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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Tax Expense Benefit | The income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 consists of the following (in millions):
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
U.S. Federal | $ | 1,093 |  |  | $ | 1,012 |  |  | $ | 2,006 |
U.S. State and Local | 172 |  |  | 195 |  |  | 273 |
Non-U.S. | 410 |  |  | 459 |  |  | 467 |
Total Current | 1,675 |  |  | 1,666 |  |  | 2,746 |
Deferred: |  |  |  |  |
U.S. Federal | 38 |  |  | 150 |  |  | 296 |
U.S. State and Local | (30) |  |  | 20 |  |  | 136 |
Non-U.S. | (23) |  |  | 29 |  |  | 99 |
Total Deferred | (15) |  |  | 199 |  |  | 531 |
Total Income Tax Expense | $ | 1,660 |  |  | $ | 1,865 |  |  | $ | 3,277 |
Income Before Income Taxes | Income before income taxes includes the following components (in millions):
| 2024 |  | 2023 |  | 2022
United States | $ | 5,839 |  |  | $ | 6,246 |  |  | $ | 12,276 |
Non-U.S. | 1,603 |  |  | 2,327 |  |  | 2,549 |
Total Income Before Income Taxes | $ | 7,442 |  |  | $ | 8,573 |  |  | $ | 14,825 |
Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate | A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended 2024, 2023 and 2022 consists of the following:
| 2024 |  | 2023 |  | 2022
Statutory U.S. federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
U.S. state and local income taxes (net of federal benefit) | 1.8 |  |  | 1.9 |  |  | 2.0 |
Non-U.S. tax rate differential | — |  |  | (0.6) |  |  | 0.1 |
FDII and GILTI, net(1) | (1.2) |  |  | (0.9) |  |  | (0.7) |
U.S. federal tax credits | (0.8) |  |  | (0.7) |  |  | (0.5) |
Goodwill and other asset impairments | — |  |  | 0.1 |  |  | — |
Net uncertain tax positions | 0.2 |  |  | (0.5) |  |  | 0.4 |
Other | 1.3 |  |  | 1.5 |  |  | (0.2) |
Effective income tax rate | 22.3 | % |  | 21.8 | % |  | 22.1 | %
(1) Foreign-Derived Intangible Income ("FDII") and Global Intangible Low-Taxed Income ("GILTI")
Deferred Tax Liabilities and Assets | Deferred income tax assets and liabilities are comprised of the following as of December 31, 2024 and 2023 (in millions):
| 2024 |  | 2023
Fixed assets and capitalized software | $ | (5,914) |  |  | $ | (5,974) |
Operating lease right-of-use assets | (943) |  |  | (1,017) |
Other | (612) |  |  | (605) |
Deferred tax liabilities | (7,469) |  |  | (7,596) |
Pension and postretirement benefits | 1,474 |  |  | 1,304 |
Loss and credit carryforwards | 308 |  |  | 232 |
Insurance reserves | 646 |  |  | 626 |
Accrued employee compensation | 352 |  |  | 354 |
Operating lease liabilities | 1,021 |  |  | 1,073 |
Other | 367 |  |  | 480 |
Deferred tax assets | 4,168 |  |  | 4,069 |
Deferred tax assets valuation allowance | (182) |  |  | (119) |
Deferred tax asset (net of valuation allowance) | 3,986 |  |  | 3,950 |
Net deferred tax asset (liability) | $ | (3,483) |  |  | $ | (3,646) |
Amounts recognized in our consolidated balance sheets: |  |  |
Deferred tax assets | $ | 112 |  |  | $ | 126 |
Deferred tax liabilities | (3,595) |  |  | (3,772) |
Net deferred tax asset (liability) | $ | (3,483) |  |  | $ | (3,646) |
U.S. State and Local Operating Loss and Credit Carryforwards | Further, we have U.S. state and local operating loss and credit carryforwards as follows (in millions):
| 2024 |  | 2023
U.S. state and local operating loss carryforwards | $ | 1,043 |  |  | $ | 762 |
U.S. state and local credit carryforwards | $ | 47 |  |  | $ | 48 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to our uncertain tax positions (in millions):
| Tax |  | Interest |  | Penalties
Balance as of January 1, 2022 | $ | 480 |  |  | $ | 78 |  |  | $ | 2 |
Additions for tax positions of the current year | 56 |  |  | — |  |  | — |
Additions for tax positions of prior years | 25 |  |  | 30 |  |  | 2 |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (9) |  |  | (1) |  |  | — |
Settlements during the period | (10) |  |  | (1) |  |  | — |
Lapses of applicable statute of limitations | (9) |  |  | (2) |  |  | — |
Balance as of December 31, 2022 | 533 |  |  | 104 |  |  | 4 |
Additions for tax positions of the current year | 26 |  |  | — |  |  | — |
Additions for tax positions of prior years | 147 |  |  | 37 |  |  | 1 |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (164) |  |  | (24) |  |  | (1) |
Settlements during the period | (47) |  |  | (9) |  |  | — |
Lapses of applicable statute of limitations | (3) |  |  | — |  |  | — |
Balance as of December 31, 2023 | 492 |  |  | 108 |  |  | 4 |
Additions for tax positions of the current year | 33 |  |  | — |  |  | — |
Additions for tax positions of prior years | 52 |  |  | 33 |  |  | — |
Reductions for tax positions of prior years for: |  |  |  |  |
Changes based on facts and circumstances | (81) |  |  | (11) |  |  | (1) |
Settlements during the period | (33) |  |  | (5) |  |  | — |
Lapses of applicable statute of limitations | (16) |  |  | (3) |  |  | — |
Balance as of December 31, 2024 | $ | 447 |  |  | $ | 122 |  |  | $ | 3 |

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