v3.25.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Taxes on Income | For financial reporting purposes, income before income taxes includes the following components:
For the Years Ended December 31,
(In millions) |  | 2025 |  | 2024 |  | 2023
Income before income taxes: |  |  |  |  |  |
U.S. |  | $ | 1,986 |  |  | $ | 1,894 |  |  | $ | 1,823 |
Foreign |  | 3,553 |  |  | 3,586 |  |  | 3,203 |
|  | $ | 5,539 |  |  | $ | 5,480 |  |  | $ | 5,026 |
The expense (benefit) for income taxes is comprised of: |  |  |  |
Current – |  |  |  |  |  |
U.S. federal |  | $ | 203 |  |  | $ | 247 |  |  | $ | 273 |
U.S. state and local |  | 131 |  |  | 123 |  |  | 142 |
Foreign |  | 848 |  |  | 836 |  |  | 838 |
|  | 1,182 |  |  | 1,206 |  |  | 1,253 |
Deferred – |  |  |  |  |  |
U.S. federal |  | 73 |  |  | 53 |  |  | 29 |
U.S. state and local |  | 16 |  |  | 20 |  |  | 15 |
Foreign |  | 34 |  |  | 84 |  |  | (73) |
|  | 123 |  |  | 157 |  |  | (29) |
Total income taxes |  | $ | 1,305 |  |  | $ | 1,363 |  |  | $ | 1,224 |
Schedule of Deferred Income Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows:
December 31,
(In millions) |  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Accrued expenses not currently deductible |  | $ | 745 |  |  | $ | 713 |
Differences related to non-U.S. operations (a) |  | 286 |  |  | 282 |
Accrued U.S. retirement benefits |  | 131 |  |  | 149 |
Net operating losses (b) |  | 346 |  |  | 312 |
Income currently recognized for tax |  | 39 |  |  | 40 |
Other |  | 49 |  |  | 40 |
|  | $ | 1,596 |  |  | $ | 1,536 |
Deferred tax liabilities: |  |  |  |
Differences related to non-U.S. operations |  | $ | 590 |  |  | $ | 588 |
Depreciation and amortization |  | 699 |  |  | 616 |
Accrued retirement & post-retirement benefits – non-U.S. operations |  | 440 |  |  | 374 |
Capitalized expenses currently recognized for tax |  | 144 |  |  | 133 |
Other |  | 48 |  |  | 42 |
|  | $ | 1,921 |  |  | $ | 1,753 |
(a)Net of valuation allowances of $96 million in 2025 and $75 million in 2024. (b)Net of valuation allowances of $62 million in 2025 and $69 million in 2024.
December 31,
(In millions) |  | 2025 |  | 2024
Balance sheet classifications: |  |  |  |
Deferred tax assets |  | $ | 212 |  |  | $ | 237 |
Other liabilities |  | $ | 537 |  |  | $ | 454 |
Schedule of U.S. Federal Statutory Income Tax Rate | A reconciliation from the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:
For the Years Ended December 31, |  | 2025
|  | Amount |  | Percentage
U.S. federal statutory rate |  | $ | 1,163 |  |  | 21.0 | %
U.S. state and local income taxes – net of U.S. Federal income tax benefit (a) |  | 116 |  |  | 2.1 |
Change in valuation allowance |  | 19 |  |  | 0.4 |
Tax credits |  | (20) |  |  | (0.4) |
Nontaxable and nondeductible items, net |  | (8) |  |  | (0.1) |
Cross-border taxes |  |  |  |
Tax on flow through entities |  | (138) |  |  | (2.5) |
Other |  | 24 |  |  | 0.4 |
Other U.S. adjustments |  | (24) |  |  | (0.4) |
Foreign tax effects |  |  |  |
United Kingdom |  | 41 |  |  | 0.7 |
Other foreign |  | 129 |  |  | 2.3 |
Worldwide changes in prior year unrecognized tax benefits |  | 3 |  |  | 0.1 |
Effective tax rate |  | $ | 1,305 |  |  | 23.6 | %
(a)State taxes in New York State, California, New York City, Illinois, New Jersey, and Pennsylvania made up the majority (greater than 50 percent) of the tax effect in this category.
For the Years Ended December 31, |  |  | 2024 |  | 2023
U.S. federal statutory rate |  |  | 21.0 | % |  | 21.0 | %
U.S. state and local income taxes – net of U.S. Federal income tax benefit |  |  | 2.1 |  |  | 2.6 |
Differences related to non-U.S. operations |  |  | 2.5 |  |  | 2.2 |
Change in valuation allowance |  |  | — |  |  | (1.4) |
Equity compensation |  |  | (0.7) |  |  | (0.7) |
Uncertain tax positions |  |  | (0.3) |  |  | (0.1) |
Other |  |  | 0.3 |  |  | 0.7 |
Effective tax rate |  |  | 24.9 | % |  | 24.3 | %
Schedule of Unrecognized Tax Benefits | Following is a reconciliation of the Company’s total gross unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023:
(In millions) |  | 2025 |  | 2024 |  | 2023
Balance at January 1, |  | $ | 112 |  |  | $ | 124 |  |  | $ | 97 |
Additions, based on tax positions related to current year |  | 5 |  |  | 5 |  |  | 6 |
Additions for tax positions of prior years |  | 3 |  |  | 8 |  |  | 44 |
Reductions for tax positions of prior years |  | (1) |  |  | — |  |  | (8) |
Settlements |  | (1) |  |  | (10) |  |  | (8) |
Lapses in statutes of limitations |  | (9) |  |  | (15) |  |  | (7) |
Balance at December 31, |  | $ | 109 |  |  | $ | 112 |  |  | $ | 124 |
Schedule of Status of Audits for Significant Jurisdictions Outside of the United States | The status of audits for significant jurisdictions outside the U.S. are summarized in the table below:
Tax Audit (Years) |  |  |  |  |  |  |
Jurisdiction: |  | Initiated in 2025 |  | Ongoing |  | Concluded in 2025 |
United Kingdom |  | 2023 |  | 2016 - 2022 |  |  |
Canada |  | 2024 |  | 2021 |  |  |
Australia |  | 2021 - 2023 |  | 2019 - 2020 |  |  |
Germany |  |  |  | 2017 - 2020 |  |  |
France |  |  |  | 2022 - 2023 |  | 2021 |
Italy |  | 2020 |  | 2015 - 2017 |  | 2018 |
Singapore |  | 2023 |  | 2019 - 2022 |  | 2018 |
Japan |  | 2024 |  |  |  | 2021 - 2024 |
Mexico |  | 2020 |  |  |  |  |
India |  |  |  | 2007 - 2022 |  |  |

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- 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
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- 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
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- 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
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- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 + Details
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