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INCOME TAXES (Tables)

12 Months Ended

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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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 components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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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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