INCOME TAXES (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Income Tax Expense Benefit |
The income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022 consists of the following (in millions):
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2024 |
|
2023 |
|
2022 |
| Current: |
|
|
|
|
|
| U.S. Federal |
$ |
1,093 |
|
|
$ |
1,012 |
|
|
$ |
2,006 |
|
| U.S. State and Local |
172 |
|
|
195 |
|
|
273 |
|
| Non-U.S. |
410 |
|
|
459 |
|
|
467 |
|
| Total Current |
1,675 |
|
|
1,666 |
|
|
2,746 |
|
| Deferred: |
|
|
|
|
|
| U.S. Federal |
38 |
|
|
150 |
|
|
296 |
|
| U.S. State and Local |
(30) |
|
|
20 |
|
|
136 |
|
| Non-U.S. |
(23) |
|
|
29 |
|
|
99 |
|
| Total Deferred |
(15) |
|
|
199 |
|
|
531 |
|
| Total Income Tax Expense |
$ |
1,660 |
|
|
$ |
1,865 |
|
|
$ |
3,277 |
|
|
| Income Before Income Taxes |
Income before income taxes includes the following components (in millions):
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2024 |
|
2023 |
|
2022 |
| United States |
$ |
5,839 |
|
|
$ |
6,246 |
|
|
$ |
12,276 |
|
| Non-U.S. |
1,603 |
|
|
2,327 |
|
|
2,549 |
|
Total Income Before Income Taxes |
$ |
7,442 |
|
|
$ |
8,573 |
|
|
$ |
14,825 |
|
|
| Reconciliation of Statutory Federal Income Tax Rate to Effective Income Tax Rate |
A reconciliation of the statutory federal income tax rate to the effective income tax rate for the years ended 2024, 2023 and 2022 consists of the following:
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2024 |
|
2023 |
|
2022 |
| Statutory U.S. federal income tax rate |
21.0 |
% |
|
21.0 |
% |
|
21.0 |
% |
U.S. state and local income taxes (net of federal benefit) |
1.8 |
|
|
1.9 |
|
|
2.0 |
|
| Non-U.S. tax rate differential |
— |
|
|
(0.6) |
|
|
0.1 |
|
FDII and GILTI, net(1)
|
(1.2) |
|
|
(0.9) |
|
|
(0.7) |
|
| U.S. federal tax credits |
(0.8) |
|
|
(0.7) |
|
|
(0.5) |
|
| Goodwill and other asset impairments |
— |
|
|
0.1 |
|
|
— |
|
| Net uncertain tax positions |
0.2 |
|
|
(0.5) |
|
|
0.4 |
|
| Other |
1.3 |
|
|
1.5 |
|
|
(0.2) |
|
| Effective income tax rate |
22.3 |
% |
|
21.8 |
% |
|
22.1 |
% |
(1) Foreign-Derived Intangible Income ("FDII") and Global Intangible Low-Taxed Income ("GILTI")
|
| Deferred Tax Liabilities and Assets |
Deferred income tax assets and liabilities are comprised of the following as of December 31, 2024 and 2023 (in millions):
|
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|
|
|
|
|
|
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|
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|
|
2024 |
|
2023 |
| Fixed assets and capitalized software |
$ |
(5,914) |
|
|
$ |
(5,974) |
|
|
|
|
|
| Operating lease right-of-use assets |
(943) |
|
|
(1,017) |
|
| Other |
(612) |
|
|
(605) |
|
| Deferred tax liabilities |
(7,469) |
|
|
(7,596) |
|
|
|
|
|
| Pension and postretirement benefits |
1,474 |
|
|
1,304 |
|
| Loss and credit carryforwards |
308 |
|
|
232 |
|
| Insurance reserves |
646 |
|
|
626 |
|
|
|
|
|
|
|
|
|
| Accrued employee compensation |
352 |
|
|
354 |
|
| Operating lease liabilities |
1,021 |
|
|
1,073 |
|
| Other |
367 |
|
|
480 |
|
| Deferred tax assets |
4,168 |
|
|
4,069 |
|
| Deferred tax assets valuation allowance |
(182) |
|
|
(119) |
|
| Deferred tax asset (net of valuation allowance) |
3,986 |
|
|
3,950 |
|
|
|
|
|
| Net deferred tax asset (liability) |
$ |
(3,483) |
|
|
$ |
(3,646) |
|
|
|
|
|
Amounts recognized in our consolidated balance sheets: |
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|
|
|
|
|
|
|
|
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| Deferred tax assets |
$ |
112 |
|
|
$ |
126 |
|
| Deferred tax liabilities |
(3,595) |
|
|
(3,772) |
|
| Net deferred tax asset (liability) |
$ |
(3,483) |
|
|
$ |
(3,646) |
|
|
| U.S. State and Local Operating Loss and Credit Carryforwards |
Further, we have U.S. state and local operating loss and credit carryforwards as follows (in millions):
|
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|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
| U.S. state and local operating loss carryforwards |
$ |
1,043 |
|
|
$ |
762 |
|
| U.S. state and local credit carryforwards |
$ |
47 |
|
|
$ |
48 |
|
|
| Schedule of Unrecognized Tax Benefits Roll Forward |
The following table summarizes the activity related to our uncertain tax positions (in millions):
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|
Tax |
|
Interest |
|
Penalties |
Balance as of January 1, 2022 |
$ |
480 |
|
|
$ |
78 |
|
|
$ |
2 |
|
| Additions for tax positions of the current year |
56 |
|
|
— |
|
|
— |
|
| Additions for tax positions of prior years |
25 |
|
|
30 |
|
|
2 |
|
| Reductions for tax positions of prior years for: |
|
|
|
|
|
| Changes based on facts and circumstances |
(9) |
|
|
(1) |
|
|
— |
|
| Settlements during the period |
(10) |
|
|
(1) |
|
|
— |
|
| Lapses of applicable statute of limitations |
(9) |
|
|
(2) |
|
|
— |
|
Balance as of December 31, 2022 |
533 |
|
|
104 |
|
|
4 |
|
| Additions for tax positions of the current year |
26 |
|
|
— |
|
|
— |
|
| Additions for tax positions of prior years |
147 |
|
|
37 |
|
|
1 |
|
| Reductions for tax positions of prior years for: |
|
|
|
|
|
| Changes based on facts and circumstances |
(164) |
|
|
(24) |
|
|
(1) |
|
| Settlements during the period |
(47) |
|
|
(9) |
|
|
— |
|
| Lapses of applicable statute of limitations |
(3) |
|
|
— |
|
|
— |
|
Balance as of December 31, 2023 |
492 |
|
|
108 |
|
|
4 |
|
| Additions for tax positions of the current year |
33 |
|
|
— |
|
|
— |
|
| Additions for tax positions of prior years |
52 |
|
|
33 |
|
|
— |
|
| Reductions for tax positions of prior years for: |
|
|
|
|
|
| Changes based on facts and circumstances |
(81) |
|
|
(11) |
|
|
(1) |
|
| Settlements during the period |
(33) |
|
|
(5) |
|
|
— |
|
| Lapses of applicable statute of limitations |
(16) |
|
|
(3) |
|
|
— |
|
Balance as of December 31, 2024 |
$ |
447 |
|
|
$ |
122 |
|
|
$ |
3 |
|
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