v3.22.4
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income before income taxes Income before income taxes is comprised of the following components:
For Years Ended December 31,
202220212020
U.S.$9,122 $7,998 $5,210 
Non-U.S.910 921 807 
Total$10,032 $8,919 $6,017 
Provision for income taxes Provision for income taxes is comprised of the following components:
For Years Ended December 31,
202220212020
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
U.S. federal$1,235 $(223)$1,012 $948 $(23)$925 $357 $(122)$235 
Non-U.S.212 32 244 169 38 207 192 (15)177 
U.S. state27 — 27 18 — 18 10 — 10 
Total$1,474 $(191)$1,283 $1,135 $15 $1,150 $559 $(137)$422 
Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate Principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:
For Years Ended December 31,
202220212020
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Foreign derived intangible income(7.0)(6.1)(6.1)
R&D tax credit(0.9)(0.9)(1.3)
Stock compensation(0.7)(1.5)(2.5)
Changes in uncertain tax positions0.1 (0.2)(4.0)
Other0.3 0.6 (0.1)
Effective tax rate12.8 %12.9 %7.0 %
Primary components of deferred tax assets and liabilities
The primary components of deferred tax assets and liabilities are as follows:
December 31,
20222021
Deferred tax assets:
Capitalized R&D$380 $— 
Deferred loss and tax credit carryforwards201 207 
Accrued expenses182 209 
Stock compensation132 110 
Inventories and related reserves88 74 
Retirement costs for defined benefit and retiree health care43 — 
Other36 40 
Total deferred tax assets, before valuation allowance1,062 640 
Valuation allowance(189)(188)
Total deferred tax assets, after valuation allowance873 452 
Deferred tax liabilities:
Property, plant and equipment(410)(197)
International earnings(35)(38)
Retirement costs for defined benefit and retiree health care— (15)
Acquisition-related intangibles and fair-value adjustments(13)(12)
Other(8)(14)
Total deferred tax liabilities(466)(276)
Net deferred tax asset$407 $176 
The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:
December 31,
20222021
Deferred tax assets$473 $263 
Deferred tax liabilities(66)(87)
Net deferred tax asset$407 $176 
Summary of uncertain tax positions The changes in the total amounts of uncertain tax positions are as follows:
202220212020
Balance, January 1$69 $89 $303 
Additions based on tax positions related to the current year3 2 3 
Additions for tax positions of prior years10 7 35 
Reductions for tax positions of prior years— (6)(249)
Settlements with tax authorities— (23)— 
Expiration of the statute of limitations for assessing taxes— — (3)
Balance, December 31$82 $69 $89 
Interest income (expense) recognized in the year ended December 31$(1)$(5)$39 
Interest payable as of December 31$3 $13 $8