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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | Following is the composition of income tax expense:
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal(1) | $ | 3,312.0 |  |  | $ | 3,017.9 |  |  | $ | 2,153.6 |
Foreign | 1,430.3 |  |  | 613.0 |  |  | 547.7 |
State | 31.2 |  |  | 24.3 |  |  | 45.5 |
Total current tax expense | 4,773.5 |  |  | 3,655.2 |  |  | 2,746.8 |
Deferred: |  |  |  |  |
Federal | (2,178.7) |  |  | (2,369.0) |  |  | (1,992.4) |
Foreign | (473.1) |  |  | 34.2 |  |  | (78.2) |
State | (31.3) |  |  | (6.2) |  |  | (114.6) |
Total deferred tax benefit | (2,683.1) |  |  | (2,341.0) |  |  | (2,185.2) |
Income taxes | $ | 2,090.4 |  |  | $ | 1,314.2 |  |  | $ | 561.6 |
(1) The 2024, 2023, and 2022 current tax expense includes $129.9 million, $69.3 million, and $189.5 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:
| 2024 |  | 2023
Deferred tax assets: |  |  |
Capitalized research and development | $ | 4,598.7 |  |  | $ | 2,997.5 |
Purchases of intangible assets | 1,781.4 |  |  | 1,981.9 |
Sales rebates and discounts | 1,775.7 |  |  | 1,632.5 |
Correlative tax adjustments | 1,604.3 |  |  | 1,031.3 |
Tax loss and other tax carryforwards | 586.9 |  |  | 527.2 |
Tax credit carryforwards | 577.0 |  |  | 577.0 |
Compensation and benefits | 565.2 |  |  | 521.4 |
Foreign tax redeterminations | 334.8 |  |  | 323.7 |
Operating lease liabilities | 240.5 |  |  | 253.3 |
Other | 358.6 |  |  | 463.4 |
Total gross deferred tax assets | 12,423.1 |  |  | 10,309.2 |
Valuation allowances | (963.7) |  |  | (913.5) |
Total deferred tax assets | 11,459.4 |  |  | 9,395.7 |
Deferred tax liabilities: |  |  |
Intangibles | (1,176.4) |  |  | (1,338.2) |
Earnings of foreign subsidiaries | (773.1) |  |  | (796.6) |
Prepaid employee benefits | (611.0) |  |  | (460.6) |
Property and equipment | (557.6) |  |  | (495.2) |
Operating lease assets | (219.1) |  |  | (237.1) |
Financial instruments | (137.3) |  |  | (75.1) |
Inventories | (58.2) |  |  | (619.5) |
Total deferred tax liabilities | (3,532.7) |  |  | (4,022.3) |
Deferred tax assets - net | $ | 7,926.7 |  |  | $ | 5,373.4 |
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:
| 2024 |  | 2023 |  | 2022
Cash payments of income taxes | $ | 6,562.1 |  |  | $ | 5,558.8 |  |  | $ | 2,672.9 |
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:
| 2024 |  | 2023 |  | 2022
Income tax at the U.S. federal statutory tax rate | $ | 2,662.9 |  |  | $ | 1,376.5 |  |  | $ | 1,429.3 |
Add (deduct): |  |  |  |  |
Non-deductible acquired IPR&D(1) | 566.0 |  |  | 677.2 |  |  | 68.3 |
Foreign-derived intangible income deduction | (307.0) |  |  | (236.7) |  |  | (287.5) |
International operations, including Puerto Rico(2) | (302.1) |  |  | (187.1) |  |  | (299.5) |
General business credits | (290.6) |  |  | (258.0) |  |  | (155.0) |
Stock-based compensation(3) | (184.7) |  |  | (79.9) |  |  | (48.9) |
Valuation allowance release | (23.9) |  |  | (4.2) |  |  | (116.4) |
Other | (30.2) |  |  | 26.4 |  |  | (28.7) |
Income taxes | $ | 2,090.4 |  |  | $ | 1,314.2 |  |  | $ | 561.6 |
(1) Non-deductible acquired IPR&D was primarily related to the acquisitions of Morphic in 2024, and 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 other U.S. taxation of foreign income. (3) Includes excess tax benefits from stock-based compensation and non-deductible stock-based compensation.
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
| 2024 |  | 2023 |  | 2022
Beginning balance at January 1 | $ | 3,395.0 |  |  | $ | 2,987.0 |  |  | $ | 2,798.3 |
Additions based on tax positions related to the current year | 694.2 |  |  | 364.3 |  |  | 274.2 |
Additions for tax positions of prior years | 41.7 |  |  | 78.2 |  |  | 34.6 |
Reductions for tax positions of prior years | (63.1) |  |  | (39.0) |  |  | (10.9) |
Settlements | (33.4) |  |  | (4.7) |  |  | (44.8) |
Lapses of statutes of limitation | (8.9) |  |  | (21.5) |  |  | (11.8) |
Changes related to the impact of foreign currency translation | (49.7) |  |  | 30.7 |  |  | (52.6) |
Ending balance at December 31 | $ | 3,975.8 |  |  | $ | 3,395.0 |  |  | $ | 2,987.0 |

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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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