v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule Of Income Before Taxes
 Years Ended December 31,
202520242023
U.S.$373 $1,442 $1,652 
Non-U.S.5,103 4,802 4,539 
Total Income before taxes$5,476 $6,244 $6,191 
Schedule Of Tax Expense (Benefit)
Tax expense consists of:
 Years Ended December 31,
202520242023
Current   
U.S. Federal$49 $478 $13 
U.S. State27 57 22 
Non-U.S.914 943 1,038 
Total current tax expense990 1,478 1,073 
Deferred
U.S. Federal10 (209)58 
U.S. State(54)(23)17 
Non-U.S.62 3 114 
Total deferred tax expense (benefit)
18 (229)189 
Total Tax expense
$1,008 $1,249 $1,262 
Schedule Of Effective income tax rate reconciliation
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:
December 31, 2025
AmountPercent
U.S. federal statutory income tax rate1,150 21.0 
State and local income taxes, net of federal income tax effect1
(45)(0.8)
Foreign tax effects
Puerto Rico
Statutory tax rate difference between Puerto Rico and United States124 2.3 
Preferential tax rate(252)(4.6)
Other54 1.0 
Switzerland
Statutory tax rate difference between Switzerland and United States(278)(5.1)
Subnational tax effects144 2.6 
Other(23)(0.4)
Other foreign jurisdictions265 4.9 
Effect of cross-border tax laws
Global intangible low-taxed income153 2.8 
Other(82)(1.5)
Tax credits
Research and development tax credits(214)(3.9)
Other(3)(0.1)
Changes in valuation allowance129 2.4 
Nontaxable or nondeductible items
Impairment losses164 3.0 
Indemnification termination gain(168)(3.1)
Other4 0.1 
Changes in unrecognized tax benefits(24)(0.4)
Other adjustments
Outside basis differences(71)(1.3)
Other(19)(0.5)
Effective income tax rate$1,008 18.4 %
1
State taxes in Arizona and Illinois made up the majority (greater than 50 percent) of the tax effect in this category.
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows:
 Years Ended December 31,
20242023
U.S. federal statutory income tax rate21.0 %21.0 %
Taxes on non-U.S. earnings1,2,3
(0.7)(2.4)
U.S. state income taxes1
0.6 0.2 
Reserves for tax contingencies1.6 3.9 
Employee stock compensation(0.7)(0.3)
Restructuring4
(0.3)— 
U.S. federal tax credits
(2.2)(1.7)
U.S. valuation allowance4
1.0 (0.1)
All other items—net(0.3)(0.2)
Effective income tax rate20.0 %20.4 %
1
Net of changes in valuation allowance.
2
Includes U.S. taxes on non-U.S. earnings, net of foreign tax credits.
3
2023 includes (4.2)% deferred tax benefit resulting from a non-U.S. legislative change, offset by 4.2% deferred tax expense resulting from a full valuation allowance.
4
2024 includes (1.0)% deferred tax benefit resulting from an outside basis difference in assets held for sale, offset by 1.0% deferred tax expense resulting from a full valuation allowance.
Schedule Of Deferred Tax Assets (Liabilities)
The tax effects of temporary differences and tax carryforwards which give rise to future income tax benefits and payables are as follows:
Deferred tax assetsDecember 31,
20252024
Postretirement benefits other than pensions$45 $50 
Asbestos and environmental189 373 
Capitalized research and development917 946 
Employee compensation and benefits104 130 
Lease liabilities212 228 
Other accruals and reserves389 375 
Net operating losses650 618 
Capital loss carryover and outside basis differences544 467 
Tax credit carryforwards and other attributes648 269 
Gross deferred tax assets3,698 3,456 
Valuation allowance(1,374)(1,253)
Total deferred tax assets2,324 2,203 
Deferred tax liabilities
Deferred revenue(175)(244)
Pension(1,339)(1,481)
Property, plant and equipment
(351)(212)
Right-of-use asset(198)(198)
Intangibles(886)(654)
Unremitted earnings of foreign subsidiaries(482)(488)
Other asset basis differences(271)(272)
Total deferred tax liabilities(3,702)(3,549)
Net deferred tax liability1
$(1,378)$(1,346)
1
As of December 31, 2025, Net deferred tax liability excludes $136 million of deferred tax assets that are included in Assets held for sale in the Consolidated Balance Sheet. As of December 31, 2024, Net deferred tax liability excludes $124 million of deferred tax liabilities that are included in Liabilities held for sale in the Consolidated Balance Sheet. Refer to Note 2 Acquisitions, Divestitures, and Discontinued Operations.
Summary of Operating Loss Carryforwards
As of December 31, 2025, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$697 $72 
U.S. State267 21 
Non-U.S.3,611 223 
Total
$4,575 $316 
Summary of Tax Credit Carryforwards
As of December 31, 2025, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$697 $72 
U.S. State267 21 
Non-U.S.3,611 223 
Total
$4,575 $316 
Summary of Capital Loss Carryforwards
As of December 31, 2025, the Company's net operating loss, capital loss, tax credit carryforwards, and other attributes were as follows:
JurisdictionNet Operating
and Capital Loss
Carryforwards
Tax Credit
Carryforwards and Other Attributes
U.S. Federal$697 $72 
U.S. State267 21 
Non-U.S.3,611 223 
Total
$4,575 $316 
Schedule of Unrecognized Tax Benefits Roll Forward
The table below summarizes the Company's change in unrecognized tax benefits for the years ended December 31, 2025, 2024, and 2023:
Years Ended December 31,
202520242023
Change in unrecognized tax benefits   
Balance at beginning of year$1,201 $1,215 $1,077 
Gross increases related to current period tax positions30 64 89 
Gross increases related to prior periods tax positions99 12 181 
Gross decreases related to prior periods tax positions(2)(17)— 
Decrease related to resolutions of audits with tax authorities(91)(31)(132)
Expiration of the statute of limitations for the assessment of taxes(44)(9)(3)
Foreign currency translation45 (33)3 
Balance at end of year$1,238 $1,201 $1,215 
Summary of Income Tax Examinations
The following table summarizes tax years that remain subject to examination by major tax jurisdictions as of December 31, 2025:
JurisdictionOpen Tax Years
Examination in progressExamination not yet initiated
U.S. Federal2017-20212022-2025
U.S. State2013-20242025
Canada2018-20212022-2025
China2013-20242025
Germany
2017-20202021-2025
India2006-20202021-2025
Malaysia2019-20232024-2025
Puerto RicoN/A2020-2025
SwitzerlandN/A2020-2025
United Kingdom2013-20232024-2025
Supplemental Cash Flow Information
The amounts of cash taxes paid by the Company for continuing and discontinued operations are as follows:
December 31, 2025
Federal$658 
State42
Foreign
Canada105
China156
Switzerland224
All other foreign613 
Income taxes paid, net of refunds$1,798 
 Years Ended December 31,
202520242023
Net payments for repositioning and other charges
Severance and exit cost payments$(153)$(189)$(280)
Environmental payments(175)(221)(196)
Reimbursement receipts105 140 140 
Insurance receipts for asbestos-related liabilities17 24 39 
Insurance receivables settlements, write-offs, and other— 9 26 
Asbestos-related liability payments(172)(233)(174)
Total net payments for repositioning and other charges$(378)$(470)$(445)
Interest paid, net of amounts capitalized1
$1,300 $869 $649 
Income taxes paid, net of refunds1
1,798 1,689 1,581 
Non-cash investing and financing activities
Common stock contributed to savings plans1
276 225 216 
1
Amounts include both continuing and discontinued operations.