XML 47 R25.htm IDEA: XBRL DOCUMENT
v3.25.0.1

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
INCOME TAXES | P. INCOME TAXES Components of income taxes on income before income taxes and the components of deferred tax assets and liabilities were as follows, in millions:
| 2024 |  | 2023 |  | 2022
Income before income taxes: |  |  |  |  |
U.S. | $ | 881 |  |  | $ | 968 |  |  | $ | 873 |
Foreign | 280 |  |  | 270 |  |  | 320 |
| $ | 1,161 |  |  | $ | 1,238 |  |  | $ | 1,193 |
Income tax expense: |  |  |  |  |
Currently payable: |  |  |  |  |
U.S. Federal | $ | 153 |  |  | $ | 189 |  |  | $ | 178 |
State and local | 26 |  |  | 47 |  |  | 29 |
Foreign | 80 |  |  | 74 |  |  | 96 |
Deferred: |  |  |  |  |
U.S. Federal | 14 |  |  | — |  |  | (16) |
State and local | 9 |  |  | (39) |  |  | 2 |
Foreign | 5 |  |  | 7 |  |  | (1) |
| $ | 287 |  |  | $ | 278 |  |  | $ | 288 |
Deferred tax assets at December 31: |  |  |  |  |
Receivables | $ | 8 |  |  | $ | 11 |  |  |
Inventories | 13 |  |  | 19 |  |  |
Other assets, including stock-based compensation | 8 |  |  | 9 |  |  |
Accrued liabilities | 48 |  |  | 54 |  |  |
Noncurrent operating lease liabilities | 44 |  |  | 54 |  |  |
Other long-term liabilities | 49 |  |  | 53 |  |  |
Capitalized research expenditures | 48 |  |  | 43 |  |  |
Net operating loss carryforward | 57 |  |  | 74 |  |  |
Tax credit carryforward | 8 |  |  | 10 |  |  |
| 283 |  |  | 327 |  |  |
Valuation allowance | (27) |  |  | (33) |  |  |
| 256 |  |  | 294 |  |  |
Deferred tax liabilities at December 31: |  |  |  |  |
Property and equipment | 77 |  |  | 67 |  |  |
Operating lease right-of-use assets | 45 |  |  | 57 |  |  |
Intangibles | 80 |  |  | 81 |  |  |
Investment in foreign subsidiaries | 14 |  |  | 11 |  |  |
Other | 16 |  |  | 22 |  |  |
| 232 |  |  | 238 |  |  |
Net deferred tax asset at December 31 | $ | 24 |  |  | $ | 56 |  |  |
The net deferred tax asset consisted of net deferred tax assets (included in other assets) of $62 million and $88 million, and net deferred tax liabilities (included in other liabilities) of $38 million and $32 million, at December 31, 2024 and 2023, respectively. P. INCOME TAXES (Continued) In the fourth quarter of 2023, we recognized a $29 million state income tax benefit, net of federal expense, due to a legal restructuring of certain U.S. businesses that occurred in early 2024 which allowed for the utilization of certain loss carryforwards that were not previously recognized. We continue to maintain a valuation allowance of $27 million and $33 million on certain state and foreign deferred tax assets as of December 31, 2024 and 2023, respectively, due primarily to cumulative loss positions in those jurisdictions. Our capital allocation strategy includes reinvesting in our business, maintaining an investment grade credit rating, maintaining a relevant dividend and deploying excess free cash flow to share repurchases or acquisitions. In order to provide greater flexibility in the execution of our capital allocation strategy, we may repatriate earnings from certain foreign subsidiaries. Our deferred tax balance on investment in foreign subsidiaries reflects the impact of all taxable temporary differences, including those related to substantially all undistributed foreign earnings, except those that are legally restricted, and consists primarily of foreign withholding taxes. Of the $65 million and $84 million deferred tax assets related to the net operating loss and tax credit carryforwards at December 31, 2024 and 2023, respectively, $46 million and $62 million, respectively, will expire within approximately 17 years and $19 million and $22 million, respectively, have no expiration. A reconciliation of the U.S. Federal statutory tax rate to the income tax expense on income before income taxes was as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
U.S. Federal statutory tax rate | 21 | % |  | 21 | % |  | 21 | %
State and local taxes, net of U.S. Federal tax benefit | 2 |  |  | 3 |  |  | 2 |
Higher taxes on foreign earnings | 3 |  |  | 2 |  |  | 2 |
Valuation allowances | — |  |  | (2) |  |  | — |
Stock-based compensation | (1) |  |  | (1) |  |  | — |
Other, net | — |  |  | (1) |  |  | (1) |
Effective tax rate | 25 | % |  | 22 | % |  | 24 | %
Income taxes paid were $260 million, $328 million and $281 million in 2024, 2023 and 2022, respectively. P. INCOME TAXES (Concluded) A reconciliation of the beginning and ending liability for uncertain tax positions, is as follows, in millions:
| 2024 |  | 2023
Balance at January 1 | $ | 84 |  |  | $ | 83 |
Current year tax positions: |  |  |
Additions | 14 |  |  | 17 |
Reductions | (1) |  |  | (2) |
Prior year tax positions: |  |  |
Additions | 1 |  |  | 3 |
Lapse of applicable statutes of limitation | (13) |  |  | (12) |
Settlement with tax authorities | — |  |  | (5) |
Balance at December 31 | $ | 85 |  |  | $ | 84 |
Liability for interest and penalties | 16 |  |  | 13 |
Balance at December 31, including interest and penalties | $ | 101 |  |  | $ | 97 |
If recognized, $67 million and $66 million of the liability for uncertain tax positions at December 31, 2024 and 2023, respectively, net of any U.S. Federal tax benefit, would impact our effective tax rate. Interest and penalties recognized in income tax expense were insignificant in years ended December 31, 2024, 2023 and 2022. Of the $101 million and $97 million total liability for uncertain tax positions (including related interest and penalties) at December 31, 2024 and 2023, respectively, $97 million and $93 million are recorded in other liabilities, respectively, and $4 million and $4 million are recorded as a net offset to other assets, respectively. We file income tax returns in the U.S. Federal jurisdiction, and various local, state and foreign jurisdictions. We continue to participate in the Compliance Assurance Process ("CAP"). CAP is a real-time audit of the U.S. Federal income tax return that allows the Internal Revenue Service ("IRS"), working in conjunction with us, to determine tax return compliance with the U.S. Federal tax law prior to filing the return. This program provides us with greater certainty about our tax liability for a given year within months, rather than years, of filing our annual tax return and greatly reduces the need for recording a liability for U.S. Federal uncertain tax positions. The IRS has completed their examination of our consolidated U.S. Federal tax returns through 2023. With few exceptions, we are no longer subject to state or foreign income tax examinations on filed returns for years before 2020. As a result of tax audit closings, settlements and the expiration of applicable statutes of limitation in various jurisdictions within the next 12 months, we anticipate that it is reasonably possible the liability for uncertain tax positions could be reduced by approximately $13 million.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration