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Income taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

Income before income taxes included the following (in millions):

	Years ended December 31,
	2019				2018				2017
Domestic	$	4,371			$	4,856			$	4,436
Foreign	4,767				4,689				5,161
Total income before income taxes	$	9,138			$	9,545			$	9,597

Provision for income taxes

The provision for income taxes included the following (in millions):

	Years ended December 31,
	2019				2018				2017
Current provision:
Federal	$	1,284			$	1,270			$	8,615
State	39				17				5
Foreign	277				227				275
Total current provision	1,600				1,514				8,895
Deferred (benefit) provision:
Federal	(276		)		(317		)		(1,120		)
State	(22		)		(7		)		—
Foreign	(6		)		(39		)		(157		)
Total deferred (benefit) provision	(304		)		(363		)		(1,277		)
Total provision for income taxes	$	1,296			$	1,151			$	7,618

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities were as follows (in millions):

	December 31,
	2019				2018
Deferred income tax assets:
NOL and credit carryforwards	$	800			$	810
Accrued expenses	457				428
Expenses capitalized for tax	170				185
Stock-based compensation	91				95
Other	269				174
Total deferred income tax assets	1,787				1,692
Valuation allowance	(517		)		(509		)
Net deferred income tax assets	1,270				1,183
Deferred income tax liabilities:
Acquired intangible assets	(1,288		)		(1,509		)
Debt	(210		)		(184		)
Other	(286		)		(267		)
Total deferred income tax liabilities	(1,784		)		(1,960		)
Total deferred income taxes, net	$	(514	)		$	(777	)

Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits)

The reconciliations of the total gross amounts of UTBs were as follows (in millions):

	Years ended December 31,
	2019				2018				2017
Beginning balance	$	3,061			$	2,953			$	2,543
Additions based on tax positions related to the current year	215				173				447
Additions based on tax positions related to prior years	22				13				1
Reductions for tax positions of prior years	(11		)		(17		)		(5		)
Reductions for expiration of statute of limitations	—				—				(5		)
Settlements	—				(61		)		(28		)
Ending balance	$	3,287			$	3,061			$	2,953

Reconciliation between the federal statutory tax rate and effective tax rate

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows:

	Years ended December 31,
	2019			2018			2017
Federal statutory tax rate	21.0	%		21.0	%		35.0	%
2017 Tax Act, net repatriation tax	—	%		—	%		70.7	%
Foreign earnings	(4.5	)%		(4.3	)%		(15.8	)%
2017 Tax Act, net deferred tax remeasurement	—	%		—	%		(6.9	)%
Credits, Puerto Rico Excise Tax	(2.6	)%		(2.5	)%		(2.2	)%
2017 Tax Act, net impact on intercompany sales	—	%		(1.8	)%		—	%
Interest on uncertain tax positions	1.6	%		1.2	%		0.6	%
Credits, primarily federal R&D	(1.0	)%		(0.8	)%		(0.6	)%
Share-based payments	(0.3	)%		(0.2	)%		(0.7	)%
Other, net	—	%		(0.5	)%		(0.7	)%
Effective tax rate	14.2	%		12.1	%		79.4	%

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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.

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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.

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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.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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.

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