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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Earnings Before Income Taxes by Geographic Region | The following table sets forth the geographic split of earnings before income taxes (in millions).
| Year Ended December 31
| 2024 |  | 2023 |  | 2022
United States | $ | 656 |  |  | $ | 1,844 |  |  | $ | 2,725 |
Foreign | 1,599 |  |  | 2,450 |  |  | 2,508 |
Total Earnings Before Income Taxes | $ | 2,255 |  |  | $ | 4,294 |  |  | $ | 5,233 |
Schedule of Significant Components of Income Taxes | Significant components of income tax expense are as follows (in millions):
| Year Ended December 31
| 2024 |  | 2023 |  | 2022
Current expense |  |  |  |  |
Federal | $ | 108 |  |  | $ | 291 |  |  | $ | 379 |
State | 8 |  |  | 47 |  |  | 97 |
Foreign | 490 |  |  | 513 |  |  | 481 |
| $ | 606 |  |  | $ | 851 |  |  | $ | 957 |
Deferred expense (benefit) |  |  |  |  |
Federal | (99) |  |  | (52) |  |  | 23 |
State | 6 |  |  | (10) |  |  | 7 |
Foreign | (37) |  |  | 39 |  |  | (119) |
| $ | (130) |  |  | $ | (23) |  |  | $ | (89) |
Income tax expense | $ | 476 |  |  | $ | 828 |  |  | $ | 868 |
Schedule of Significant Components of Deferred Tax Liabilities and Assets | Significant components of deferred tax liabilities and assets are as follows (in millions):
| December 31, 2024 |  | December 31, 2023
Deferred tax liabilities |  |  |
Property, plant, and equipment | $ | 808 |  |  | $ | 827 |
Intangibles | 343 |  |  | 358 |
Right of use assets | 317 |  |  | 263 |
Equity in earnings of affiliates | 236 |  |  | 214 |
Debt exchange | 49 |  |  | 50 |
Reserves and other accruals | 133 |  |  | 49 |
Other | 30 |  |  | 137 |
| $ | 1,916 |  |  | $ | 1,898 |
Deferred tax assets |  |  |
Pension and postretirement benefits | $ | 95 |  |  | $ | 111 |
Inventories | 12 |  |  | 20 |
Lease liabilities | 323 |  |  | 268 |
Stock compensation | 36 |  |  | 42 |
Foreign tax loss carryforwards | 386 |  |  | 494 |
Capital loss carryforwards | 41 |  |  | 42 |
State tax attributes | 23 |  |  | 25 |
US carryforwards | 196 |  |  | 27 |
Other | 111 |  |  | 71 |
Gross deferred tax assets | 1,223 |  |  | 1,100 |
Valuation allowances | (223) |  |  | (216) |
Net deferred tax assets | $ | 1,000 |  |  | $ | 884 |
Net deferred tax liabilities | $ | 916 |  |  | $ | 1,014 |
The net deferred tax liabilities are classified as follows: |  |  |
Noncurrent assets | $ | 352 |  |  | $ | 295 |
Noncurrent liabilities | (1,268) |  |  | (1,309) |
| $ | (916) |  |  | $ | (1,014) |
Schedule of Valuation Allowance | The activity related to the income tax valuation allowance for the years ended December 31, 2024, 2023, and 2022 was as follows (in millions):
| Year Ended December 31
| 2024 |  | 2023 |  | 2022
Opening balance, January 1 | $ | 216 |  |  | $ | 209 |  |  | $ | 281 |
Additions | 40 |  |  | 58 |  |  | 18 |
Deductions | (33) |  |  | (51) |  |  | (90) |
Ending balance, December 31 | $ | 223 |  |  | $ | 216 |  |  | $ | 209 |
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate on Earnings | Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate on earnings is as follows:
| Year Ended December 31
| 2024 |  | 2023 |  | 2022
US Federal Statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal tax benefit | 0.2 |  |  | 0.9 |  |  | 1.4 |
Foreign earnings taxed at rates other than the U.S. statutory rate | 2.2 |  |  | (0.3) |  |  | (3.8) |
Foreign currency effects/remeasurement | (4.8) |  |  | 0.5 |  |  | 0.6 |
Withholding Tax | 1.8 |  |  | 0.1 |  |  | — |
Impairment of Investments | 4.3 |  |  | 0.5 |  |  | — |
Change in Uncertain Tax Position | 3.2 |  |  | 0.1 |  |  | 0.5 |
Tax benefit on U.S. biodiesel credits | (2.9) |  |  | (1.7) |  |  | (1.2) |
Second-generation biofuel credit | (1.2) |  |  | — |  |  | — |
U.S. railroad credits | (2.5) |  |  | (1.5) |  |  | (1.2) |
U.S. tax on foreign earnings | 0.6 |  |  | 1.2 |  |  | 0.2 |
Other | (0.8) |  |  | (1.5) |  |  | (0.9) |
Effective income tax rate | 21.1 | % |  | 19.3 | % |  | 16.6 | %
Schedule of Unrecognized Tax Benefits | The following table sets forth a rollforward of activity of unrecognized tax benefits for the year ended December 31, 2024 and 2023 (in millions).
| December 31,
| 2024 |  | 2023
Opening balance, January 1 | $ | 168 |  |  | $ | 151 |
Net additions related to current year’s tax positions | 12 |  |  | 2 |
Net additions related to prior years’ tax positions | 57 |  |  | 28 |
Additions (adjustments) related to acquisitions | 2 |  |  | — |
Reductions related to lapse of statute of limitations | (6) |  |  | (6) |
Settlements with tax authorities | (48) |  |  | (7) |
Ending balance, December 31 | $ | 185 |  |  | $ | 168 |

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