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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | Following is the composition of income tax expense:
| 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal(1) | $ | 3,017.9 |  |  | $ | 2,153.6 |  |  | $ | 938.5 |
Foreign | 613.0 |  |  | 547.7 |  |  | 466.0 |
State | 24.3 |  |  | 45.5 |  |  | (28.4) |
Total current tax expense | 3,655.2 |  |  | 2,746.8 |  |  | 1,376.1 |
Deferred: |  |  |  |  |
Federal | (2,369.0) |  |  | (1,992.4) |  |  | (977.5) |
Foreign | 34.2 |  |  | (78.2) |  |  | 174.6 |
State | (6.2) |  |  | (114.6) |  |  | 0.6 |
Total deferred tax benefit | (2,341.0) |  |  | (2,185.2) |  |  | (802.3) |
Income taxes | $ | 1,314.2 |  |  | $ | 561.6 |  |  | $ | 573.8 |
(1) The 2023, 2022, and 2021 current tax expense includes $69.3 million, $189.5 million, and $64.7 million of tax benefit, respectively, from utilization of net operating loss and other tax carryforwards.
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31 were as follows:
| 2023 |  | 2022
Deferred tax assets: |  |  |
Capitalized research and development | $ | 2,997.5 |  |  | $ | 1,615.4 |
Purchases of intangible assets | 1,981.9 |  |  | 2,071.3 |
Sales rebates and discounts | 1,632.5 |  |  | 1,312.9 |
Correlative tax adjustments | 1,031.3 |  |  | 752.5 |
Tax credit carryforwards | 577.0 |  |  | 477.6 |
Tax loss and other tax carryforwards | 527.2 |  |  | 626.0 |
Compensation and benefits | 521.4 |  |  | 427.9 |
Foreign tax redeterminations | 323.7 |  |  | 267.8 |
Operating lease liabilities | 253.3 |  |  | 147.5 |
Other | 463.4 |  |  | 361.0 |
Total gross deferred tax assets | 10,309.2 |  |  | 8,059.9 |
Valuation allowances | (913.5) |  |  | (775.1) |
Total deferred tax assets | 9,395.7 |  |  | 7,284.8 |
Deferred tax liabilities: |  |  |
Intangibles | (1,338.2) |  |  | (1,387.9) |
Earnings of foreign subsidiaries | (796.6) |  |  | (1,226.0) |
Inventories | (619.5) |  |  | (639.5) |
Property and equipment | (495.2) |  |  | (433.5) |
Prepaid employee benefits | (460.6) |  |  | (546.5) |
Operating lease assets | (237.1) |  |  | (130.7) |
Financial instruments | (75.1) |  |  | (215.0) |
Total deferred tax liabilities | (4,022.3) |  |  | (4,579.1) |
Deferred tax assets - net | $ | 5,373.4 |  |  | $ | 2,705.7 |
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:
| 2023 |  | 2022 |  | 2021
Cash payments of income taxes | $ | 5,558.8 |  |  | $ | 2,672.9 |  |  | $ | 1,598.8 |
Having made this election, our future cash payments relating to the Toll Tax as of December 31, 2023 are as follows:
| Total | 2024 | 2025
2017 Tax Act Toll Tax | $ | 1,427.0 |  | $ | 634.2 |  | $ | 792.8 |
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:
| 2023 |  | 2022 |  | 2021
Income tax at the U.S. federal statutory tax rate | $ | 1,376.5 |  |  | $ | 1,429.3 |  |  | $ | 1,292.6 |
Add (deduct): |  |  |  |  |
Non-deductible acquired IPR&D(1) | 677.2 |  |  | 68.3 |  |  | 10.5 |
General business credits | (258.0) |  |  | (155.0) |  |  | (100.5) |
Foreign-derived intangible income deduction | (236.7) |  |  | (287.5) |  |  | (86.7) |
International operations, including Puerto Rico(2) | (187.1) |  |  | (299.5) |  |  | (447.5) |
Stock-based compensation(3) | (79.9) |  |  | (48.9) |  |  | (55.7) |
Valuation allowance release | (4.2) |  |  | (116.4) |  |  | (19.0) |
Other | 26.4 |  |  | (28.7) |  |  | (19.9) |
Income taxes | $ | 1,314.2 |  |  | $ | 561.6 |  |  | $ | 573.8 |
(1) Non-deductible acquired IPR&D was primarily related to the acquisitions of DICE, Versanis, and Emergence in 2023. See Note 3 for additional information related to acquisitions. (2) Includes the impact of GILTI tax, Puerto Rico Excise Tax (for 2022 and 2021), and other U.S. taxation of foreign income. (3) Includes excess tax benefits from stock-based compensation and non-deductible stock-based compensation.
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
| 2023 |  | 2022 |  | 2021
Beginning balance at January 1 | $ | 2,987.0 |  |  | $ | 2,798.3 |  |  | $ | 2,551.9 |
Additions based on tax positions related to the current year | 364.3 |  |  | 274.2 |  |  | 310.3 |
Additions for tax positions of prior years | 78.2 |  |  | 34.6 |  |  | 98.6 |
Reductions for tax positions of prior years | (39.0) |  |  | (10.9) |  |  | (8.1) |
Settlements | (4.7) |  |  | (44.8) |  |  | (38.5) |
Lapses of statutes of limitation | (21.5) |  |  | (11.8) |  |  | (49.7) |
Changes related to the impact of foreign currency translation | 30.7 |  |  | (52.6) |  |  | (66.2) |
Ending balance at December 31 | $ | 3,395.0 |  |  | $ | 2,987.0 |  |  | $ | 2,798.3 |

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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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + 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 -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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