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Taxes on Income (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate | A reconciliation between the effective tax rate for income from continuing operations and the U.S. statutory rate is as follows:
| 2023 |  | 2022 |  | 2021
| Amount |  | Tax Rate |  | Amount |  | Tax Rate |  | Amount |  | Tax Rate
U.S. statutory rate applied to income from continuing operations before taxes | $ | 397 |  |  | 21.0 | % |  | $ | 3,453 |  |  | 21.0 | % |  | $ | 2,915 |  |  | 21.0 | %
Differential arising from: |  |  |  |  |  |  |  |  |  |  |
Acquisition of Prometheus | 2,139 |  |  | 113.3 |  |  | — |  |  | — |  |  | — |  |  | — |
Acquisition of Imago | 253 |  |  | 13.4 |  |  | — |  |  | — |  |  | — |  |  | — |
Valuation allowances | 70 |  |  | 3.7 |  |  | 108 |  |  | 0.7 |  |  | 102 |  |  | 0.7 |
Acquisition-related costs, including amortization | 42 |  |  | 2.2 |  |  | (3) |  |  | — |  |  | 8 |  |  | 0.1 |
Restructuring | 41 |  |  | 2.2 |  |  | 11 |  |  | 0.1 |  |  | 61 |  |  | 0.4 |
Foreign earnings | (941) |  |  | (49.8) |  |  | (1,821) |  |  | (11.1) |  |  | (1,456) |  |  | (10.5) |
GILTI and the foreign-derived intangible income deduction | (80) |  |  | (4.3) |  |  | 462 |  |  | 2.8 |  |  | (75) |  |  | (0.5) |
R&D tax credit | (214) |  |  | (11.3) |  |  | (117) |  |  | (0.7) |  |  | (113) |  |  | (0.8) |
State taxes | (117) |  |  | (6.2) |  |  | (110) |  |  | (0.7) |  |  | 2 |  |  | — |
Inventory donations | (65) |  |  | (3.5) |  |  | (52) |  |  | (0.3) |  |  | (41) |  |  | (0.3) |
Tax settlements | — |  |  | — |  |  | (10) |  |  | (0.1) |  |  | (275) |  |  | (2.0) |
Acquisition of Pandion | — |  |  | — |  |  | — |  |  | — |  |  | 356 |  |  | 2.6 |
Other | (13) |  |  | (0.7) |  |  | (3) |  |  | — |  |  | 37 |  |  | 0.3 |
| $ | 1,512 |  |  | 80.0 | % |  | $ | 1,918 |  |  | 11.7 | % |  | $ | 1,521 |  |  | 11.0 | %
Where applicable, the impact of changes in uncertain tax positions is reflected in the reconciling items above.
Income Before Taxes | Income from continuing operations before taxes consisted of:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
Domestic | $ | (15,622) |  |  | $ | 1,011 |  |  | $ | 1,854 |
Foreign | 17,511 |  |  | 15,433 |  |  | 12,025 |
| $ | 1,889 |  |  | $ | 16,444 |  |  | $ | 13,879 |
Taxes on Income | Taxes on income from continuing operations consisted of:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
Current provision |  |  |  |  |
Federal | $ | 928 |  |  | $ | 2,265 |  |  | $ | 74 |
Foreign | 2,435 |  |  | 1,164 |  |  | 1,273 |
State | 48 |  |  | 57 |  |  | (13) |
| 3,411 |  |  | 3,486 |  |  | 1,334 |
Deferred provision |  |  |  |  |
Federal | (1,559) |  |  | (1,510) |  |  | 240 |
Foreign | (233) |  |  | 71 |  |  | (77) |
State | (107) |  |  | (129) |  |  | 24 |
| (1,899) |  |  | (1,568) |  |  | 187 |
| $ | 1,512 |  |  | $ | 1,918 |  |  | $ | 1,521 |
Deferred Income Taxes | Deferred income taxes at December 31 consisted of:
| 2023 |  | 2022
| Assets |  | Liabilities |  | Assets |  | Liabilities
Product intangibles and licenses | $ | — |  |  | $ | 1,308 |  |  | $ | — |  |  | $ | 2,575 |
R&D capitalization | 2,099 |  |  | — |  |  | 1,341 |  |  | — |
Inventory related | 86 |  |  | 370 |  |  | 43 |  |  | 423 |
Accelerated depreciation | — |  |  | 626 |  |  | — |  |  | 666 |
Equity investments | — |  |  | 73 |  |  | — |  |  | 92 |
Pensions and other postretirement benefits | 323 |  |  | 249 |  |  | 372 |  |  | 284 |
Compensation related | 357 |  |  | — |  |  | 335 |  |  | — |
Unrecognized tax benefits | 147 |  |  | — |  |  | 91 |  |  | — |
Net operating losses and other tax credit carryforwards | 868 |  |  | — |  |  | 912 |  |  | — |
Other | 713 |  |  | 214 |  |  | 520 |  |  | 267 |
Subtotal | 4,593 |  |  | 2,840 |  |  | 3,614 |  |  | 4,307 |
Valuation allowance | (656) |  |  |  |  | (599) |  |  |
Total deferred taxes | $ | 3,937 |  |  | $ | 2,840 |  |  | $ | 3,015 |  |  | $ | 4,307 |
Net deferred income taxes | $ | 1,097 |  |  |  |  |  |  | $ | 1,292 |
Recognized as: |  |  |  |  |  |  |
Other Assets | $ | 1,968 |  |  |  |  | $ | 503 |  |  |
Deferred Income Taxes |  |  | $ | 871 |  |  |  |  | $ | 1,795 |
Income Taxes Paid | Income taxes paid in 2023, 2022 and 2021 (including amounts attributable to discontinued operations in 2021) consisted of:
Years Ended December 31 | 2023 |  | 2022 |  | 2021
Domestic (1) | $ | 2,258 |  |  | $ | 1,891 |  |  | $ | 1,211 |
Foreign | 2,080 |  |  | 1,348 |  |  | 1,201 |
| $ | 4,338 |  |  | $ | 3,239 |  |  | $ | 2,412 |
(1) Includes TCJA transition tax payments.
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2023 |  | 2022 |  | 2021
Balance January 1 | $ | 1,835 |  |  | $ | 1,529 |  |  | $ | 1,537 |
Additions related to current year positions | 553 |  |  | 344 |  |  | 306 |
Additions related to prior year positions | 91 |  |  | 48 |  |  | 63 |
Reductions for tax positions of prior years (1) | (20) |  |  | (40) |  |  | (230) |
Settlements (1) | (23) |  |  | (6) |  |  | (46) |
Lapse of statute of limitations | (52) |  |  | (40) |  |  | (58) |
Spin-off of Organon | — |  |  | — |  |  | (43) |
Balance December 31 | $ | 2,384 |  |  | $ | 1,835 |  |  | $ | 1,529 |
(1) Amount in 2021 reflects a settlement with the IRS discussed below.

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