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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Before Income Taxes

The components of Income before income taxes are as follows for the years ended December 31:


	2023		2022		2021
United States	$	692	$	1,169	$	1,256
International	2,700		1,491		1,831
Total Income before income taxes	$	3,392	$	2,660	$	3,087

Schedule of Provision for Income Taxes

The Provision for income taxes consists of the following for the years ended December 31:


	2023		2022		2021
United States	$	72	$	199	$	228
International	865		494		521
Total Provision for income taxes	$	937	$	693	$	749

Schedule of Components of Deferred Income Tax Benefit

Temporary differences between accounting for financial statement purposes and accounting for tax purposes result in the current provision for taxes being higher (lower) than the total provision for income taxes as follows:


	2023		2022		2021
Goodwill and intangible assets	$	1	$	106	$	50
Property, plant and equipment	(13)		2		(19)
Pension and other retiree benefits	68		(1)		(4)
Stock-based compensation	2		(3)		11
Right-of-use assets/lease liabilities	1		(5)		(2)
Tax credits and tax loss carryforwards, net of valuation allowance	29		8		(2)

Deferred withholding tax	7		8		(16)
Research and Experimentation Capitalization	29		58		—
Other, net	11		(10)		19
Total deferred tax benefit (provision)	$	135	$	163	$	37

Schedule of Effective Tax Rate Reconciliation

The difference between the statutory U.S. federal income tax rate and the Company’s global effective tax rate as reflected in the Consolidated Statements of Income is as follows:


	2023		2022		2021
Percentage of Income before income taxes
Tax at United States statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	(0.1)		0.8		1.1
Earnings taxed at other than United States statutory rate	5.4		5.4		2.7




Non-deductible goodwill impairment charges	—		1.9		2.2
Foreign-derived intangible income benefit	(2.4)		(2.6)		(2.2)
Foreign tax matter	3.7		—		—
Other, net	—		(0.4)		(0.5)
Effective tax rate	27.6	%	26.1	%	24.3	%

Schedule of Components of Deferred Tax Assets (Liabilities)

The components of deferred tax assets (liabilities) are as follows at December 31:


	2023		2022
Deferred tax liabilities:
Goodwill and intangible assets	$	(412)	$	(405)
Property, plant and equipment	(420)		(375)
Right-of-use assets	(126)		(118)
Deferred withholding tax	(96)		(103)
Other	(34)		(27)
Total deferred tax liabilities	(1,088)		(1,028)
Deferred tax assets:
Pension and other retiree benefits	295		214
Tax credits and tax loss carryforwards	356		169
Lease liabilities	134		125
Accrued liabilities	221		218
Stock-based compensation	75		73
Research and Experimentation Capitalization	87		58
Other	60		52
Total deferred tax assets	1,228		909
Valuation Allowance	$	(287)	$	(129)
Net deferred tax assets	$	941	$	780
Net deferred income taxes	$	(147)	$	(248)

Schedule of Unrecognized Tax Benefits Activity

Unrecognized tax benefits activity for the years ended December 31, 2023, 2022 and 2021 is summarized below:


	2023		2022		2021
Unrecognized tax benefits:
Balance, January 1	$	298	$	245	$	227
Increases as a result of tax positions taken during the current year	73		32		26
Decreases of tax positions taken during prior years	(61)		(21)		(20)
Increases of tax positions taken during prior years	6		46		40
Decreases as a result of settlements with taxing authorities and the expiration of statutes of limitations	(2)		(2)		(23)
Effect of foreign currency rate movements	—		(2)		(5)
Balance, December 31	$	314	$	298	$	245