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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | Following is the composition of income tax expense:
| 2021 |  | 2020 |  | 2019
Current: |  |  |  |  |
Federal(1) | $ | 938.5 |  |  | $ | 567.6 |  |  | $ | 280.2 |
Foreign | 466.0 |  |  | 650.4 |  |  | 299.8 |
State | (28.4) |  |  | (47.3) |  |  | (14.4) |
Total current tax expense | 1,376.1 |  |  | 1,170.7 |  |  | 565.6 |
Deferred: |  |  |  |  |
Federal | (977.5) |  |  | (97.4) |  |  | 141.3 |
Foreign | 174.6 |  |  | (16.6) |  |  | (24.1) |
State | 0.6 |  |  | (20.5) |  |  | (54.8) |
Total deferred tax (benefit) expense | (802.3) |  |  | (134.5) |  |  | 62.4 |
Income taxes | $ | 573.8 |  |  | $ | 1,036.2 |  |  | $ | 628.0 |
(1) The 2021, 2020, and 2019 current tax expense includes $64.7 million, $144.4 million, and $153.1 million of tax benefit, respectively, from utilization of net operating loss and tax credit carryforwards.
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31 were as follows:
| 2021 |  | 2020
Deferred tax assets: |  |  |
Purchases of intangible assets | $ | 2,347.4 |  |  | $ | 2,560.6 |
Compensation and benefits | 634.7 |  |  | 1,045.6 |
Tax credit carryforwards and carrybacks | 463.7 |  |  | 523.5 |
Tax loss and other tax carryforwards and carrybacks | 645.4 |  |  | 488.3 |
Sales rebates and discounts | 832.3 |  |  | 461.3 |
Correlative tax adjustments | 560.8 |  |  | 404.2 |
Foreign tax redeterminations | 274.9 |  |  | 242.8 |
Operating lease liabilities | 150.0 |  |  | 150.7 |
Capitalized research and development | 275.1 |  |  | 135.2 |
Other | 477.9 |  |  | 605.8 |
Total gross deferred tax assets | 6,662.2 |  |  | 6,618.0 |
Valuation allowances | (875.6) |  |  | (816.3) |
Total deferred tax assets | 5,786.6 |  |  | 5,801.7 |
Deferred tax liabilities: |  |  |
Earnings of foreign subsidiaries | (1,583.3) |  |  | (1,905.3) |
Intangibles | (1,516.1) |  |  | (1,465.7) |
Inventories | (596.4) |  |  | (623.7) |
Prepaid employee benefits | (560.6) |  |  | (410.1) |
Property and equipment | (338.7) |  |  | (315.2) |
Financial instruments | (303.0) |  |  | (216.9) |
Operating lease assets | (132.6) |  |  | (134.3) |
Total deferred tax liabilities | (5,030.7) |  |  | (5,071.2) |
Deferred tax assets - net | $ | 755.9 |  |  | $ | 730.5 |
Schedule of Cash Payments Relating to Income Taxes and Tax Act Toll Tax | Cash payments of U.S. federal, state, and foreign income taxes, net of refunds, were as follows:
| 2021 |  | 2020 |  | 2019
Cash payments of income taxes | $ | 1,598.8 |  |  | $ | 954.6 |  |  | $ | 1,180.5 |
Having made this election, our future cash payments relating to the Toll Tax as of December 31, 2021 are as follows:
| Total | Less than 1 Year | 1-3 Years | 3-5 Years
2017 Tax Act Toll Tax | $ | 2,149.5 |  | $ | 253.7 |  | $ | 1,109.9 |  | $ | 785.9 |
Schedule of Effective Income Tax Rate Reconciliation | Following is a reconciliation of the consolidated income tax expense applying the U.S. federal statutory rate to income before income taxes to reported consolidated income tax expense:
| 2021 |  | 2020 |  | 2019
Income tax at the U.S. federal statutory tax rate | $ | 1,292.6 |  |  | $ | 1,518.3 |  |  | $ | 1,105.8 |
Add (deduct): |  |  |  |  |
International operations, including Puerto Rico(1) | (458.2) |  |  | (297.2) |  |  | (242.0) |
General business credits | (100.5) |  |  | (97.9) |  |  | (108.8) |
Foreign-derived intangible income deduction | (86.7) |  |  | (71.5) |  |  | (15.5) |
Other | (73.4) |  |  | (15.5) |  |  | (111.5) |
Income taxes | $ | 573.8 |  |  | $ | 1,036.2 |  |  | $ | 628.0 |
(1) Includes the impact of Puerto Rico Excise Tax, GILTI tax, and other U.S. taxation of foreign income.
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
| 2021 |  | 2020 |  | 2019
Beginning balance at January 1 | $ | 2,551.9 |  |  | $ | 2,108.6 |  |  | $ | 2,034.6 |
Additions based on tax positions related to the current year | 310.3 |  |  | 225.6 |  |  | 187.2 |
Additions for tax positions of prior years | 98.6 |  |  | 310.8 |  |  | 425.3 |
Reductions for tax positions of prior years | (8.1) |  |  | (52.4) |  |  | (100.3) |
Settlements | (38.5) |  |  | (72.0) |  |  | (260.5) |
Lapses of statutes of limitation | (49.7) |  |  | (41.7) |  |  | (161.5) |
Changes related to the impact of foreign currency translation | (66.2) |  |  | 73.0 |  |  | (16.2) |
Ending balance at December 31 | $ | 2,798.3 |  |  | $ | 2,551.9 |  |  | $ | 2,108.6 |
We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized income tax (benefit) expense related to interest and penalties as follows:
| 2021 |  | 2020 |  | 2019
Income tax (benefit) expense | $ | 20.5 |  |  | $ | 34.0 |  |  | $ | (26.4) |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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