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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Taxes by Geographical Area | Earnings (losses) before income taxes by geographical area consisted of the following (in millions of dollars):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
U.S. | $ | 1,903 |  |  | $ | 1,267 |  |  | $ | 1,015 |
Foreign | 243 |  |  | 218 |  |  | (68) |
Total | $ | 2,146 |  |  | $ | 1,485 |  |  | $ | 947 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following (in millions of dollars):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Current income tax expense: |  |  |  |  |
U.S. Federal | $ | 374 |  |  | $ | 221 |  |  | $ | 119 |
U.S. State | 77 |  |  | 46 |  |  | 28 |
Foreign | 78 |  |  | 81 |  |  | 65 |
Total current | 529 |  |  | 348 |  |  | 212 |
Deferred income tax expense (benefit) | 4 |  |  | 23 |  |  | (20) |
Total income tax expense | $ | 533 |  |  | $ | 371 |  |  | $ | 192 |
Schedule of Deferred Tax Assets and Liabilities | The income tax effects of temporary differences that gave rise to the net deferred tax asset (liability) as of December 31, 2022 and 2021 were as follows (in millions of dollars):
| As of December 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Accrued expenses | 150 |  |  | 152 |
Foreign loss carryforwards | 62 |  |  | 59 |
Accrued employment-related benefits | 51 |  |  | 50 |
Tax credit carryforward | 26 |  |  | 27 |
Other | 23 |  |  | 17 |
Deferred tax assets | 312 |  |  | 305 |
Less valuation allowance | (71) |  |  | (70) |
Deferred tax assets – net of valuation allowance | $ | 241 |  |  | $ | 235 |
Deferred tax liabilities: |  |  |
Property, buildings, equipment and other capital assets | (212) |  |  | (217) |
Intangibles | (64) |  |  | (67) |
Inventory | (18) |  |  | (9) |
Other | (11) |  |  | (8) |
Deferred tax liabilities | (305) |  |  | (301) |
Net deferred tax liability | $ | (64) |  |  | $ | (66) |
The net deferred tax asset (liability) is classified as follows: |  |  |
Noncurrent assets | $ | 12 |  |  | $ | 14 |
Noncurrent liabilities (foreign) | (76) |  |  | (80) |
Net deferred tax liability | $ | (64) |  |  | $ | (66) |
Summary of Valuation Allowance Changes | The Company's valuation allowance changed as follows (in millions of dollars):
| For the Years Ended December 31,
| 2022 |  | 2021
Balance at beginning of period | $ | (70) |  |  | $ | (53) |
Increases primarily related to foreign NOLs | (10) |  |  | (8) |
Releases primarily related to foreign NOLs | 1 |  |  | 2 |
Foreign subsidiaries tax impacts due to divestiture | — |  |  | 2 |
Tax rate changes | — |  |  | (7) |
Foreign exchange rate changes | 4 |  |  | 1 |
Increase related to U.S. foreign tax credits | 1 |  |  | (3) |
Other changes – net | 3 |  |  | (4) |
Balance at end of period | $ | (71) |  |  | $ | (70) |
Reconciliation of Income Tax Statutory Rate | A reconciliation of income tax expense with federal income taxes at the statutory rate follows (in millions of dollars):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Federal income tax | $ | 451 |  |  | $ | 312 |  |  | $ | 199 |
State income taxes – net of federal income tax benefit | 64 |  |  | 41 |  |  | 33 |
Foreign rate difference | 26 |  |  | 26 |  |  | 23 |
Foreign subsidiaries tax impacts due to divestiture | — |  |  | — |  |  | (61) |
Change in valuation allowance | 7 |  |  | 7 |  |  | 16 |
Other – net | (15) |  |  | (15) |  |  | (18) |
Income tax expense | $ | 533 |  |  | $ | 371 |  |  | $ | 192 |
Effective tax rate | 24.8 | % |  | 25.0 | % |  | 20.3 | %
Reconciliation of Income Tax Contingencies | The changes in the liability for tax uncertainties, excluding interest, are as follows (in millions of dollars):
| For the Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Balance at beginning of year | $ | 38 |  |  | $ | 39 |  |  | $ | 28 |
Additions for tax positions related to the current year | 4 |  |  | 3 |  |  | 23 |
Additions for tax positions of prior years | 2 |  |  | — |  |  | — |
Reductions for tax positions of prior years | — |  |  | (1) |  |  | (2) |
Reductions due to statute lapse | (2) |  |  | (3) |  |  | (10) |
Settlements, audit payments, refunds – net | (1) |  |  | — |  |  | — |
Balance at end of year | $ | 41 |  |  | $ | 38 |  |  | $ | 39 |

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