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Taxes on Income (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Reconciliation Between Effective Tax Rate and U.S. Statutory Rate | A reconciliation between the effective tax rate and the U.S. statutory rate is as follows:
| 2024 |  | 2023 |  | 2022
| Amount |  | Tax Rate |  | Amount |  | Tax Rate |  | Amount |  | Tax Rate
U.S. statutory rate applied to income before taxes | $ | 4,186 |  |  | 21.0 | % |  | $ | 397 |  |  | 21.0 | % |  | $ | 3,453 |  |  | 21.0 | %
Differential arising from: |  |  |  |  |  |  |  |  |  |  |
Foreign earnings | (1,301) |  |  | (6.5) |  |  | (941) |  |  | (49.8) |  |  | (1,821) |  |  | (11.1) |
Tax settlements and statute lapses | (557) |  |  | (2.8) |  |  | — |  |  | — |  |  | (10) |  |  | (0.1) |
R&D tax credit | (202) |  |  | (1.0) |  |  | (214) |  |  | (11.3) |  |  | (117) |  |  | (0.7) |
Inventory donations | (71) |  |  | (0.4) |  |  | (65) |  |  | (3.5) |  |  | (52) |  |  | (0.3) |
State taxes | (39) |  |  | (0.2) |  |  | (117) |  |  | (6.2) |  |  | (110) |  |  | (0.7) |
Charges for certain research and development asset acquisitions | 554 |  |  | 2.8 |  |  | 253 |  |  | 13.4 |  |  | — |  |  | — |
Valuation allowances | 54 |  |  | 0.3 |  |  | 70 |  |  | 3.7 |  |  | 108 |  |  | 0.7 |
Restructuring | 52 |  |  | 0.3 |  |  | 41 |  |  | 2.2 |  |  | 11 |  |  | 0.1 |
GILTI and the foreign-derived intangible income deduction | 29 |  |  | 0.1 |  |  | (80) |  |  | (4.3) |  |  | 462 |  |  | 2.8 |
Acquisition-related costs, including amortization | 18 |  |  | 0.1 |  |  | 42 |  |  | 2.2 |  |  | (3) |  |  | — |
Acquisition of Prometheus | — |  |  | — |  |  | 2,139 |  |  | 113.3 |  |  | — |  |  | — |
Other | 80 |  |  | 0.4 |  |  | (13) |  |  | (0.7) |  |  | (3) |  |  | — |
| $ | 2,803 |  |  | 14.1 | % |  | $ | 1,512 |  |  | 80.0 | % |  | $ | 1,918 |  |  | 11.7 | %
Where applicable, the impact of changes in uncertain tax positions is reflected in the reconciling items above.
Income Before Taxes | Income before taxes consisted of:
Years Ended December 31 | 2024 |  | 2023 |  | 2022
Domestic | $ | (1,849) |  |  | $ | (15,622) |  |  | $ | 1,011 |
Foreign | 21,785 |  |  | 17,511 |  |  | 15,433 |
| $ | 19,936 |  |  | $ | 1,889 |  |  | $ | 16,444 |
Taxes on Income | Taxes on income consisted of:
Years Ended December 31 | 2024 |  | 2023 |  | 2022
Current provision |  |  |  |  |
Federal | $ | 944 |  |  | $ | 928 |  |  | $ | 2,265 |
Foreign | 3,123 |  |  | 2,435 |  |  | 1,164 |
State | (15) |  |  | 48 |  |  | 57 |
| 4,052 |  |  | 3,411 |  |  | 3,486 |
Deferred provision |  |  |  |  |
Federal | (1,475) |  |  | (1,559) |  |  | (1,510) |
Foreign | 212 |  |  | (233) |  |  | 71 |
State | 14 |  |  | (107) |  |  | (129) |
| (1,249) |  |  | (1,899) |  |  | (1,568) |
| $ | 2,803 |  |  | $ | 1,512 |  |  | $ | 1,918 |
Deferred Income Taxes | Deferred income taxes at December 31 consisted of:
| 2024 |  | 2023
| Assets |  | Liabilities |  | Assets |  | Liabilities
Product intangibles and licenses | $ | 71 |  |  | $ | 978 |  |  | $ | — |  |  | $ | 1,308 |
R&D capitalization | 3,062 |  |  | — |  |  | 2,099 |  |  | — |
Inventory related | 84 |  |  | 413 |  |  | 86 |  |  | 370 |
Accelerated depreciation | — |  |  | 645 |  |  | — |  |  | 626 |
Undistributed foreign earnings | 275 |  |  | 371 |  |  | 76 |  |  | 118 |
Equity investments | — |  |  | 90 |  |  | — |  |  | 73 |
Pensions and other postretirement benefits | 224 |  |  | 400 |  |  | 323 |  |  | 249 |
Compensation related | 400 |  |  | — |  |  | 357 |  |  | — |
Unrecognized tax benefits | 152 |  |  | — |  |  | 147 |  |  | — |
Net operating losses and other tax credit carryforwards | 910 |  |  | — |  |  | 868 |  |  | — |
Other | 802 |  |  | 159 |  |  | 755 |  |  | 214 |
Subtotal | 5,980 |  |  | 3,056 |  |  | 4,711 |  |  | 2,958 |
Valuation allowance | (710) |  |  |  |  | (656) |  |  |
Total deferred taxes | $ | 5,270 |  |  | $ | 3,056 |  |  | $ | 4,055 |  |  | $ | 2,958 |
Net deferred income taxes | $ | 2,214 |  |  |  |  | $ | 1,097 |  |  |
Recognized as: |  |  |  |  |  |  |
Other Assets | $ | 3,601 |  |  |  |  | $ | 1,968 |  |  |
Deferred Income Taxes |  |  | $ | 1,387 |  |  |  |  | $ | 871 |
Income Taxes Paid | Income taxes paid in 2024, 2023 and 2022 consisted of:
Years Ended December 31 | 2024 |  | 2023 |  | 2022
Domestic (1) | $ | 974 |  |  | $ | 2,258 |  |  | $ | 1,891 |
Foreign | 2,954 |  |  | 2,080 |  |  | 1,348 |
| $ | 3,928 |  |  | $ | 4,338 |  |  | $ | 3,239 |
(1) Includes TCJA transition tax payments.
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| 2024 |  | 2023 |  | 2022
Balance January 1 | $ | 2,384 |  |  | $ | 1,835 |  |  | $ | 1,529 |
Additions related to current year positions | 421 |  |  | 553 |  |  | 344 |
Additions related to prior year positions | 35 |  |  | 91 |  |  | 48 |
Reductions for tax positions of prior years | (33) |  |  | (20) |  |  | (40) |
Settlements | (18) |  |  | (23) |  |  | (6) |
Lapse of statute of limitations (1) | (528) |  |  | (52) |  |  | (40) |
Balance December 31 | $ | 2,261 |  |  | $ | 2,384 |  |  | $ | 1,835 |
(1) Amount in 2024 reflects a reduction of $451 million resulting from the expiration of the statute of limitations related to the 2019 and 2020 federal tax return years.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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