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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Earnings from Continuing Operations Before Income Taxes

Components of earnings before income taxes are as follows:

Years ended December 31			2022						2021						2020
United States			$	1,312					$	1,030					$	1,029
Other nations			203						522						145
			$	1,515					$	1,552					$	1,174

Income Tax Expense (Benefit)

Components of income tax expense are as follows:

Years ended December 31			2022						2021						2020
United States Federal			$	240					$	134					$	117
Other nations			159						98						98
States (U.S.)			83						36						31
Current income tax expense			482						268						246
United States Federal			(179)						(2)						(21)
Other nations			(118)						22						8
States (U.S.)			(37)						14						(12)
Deferred income tax expense (benefit)			(334)						34						(25)
Total income tax expense			$	148					$	302					$	221

Federal Statutory Tax Rate and Income Tax Expense

Differences between income tax expense computed at the U.S. federal statutory tax rate of 21% and income tax expense as reflected in the Consolidated Statements of Operations are as follows:

Years ended December 31			2022									2021									2020
Income tax expense at statutory rate			$	318		21.0		%				$	326		21.0		%				$	246		21.0		%
State income taxes, net of federal benefit			76			5.0		%				55			3.5		%				39			3.3		%
Non-U.S. tax expense on non-U.S. earnings			1			0.1		%				8			0.5		%				5			0.5		%
U.S. tax expense (benefit) on undistributed non-U.S. earnings			(43)			(2.8)		%				6			0.4		%				(2)			(0.2)		%
Intra-group IP transfer			(77)			(5.1)		%				—			—		%				—			—		%
Stock compensation			(68)			(4.5)		%				(32)			(2.1)		%				(48)			(4.1)		%
Valuation allowances			(51)			(3.4)		%				(34)			(2.2)		%				4			0.3		%
Research credits			(16)			(1.1)		%				(20)			(1.3)		%				(28)			(2.4)		%
Reserve for uncertain tax positions			(6)			(0.4)		%				(10)			(0.6)		%				—			—		%
Other tax expense (benefit)			14			0.9		%				3			0.2		%				5			0.4		%
			$	148		9.8		%				$	302		19.5		%				$	221		18.8		%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets (liabilities) are as follows: 

December 31			2022						2021
Inventory			$	38					$	29
Accrued liabilities and allowances			67						86
Employee benefits			290						321
Capitalized items			95						(86)
Tax basis differences on investments			6						(1)
Depreciation tax basis differences on fixed assets			1						23
Undistributed non-U.S. earnings			(38)						(36)
Tax attribute carryforwards			298						410
Business reorganization			7						8
Warranty and customer liabilities			22						27
Deferred revenue and costs			382						213
Valuation allowances			(221)						(275)
Operating lease assets			(116)						(95)
Operating lease liabilities			129						108
Other			4						1
			$	964					$	733

Summary of Tax Credit Carryforwards

Tax attribute carryforwards are as follows: 

December 31, 2022			Gross Tax Loss						Tax Effected						Expiration Period
United States:
U.S. tax losses			$	109					$	23					2029-2037
Foreign tax credits			—						181						2023
General business credits			—						1						2030-2033
State tax losses			—						16						2023-2041
State tax credits			—						6						2023-2041
Non-U.S. subsidiaries:
Japan tax losses			9						3						2023-2029
United Kingdom tax losses			152						38						Unlimited
Canada tax losses			17						4						2034-2042
Spain tax credits			—						11						2023-2029
Other subsidiaries tax losses			29						6						Various
Other subsidiaries tax credits			—						9						Various
									$	298

Unrecognized Tax Benefits, Including Those Attributable to Discontinued Operations

A roll-forward of unrecognized tax benefits is as follows: 

(in millions)			2022						2021
Balance at January 1			$	43					$	64
Additions based on tax positions related to current year			1						1
Additions for tax positions of prior years			2						2
Reductions for tax positions of prior years			(1)						—
Settlements and agreements			(4)						(18)
Lapse of statute of limitations			(6)						(6)
Balance at December 31			$	35					$	43

Summary of Open Tax Years by Major Jurisdiction

A summary of open tax years by major jurisdiction is presented below: 

Jurisdiction			Tax Years
United States			2018-2022
Australia			2018-2022
Canada			2018-2022
Germany			2018-2022
India			1997-2022
Israel			2019-2022
Poland			2016-2022
Malaysia			2015-2022
United Kingdom			2020-2022

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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination.

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