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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
U.S. income (loss) | $ | 6,388 |  |  | $ | 9,454 |  |  | $ | 9,513 |
Non-U.S. income (loss) | 3,535 |  |  | 1,306 |  |  | 1,902 |
Income (loss) before income taxes and equity income (loss) | $ | 9,924 |  |  | $ | 10,760 |  |  | $ | 11,415 |
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Current income tax expense (benefit) |  |  |  |  |
U.S. federal | $ | 240 |  |  | $ | 389 |  |  | $ | 20 |
U.S. state and local | 490 |  |  | 368 |  |  | 142 |
Non-U.S. | 874 |  |  | 707 |  |  | 395 |
Total current income tax expense (benefit) | 1,605 |  |  | 1,464 |  |  | 557 |
Deferred income tax expense (benefit) |  |  |  |  |
U.S. federal | (120) |  |  | 263 |  |  | 1,699 |
U.S. state and local | (43) |  |  | 109 |  |  | 229 |
Non-U.S. | (878) |  |  | 53 |  |  | 286 |
Total deferred income tax expense (benefit) | (1,041) |  |  | 425 |  |  | 2,214 |
Total income tax expense (benefit) | $ | 563 |  |  | $ | 1,888 |  |  | $ | 2,771 |
The Non-U.S. deferred income tax benefit in the year ended December 31, 2023 relates primarily to the release of a valuation allowance in Korea. Provisions are made for estimated U.S. and non-U.S. income taxes which may be incurred on the reversal of our basis differences in investments in foreign subsidiaries and corporate joint ventures not deemed to be indefinitely reinvested. Taxes have not been provided on basis differences in investments primarily as a result of earnings in foreign subsidiaries which are deemed indefinitely reinvested of $4.3 billion and $3.5 billion at December 31, 2023 and 2022. We have indefinitely reinvested basis differences related to investments in non-consolidated China JVs of $3.4 billion at December 31, 2023 and 2022 as a result of fresh-start reporting. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Income tax expense at U.S. federal statutory income tax rate | $ | 2,084 |  |  | $ | 2,260 |  |  | $ | 2,397 |
State and local tax expense (benefit) | 348 |  |  | 388 |  |  | 301 |
Non-U.S. income taxed at other than the U.S. federal statutory tax rate | 203 |  |  | 32 |  |  | 36 |
U.S. tax impact on Non-U.S. income and activities | (62) |  |  | 5 |  |  | 129 |
Change in valuation allowances | (1,061) |  |  | (392) |  |  | 665 |
Change in tax laws | 25 |  |  | 78 |  |  | (93) |
General business credits and manufacturing incentives | (966) |  |  | (829) |  |  | (492) |
Settlements of prior year tax matters | 23 |  |  | — |  |  | 11 |
Realization of basis differences in affiliates | — |  |  | 209 |  |  | (295) |
Foreign currency remeasurement | (62) |  |  | 36 |  |  | 28 |
Other adjustments | 31 |  |  | 102 |  |  | 84 |
Total income tax expense (benefit) | $ | 563 |  |  | $ | 1,888 |  |  | $ | 2,771 |
Deferred Income Tax Assets and Liabilities Deferred income tax assets and liabilities at December 31, 2023 and 2022 reflect the effect of temporary differences between amounts of assets, liabilities and equity for financial reporting purposes and the bases of such assets, liabilities and equity as measured based on tax laws, as well as tax loss and tax credit carryforwards. The following table summarizes the components of temporary differences and carryforwards that give rise to deferred tax assets and liabilities:
| December 31, 2023 |  | December 31, 2022
Deferred tax assets |  |  |
Postretirement benefits other than pensions | $ | 1,119 |  |  | $ | 1,120 |
Pension and other employee benefit plans | 1,522 |  |  | 997 |
Warranties, dealer and customer allowances, claims and discounts | 3,684 |  |  | 4,341 |
U.S. capitalized research expenditures | 9,879 |  |  | 8,851 |
U.S. operating loss and tax credit carryforwards(a) | 6,033 |  |  | 5,861 |
Non-U.S. operating loss and tax credit carryforwards(b) | 6,204 |  |  | 6,296 |
Miscellaneous | 5,121 |  |  | 2,773 |
Total deferred tax assets before valuation allowances | 33,562 |  |  | 30,240 |
Less: valuation allowances | (6,979) |  |  | (7,744) |
Total deferred tax assets | 26,583 |  |  | 22,495 |
Deferred tax liabilities |  |  |
Property, plant and equipment | 4,233 |  |  | 1,957 |
Intangible assets | 699 |  |  | 707 |
Total deferred tax liabilities | 4,932 |  |  | 2,664 |
Net deferred tax assets | $ | 21,651 |  |  | $ | 19,832 |
__________ (a) At December 31, 2023, U.S. operating loss deferred tax assets were $404 million, where $129 million can be carried forward indefinitely and $275 million will expire by 2041, if not utilized. At December 31, 2023, U.S. tax credit carryforwards were $5.6 billion, where $405 million can be carried forward indefinitely and $5.2 billion will expire by 2043, if not utilized. (b) At December 31, 2023, Non-U.S. operating loss deferred tax assets were $6.1 billion, where $5.2 billion can be carried forward indefinitely and $876 million will expire by 2039 if not utilized. At December 31, 2023, Non-U.S. tax credit carryforwards were $135 million, where $109 million can be carried forward indefinitely and $26 million will expire by 2042, if not utilized. Valuation Allowances As a result of improving profitability in the Korean operating business evidenced by cumulative earnings in recent years and the completion of our near-and long-term business plans in the three months ended December 31, 2023 that forecast continuing profitability, we determined that it was more likely than not that future earnings will be sufficient to realize the deferred tax assets in Korea. Accordingly, we released Korea's $870 million valuation allowance resulting in an income tax benefit. During the years ended December 31, 2023 and 2022, valuation allowances against deferred tax assets of $7.0 billion and $7.7 billion were comprised of cumulative losses, credits and other timing differences, primarily in Germany, Spain, the U.S. and Brazil. Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
Balance at beginning of period | $ | 520 |  |  | $ | 634 |  |  | $ | 1,086 |
Additions to current year tax positions | 45 |  |  | 12 |  |  | 22 |
Additions to prior years' tax positions | 72 |  |  | 14 |  |  | 46 |
Reductions to prior years' tax positions | (15) |  |  | (98) |  |  | (473) |
Reductions in tax positions due to lapse of statutory limitations | (19) |  |  | (20) |  |  | (17) |
Settlements | (18) |  |  | (10) |  |  | (26) |
Other | — |  |  | (12) |  |  | (4) |
Balance at end of period | $ | 585 |  |  | $ | 520 |  |  | $ | 634 |
At December 31, 2023 and 2022, there were $386 million and $356 million of unrecognized tax benefits that if recognized would favorably affect our effective tax rate in the future. In the years ended December 31, 2023, 2022 and 2021, income tax related interest and penalties were insignificant. At December 31, 2023 and 2022, liabilities for income tax related interest and penalties were insignificant. At December 31, 2023, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits in the next twelve months. Other Matters Income tax returns are filed in multiple jurisdictions and are subject to examination by taxing authorities throughout the world. We have open tax years from 2011 to 2023 with various significant tax jurisdictions. Tax authorities may have the ability to review and adjust net operating loss or tax credit carryforwards that were generated prior to these periods if utilized in an open tax year. These open years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the sustainability of income tax credits for a given audit cycle.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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