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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes the difference between an income tax benefit and tax expense at the United States statutory rate of 21% in 2023, 2022, and 2021, respectively, and the income tax expense at effective worldwide tax rates for the respective periods:

Millions of dollars						2023						2022						2021
Earnings (loss) before income taxes
United States						$	9					$	(158)					$	1,287
Foreign						584						(1,069)						1,045
Earnings (loss) before income taxes						$	593					$	(1,227)					$	2,332
Income tax (benefit) expense computed at United States statutory rate						$	125					$	(258)					$	490
U.S. government tax incentives						(20)						(19)						(19)
Foreign government tax incentives						(30)						(23)						(23)
Foreign tax rate differential						41						(3)						66
U.S. foreign tax credits						(43)						11						(29)
Valuation allowances						78						222						1
State and local taxes, net of federal tax benefit						(43)						(21)						57
Foreign withholding taxes						13						52						19
U.S. tax on foreign dividends and subpart F income						36						22						9
Settlements and changes in unrecognized tax benefits						43						3						100
Changes in enacted tax rates						1						(2)						(14)
Nondeductible loss on sale and disposal of businesses						5						421						—
Nondeductible fines and penalties						18						—						—
Nondeductible goodwill impairments						—						59						—
Legal Entity Debt Restructuring						—						(159)						—
Divestiture tax impact						—						—						(35)
Legal entity restructuring tax impact						(172)						—						(98)
Other items, net						25						(40)						(6)
Income tax computed at effective worldwide tax rates						$	77					$	265					$	518

Schedule of Components of Income Tax (Benefit) Provision

The following table summarizes our income tax (benefit) provision for 2023, 2022 and 2021:

			2023												2022												2021
Millions of dollars			Current						Deferred						Current						Deferred						Current						Deferred
United States			$	(27)					$	(212)					$	(40)					$	65					$	132					$	251
Foreign			197						155						180						85						184						(126)
State and local			(3)						(33)						(9)						(16)						80						(3)
			$	167					$	(90)					$	131					$	134					$	396					$	122
Total income tax expense									$	77											$	265											$	518

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the significant components of our deferred tax liabilities and assets at December 31, 2023 and 2022:

Millions of dollars						2023						2022
Deferred tax liabilities
Intangibles						$	429					$	329
Property, net						224						185
Right of use assets						190						220
Inventory Reserves						(3)						20
Other						238						168
Total deferred tax liabilities						$	1,078					$	922
Deferred tax assets
U.S. general business credit carryforwards, including Energy Tax Credits						$	365					$	421
Corporate Alternative Minimum Tax credits						28						—
Lease liabilities						200						231
Pensions						64						40
Loss carryforwards						1,388						1,300
Postretirement obligations						29						30
Foreign tax credit carryforwards						94						9
Research and development capitalization						315						194
Employee payroll and benefits						48						46
Accrued expenses						52						52
Product warranty accrual						49						48
Receivable and inventory allowances						67						61
Other						676						552
Total deferred tax assets						3,375						2,984
Valuation allowances for deferred tax assets						(490)						(412)
Deferred tax assets, net of valuation allowances						2,885						2,572
Reclassification of net deferred tax assets to held for sale						(515)						(602)
Net deferred tax assets						$	1,292					$	1,048

Schedule of Unrecognized Tax Benefits

The following table represents a reconciliation of the beginning and ending amount of unrecognized tax benefits that if recognized would impact the effective tax rate, excluding federal benefits of state and local tax positions, and interest and penalties:

Millions of dollars						2023						2022						2021
Balance, January 1						$	589					$	580					$	427
Additions for tax positions of the current year						13						24						17
Additions for tax positions of prior years						22						32						179
Reductions for tax positions of prior years						(56)						(45)						(34)
Settlements during the period (1)						(188)						(1)						(7)
Lapses of applicable statute of limitation						—						(1)						(2)
Balance, December 31						$	380					$	589					$	580

(1) During the fourth quarter of 2023, the Company resolved a number of disputed tax positions with the U.S. and other tax authorities. The Company had previously recorded reserves for the risk associated with these tax positions, and the settlement of these matters resulted in a reduction in the Company's unrecognized tax benefits, which is shown in the table above.

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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 the change in unrecognized tax benefits, excluding amounts pertaining to examined tax returns.

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