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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Components of Income from Operations before Provision for Income Taxes

The components of the income before income taxes for the Company’s domestic and foreign operations for the years ended December 31 are provided below:

						For the year ended December 31,
In millions						2022						2021						2020
Domestic						$	372					$	253					$	78
Foreign						482						484						479
Income before income taxes						$	854					$	737					$	557

Summary of Consolidated Provision for Income Taxes

The consolidated provision for income taxes included in the Consolidated Statements of Income consisted of the following:

						For the year ended December 31,
In millions						2022						2021						2020
Current tax expense (benefit)
Federal						$	37					$	(81)					$	6
State						3						27						17
Foreign						137						138						93
						177						84						116
Deferred tax expense (benefit)
Federal						29						87						36
State						—						10						(2)
Foreign						7						(9)						(5)
						36						88						29
Total provision						$	213					$	172					$	145

Summary of Reconciliation of Income Tax Rate

A reconciliation of the United States federal statutory income tax rate to the effective income tax rate on operations for the years ended December 31 is provided below:

						For the year ended December 31,
In millions						2022						2021						2020
U.S. federal statutory rate						21.0		%				21.0		%				21.0		%
State taxes						2.0						0.3						2.6
Foreign						3.8						3.3						4.4
Research and development credit						(0.8)						(0.8)						(1.3)
U.S. net operating loss carryback						—						(3.4)						—
Changes in valuation allowance						(2.0)						3.0						(2.0)
U.S. tax reform provision						0.1						0.7						1.3
Other, net						0.9						(0.9)						—
Effective rate						25.0		%				23.2		%				26.0		%

Summary of Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

						December 31,
In millions						2022						2021
Deferred income tax assets:
Accrued expenses and reserves						$	39					$	44
Warranty reserve						49						53
Deferred compensation/employee benefits						61						62
Right-of-use assets						74						76
Pension and postretirement obligations						19						24
Inventory						49						46
Deferred revenue						52						30
Net operating loss carry forwards						102						102
Other						37						72
Gross deferred income tax assets						482						509
Less: Valuation allowance						(46)						(64)
Total deferred income tax assets						436						445
Deferred income tax liabilities:
Property, plant & equipment						78						85
Right-of-use liabilities						72						78
Intangible assets						542						503
Total deferred income tax liabilities						692						666
Net deferred income tax liability						$	256					$	221

Summary of Liability for Income Taxes Associated with Uncertain Tax Positions

A reconciliation of the beginning and ending amount of the gross liability for income taxes associated with unrecognized tax benefits follows:

In millions						2022						2021						2020
Balance at beginning of year						$	32					$	16					$	17
Unrecognized tax benefits in prior periods						1						19						4
Audit settlement during year						—						(1)						(5)
Expiration of audit statute of limitations						—						(2)						—
Balance at end of year						$	33					$	32					$	16

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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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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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