v3.25.0.1
Income Taxes: (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
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, 2024, 2023 and 2022:
(in millions)
202420232022
Earnings before income taxes
$12,199 $10,450 $11,634 
Provision for income taxes:
United States federal and state:
Current
$465 $201 $(75)
Deferred
(81)(368)(139)
Total United States
384 (167)(214)
Outside United States:
Current
2,668 2,468 2,553 
Deferred
(35)38 (95)
Total outside United States
2,633 2,506 2,458 
Total provision for income taxes
$3,017 $2,339 $2,244 
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
(in millions)
202420232022
Balance at January 1,$55 $72 $89 
Additions based on tax positions related to the current year
6 7 12 
Additions for tax positions of previous years
1 1 2 
Reductions for tax positions of prior years
— (23)(18)
Reductions due to lapse of statute of limitations
(2)(3)(6)
Settlements
— — (4)
Other
(4)1 (3)
Balance at December 31,$56 $55 $72 
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, 2024December 31, 2023December 31, 2022
Unrecognized tax benefits
$56 $55 $72 
Accrued interest and penalties
11 9 13 
Tax credits and other indirect benefits
(1)(1)(3)
Liability for tax contingencies
$66 $63 $82 
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, 2024, 2023 and 2022:
202420232022
U.S. federal statutory rate21.0 %21.0 %21.0 %
Increase (decrease) resulting from:
Foreign rate differences(1.6)(1.0)(0.5)
Dividend repatriation cost0.6 0.7 0.6 
Global intangible low-taxed income1.7 2.0 1.0 
U.S. state taxes0.6 (0.1)0.1 
Foreign derived intangible income(0.7)(0.9)(0.8)
Foreign exchange1.7 (1.6)(1.7)
Non-deductible goodwill impairment— 1.3 — 
Unremitted earnings of Russian subsidiaries0.6 1.7 — 
Fair value adjustment of equity securities1.1 0.1 0.1 
Other(0.3)(0.8)(0.5)
Effective tax rate24.7 %22.4 %19.3 %
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)
20242023
Deferred income tax assets:
Accrued postretirement and postemployment benefits$208 $223 
Accrued pension costs384 450 
Inventory40 27 
Accrued liabilities213 191 
Net operating loss, tax credit, and other carryforwards 912 501 
Investments in equity interests507 80 
Foreign exchange— 149 
Other62 19 
Total deferred income tax assets2,326 1,640 
Less: valuation allowance(1,130)(369)
Deferred income tax assets, net of valuation allowance1,196 1,271 
Deferred income tax liabilities:
Intangible assets(1,862)(2,136)
Property, plant and equipment(152)(218)
Unremitted earnings(495)(438)
Foreign exchange(264)— 
Other— — 
Total deferred income tax liabilities
(2,773)(2,792)
Net deferred income tax assets (liabilities)$(1,577)$(1,521)