Income Taxes: (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Earnings Before Income Taxes and Provision For Income Taxes

Earnings before income taxes and provision for income taxes consisted of the following for the years ended December 31, 2023, 2022 and 2021:


(in millions)	2023		2022		2021
Earnings before income taxes	$	10,450	$	11,634	$	12,232
Provision for income taxes:
United States federal and state:
Current	$	201	$	(75)	$	73
Deferred	(368)		(139)		27
Total United States	(167)		(214)		100
Outside United States:
Current	2,468		2,553		2,616
Deferred	38		(95)		(45)
Total outside United States	2,506		2,458		2,571
Total provision for income taxes	$	2,339	$	2,244	$	2,671

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:


(in millions)	2023		2022		2021
Balance at January 1,	$	72	$	89	$	72
Additions based on tax positions related to the current year	7		12		12
Additions for tax positions of previous years	1		2		15
Reductions for tax positions of prior years	(23)		(18)		(1)
Reductions due to lapse of statute of limitations	(3)		(6)		(3)
Settlements	—		(4)		—
Other	1		(3)		(6)
Balance at December 31,	$	55	$	72	$	89

Schedule of Unrecognized Tax Benefits and Liability for Contingent Income Taxes, Interest and Penalties

Unrecognized tax benefits and PMI’s liability for contingent income taxes, interest and penalties were as follows:


(in millions)	December 31, 2023		December 31, 2022		December 31, 2021
Unrecognized tax benefits	$	55	$	72	$	89
Accrued interest and penalties	9		13		18
Tax credits and other indirect benefits	(1)		(3)		(7)
Liability for tax contingencies	$	63	$	82	$	100

Schedule of Reasons Attributable to the Differences Between Effective Income Tax Rate and U.S. Federal Statutory Rate

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons for the years ended December 31, 2023, 2022 and 2021:


	2023		2022		2021
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) resulting from:
Foreign rate differences	(1.0)		(0.5)		(0.3)
Dividend repatriation cost	0.8		0.7		0.6

Global intangible low-taxed income	2.0		1.0		0.8
U.S. state taxes	(0.1)		0.1		0.2
Foreign derived intangible income	(0.9)		(0.8)		(0.7)
Foreign exchange	(1.6)		(1.7)		—
Non-deductible goodwill impairment	1.3		—		—
Unremitted earnings of Russian subsidiaries	1.7		—		—
Other	(0.8)		(0.5)		0.2
Effective tax rate	22.4	%	19.3	%	21.8	%

Schedule of Temporary Differences of Tax Effects to Deferred Income Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following:


	At December 31,
(in millions)	2023		2022
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	223	$	217
Accrued pension costs	450		277
Inventory	27		22
Accrued liabilities	191		158
Net operating loss, tax credit, and other carryforwards	501		384
Foreign exchange	149		—
Other	19		—
Total deferred income tax assets	1,560		1,058
Less: valuation allowance	(369)		(378)
Deferred income tax assets, net of valuation allowance	1,191		680
Deferred income tax liabilities:
Intangible assets	(2,136)		(1,485)
Property, plant and equipment	(218)		(200)
Unremitted earnings	(358)		(141)
Foreign exchange	—		(175)
Other	—		(32)
Total deferred income tax liabilities	(2,712)		(2,033)
Net deferred income tax assets (liabilities)	$	(1,521)	$	(1,353)