v3.25.2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
The sources of Income from operations before income taxes are as follows:

(In millions)202420232022
United States$1,948 $1,398 $1,528 
Foreign326 601 2,295 
Total$2,274 $1,999 $3,823 
Schedule of Components of Income Tax Expense (Benefit)
The income tax expense (benefit) consisted of the following components:

(In millions)202420232022
Current:
United States:
Federal $920 $361 $405 
State120 110 106 
Foreign374 293 211 
1,414 764 722 
Future:
United States:
Federal(90)(135)(10)
State(13)(28)(26)
Foreign(249)(80)(70)
(352)(243)(106)
Income tax expense$1,062 $521 $616 
Schedule of Effective Income Tax Rate Reconciliation
The differences between the effective income tax rate and the statutory U.S. federal income tax rate are as follows:

202420232022
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
State income tax2.4 2.4 1.4 
Taxes on international activities(0.2)4.9 (0.9)
CCR divestiture impact(2.0)— — 
VCS reorganization impact28.6 — — 
TCC acquisition impact— — (4.7)
Other(3.1)(2.2)(0.7)
Effective income tax rate46.7 %26.1 %16.1 %
Schedule of Deferred Tax Assets and Liabilities
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and obligations as of December 31, 2024 and 2023, are as follows:

(In millions)20242023
Future income tax benefits:
Insurance and employee benefits$142 $155 
Other assets basis differences576 413 
Other liabilities basis differences674 531 
Tax loss carryforwards178 159 
Tax credit carryforwards1,404 1,332 
Valuation allowances(1,442)(1,372)
Future income tax benefits$1,532 $1,218 
Future income tax obligations:
Goodwill and intangible assets$(1,769)$(401)
Other asset basis differences(381)(389)
Future income tax obligations$(2,150)$(790)
Schedule of Valuation Allowance
Changes to valuation allowances consisted of the following:

(In millions)
Balance as of January 1, 2022$90 
Additions charged to income tax expense18 
Reduction credited to income tax expense(22)
Other adjustments14 
Reclassified to held for sale(17)
Balance at December 31, 2022$83 
Additions charged to income tax expense27 
Reduction credited to income tax expense(22)
Other adjustments (1)
1,303 
Reclassified to held for sale(19)
Balance at December 31, 2023$1,372 
Additions charged to income tax expense 46 
Reduction credited to income tax expense(41)
Other adjustments65 
Balance as of December 31, 2024$1,442 
(1) See discussion below regarding the Swiss tax credit.
Schedule of Tax Credit and Loss Carryforwards
As of December 31, 2024, tax credit carryforwards and tax loss carryforwards were as follows:

(In millions)Tax Loss CarryforwardsTax Credit Carryforwards
Expiration period:
2025-2029$525 $15 
2030-203421 1,375 
2035-204477 — 
Indefinite457 14 
Total$1,080 $1,404 
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the beginning and ending amounts of unrecognized tax benefits and related interest expense is as follows:
(In millions)202420232022
Balance at beginning of period$382 $291 $251 
Additions for tax positions related to the current year34 37 34 
Additions for tax positions of prior years (1)
30 81 32 
Reductions for tax positions of prior years(7)— (13)
Settlements(68)(27)(13)
Reclassified to other accounts(6)— — 
Balance at end of period$365 $382 $291 
Gross interest expense related to unrecognized tax benefits$19 $18 $16 
Total accrued interest balance at end of period$57 $64 $48 
(1) Includes $73 million during the year ended December 31, 2023, related to acquisitions.