Restructuring | — |  |  | 0.7 |  |  | (1.4) |
U.S. federal tax credits | (1.6) |  |  | (0.9) |  |  | (0.6) |
U.S. valuation allowance | (0.1) |  |  | (0.2) |  |  | 2.0 |
All other items—net | (0.1) |  |  | 0.3 |  |  | (0.1) |
Effective income tax rate | 20.8 | % |  | 22.1 | % |  | 22.5 | %
1 |  | Net of changes in valuation allowance.
2 |  | Includes U.S. taxes on non-U.S. earnings, net of foreign tax credits.
3 |  | 2023 includes (3.6)% deferred tax benefit resulting from a non-U.S. legislative change, offset by 3.6% deferred tax expense resulting from a full valuation allowance.
Deferred Tax Assets (Liabilities) | The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows:
Deferred tax assets | December 31,
2023 |  | 2022
Postretirement benefits other than pensions | $ | 55 |  |  | $ | 59 |
Asbestos and environmental | 405 |  |  | 545 |
Capitalized research and development | 582 |  |  | — |
Employee compensation and benefits | 148 |  |  | 142 |
Lease liabilities | 258 |  |  | 233 |
Other accruals and reserves | 196 |  |  | 363 |
Net operating losses | 687 |  |  | 695 |
Capital loss limitation and carryover | 385 |  |  | 126 |
Tax credit carryforwards and other attributes | 420 |  |  | 163 |
Gross deferred tax assets | 3,136 |  |  | 2,326 |
Valuation allowance | (1,292) |  |  | (812) |
Total deferred tax assets | 1,844 |  |  | 1,514 |
Deferred tax liabilities |  |  |
Pension | (1,132) |  |  | (1,088) |
Property, plant and equipment | (441) |  |  | (233) |
Right-of-use asset | (240) |  |  | (212) |
Intangibles | (817) |  |  | (818) |
Unremitted earnings of foreign subsidiaries | (542) |  |  | (517) |
Other asset basis differences | (369) |  |  | (317) |
Other | (5) |  |  | (1) |
Total deferred tax liabilities | (3,546) |  |  | (3,186) |
Net deferred tax liability | $ | (1,702) |  |  | $ | (1,672) |
Summary of Operating Loss Carryforwards | As of December 31, 2023, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
Jurisdiction |  | Net Operating and Capital Loss Carryforwards |  | Tax Credit Carryforwards and Other Attributes
U.S. Federal |  | $ | 532 |  |  | $ | 96 |
U.S. State |  | 675 |  |  | 25 |
Non-U.S. |  | 3,720 |  |  | 304 |
Total |  | $ | 4,927 |  |  | $ | 425 |
Change in Unrecognized Tax Benefits | Many jurisdictions impose limitations on the timing and utilization of net operating loss and tax credit carryforwards. Approximately $3,140 million of the non-U.S. net operating loss has no expiration period. The U.S. federal capital loss carryforward of $502 million expires in 2026. The remaining net operating loss, capital loss and credit carryforwards, and other tax attributes have expiration periods through 2043.
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Change in unrecognized tax benefits |  |  |  |  |
Balance at beginning of year | $ | 1,086 |  |  | $ | 1,061 |  |  | $ | 991 |
Gross increases related to current period tax positions | 89 |  |  | 64 |  |  | 93 |
Gross increases related to prior periods tax positions | 181 |  |  | 31 |  |  | 39 |
Gross decreases related to prior periods tax positions | — |  |  | (19) |  |  | (27) |
Decrease related to resolutions of audits with tax authorities | (132) |  |  | (3) |  |  | (1) |
Expiration of the statute of limitations for the assessment of taxes | (3) |  |  | (8) |  |  | (12) |
Foreign currency translation | 4 |  |  | (40) |  |  | (22) |
Balance at end of year | $ | 1,225 |  |  | $ | 1,086 |  |  | $ | 1,061 |
Summary of Income Tax Examinations | The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2023:
Jurisdiction | Open Tax Years
Examination in progress | Examination not yet initiated
U.S. Federal | 2017-2021 | 2022-2023
U.S. State | 2013-2021 | 2022-2023
China | 2013-2022 | 2023
Germany | 2013-2020 | 2021-2023
India | 2013-2020 | 2021-2023
Puerto Rico | N/A | 2020-2023
Switzerland | 2019-2020 | 2021-2023
United Kingdom | 2013-2021 | 2022-2023

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