INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of components of income taxes expense (benefit) from continuing operations

Components of income taxes on income from continuing operations and the components of deferred tax assets and liabilities were as follows, in millions:


	2022		2021		2020
Income from continuing operations before income taxes:
U.S.	$	873	$	374	$	892
Foreign	320		314		239
	$	1,193	$	688	$	1,131
Income tax expense:
Currently payable:
U.S. Federal	$	178	$	145	$	170
State and local	29		40		33
Foreign	96		93		69
Deferred:
U.S. Federal	(16)		(57)		(9)
State and local	2		(10)		11
Foreign	(1)		(1)		(5)
	$	288	$	210	$	269
Deferred tax assets at December 31:
Receivables	$	10	$	14
Inventories	21		17
Other assets, including stock-based compensation	13		13
Accrued liabilities	52		58
Noncurrent operating lease liabilities	50		40
Other long-term liabilities	51		79
Capitalized research expenditures	20		5
Net operating loss carryforward	21		26
Tax credit carryforward	11		11
	249		263
Valuation allowance	(15)		(17)
	234		246
Deferred tax liabilities at December 31:
Property and equipment	56		62
Operating lease right-of-use assets	53		43
Intangibles	65		75
Investment in foreign subsidiaries	10		10
Other investments	—		3
Other	17		16
	201		209
Net deferred tax asset at December 31	$	33	$	37

Schedule of reconciliation of the U.S. Federal statutory tax rate to the income tax expense (benefit) on income (loss) from continuing operations

A reconciliation of the U.S. Federal statutory tax rate to the income tax expense on income from continuing operations before income taxes was as follows:


	Year Ended December 31,
	2022		2021		2020
U.S. Federal statutory tax rate	21	%	21	%	21	%
State and local taxes, net of U.S. Federal tax benefit	2		4		3
Higher taxes on foreign earnings	2		3		1

Stock-based compensation	—		(1)		(1)
Business divestiture with no tax impact	—		1		—
Disproportionate tax effects	—		2		—
Other, net	(1)		1		—
Effective tax rate	24	%	31	%	24	%

Schedule of reconciliation of the beginning and ending liability for uncertain tax positions, including related interest and penalties

A reconciliation of the beginning and ending liability for uncertain tax positions, is as follows, in millions:


	2022		2021
Balance at January 1	$	81	$	74
Current year tax positions:
Additions	21		19
Reductions	(5)		(2)
Prior year tax positions:
Additions	—		1
Reductions	(3)		(1)
Lapse of applicable statutes of limitation	(11)		(10)
Balance at December 31	$	83	$	81
Liability for interest and penalties	11		11
Balance at December 31, including interest and penalties	$	94	$	92