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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

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						2023						2022						2021
Domestic						$	506					$	372					$	253
Foreign						586						482						484
Income before income taxes						$	1,092					$	854					$	737

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						2023						2022						2021
Current tax expense (benefit)
Federal						$	148					$	37					$	(81)
State						29						3						27
Foreign						148						137						138
						325						177						84
Deferred tax (benefit) expense
Federal						(50)						29						87
State						1						—						10
Foreign						(9)						7						(9)
						(58)						36						88
Total provision						$	267					$	213					$	172

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						2023						2022						2021
U.S. federal statutory rate						21.0		%				21.0		%				21.0		%
State taxes						1.5						2.0						0.3
Foreign						2.0						3.8						3.3
Research and development credit						(0.6)						(0.8)						(0.8)
Non-taxable gain on acquisition						(0.8)						—						—
U.S. net operating loss carryback						—						—						(3.4)
Changes in valuation allowances						1.0						(2.0)						3.0
U.S. tax reform provision						0.6						0.1						0.7
Other, net						(0.2)						0.9						(0.9)
Effective rate						24.5		%				25.0		%				23.2		%

Summary of Components of Deferred Tax Assets and Liabilities

Components of deferred tax assets and liabilities were as follows:

						December 31,
In millions						2023						2022
Deferred income tax assets:
Accrued expenses and reserves						$	50					$	39
Warranty reserve						49						49
Deferred compensation/employee benefits						77						61
Right-of-use assets						78						74
Pension and postretirement obligations						16						19
Inventory						49						49
Deferred revenue						84						52
Net operating loss carry forwards						124						102
Other						51						37
Gross deferred income tax assets						578						482
Less: Valuation allowance						(58)						(46)
Total deferred income tax assets						520						436
Deferred income tax liabilities:
Property, plant & equipment						64						78
Right-of-use liabilities						75						72
Intangible assets						610						542
Total deferred income tax liabilities						749						692
Net deferred income tax liability						$	229					$	256

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						2023						2022						2021
Balance at beginning of year						$	33					$	32					$	16
Unrecognized tax benefits in prior periods						13						1						19
Audit settlement during year						(5)						—						(1)
Expiration of audit statute of limitations						(1)						—						(2)
Balance at end of year						$	40					$	33					$	32

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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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