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Income taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
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,
| 2022 |  | 2021 |  | 2020
Domestic | $ | 3,026 |  |  | $ | 1,850 |  |  | $ | 4,087 |
Foreign | 4,320 |  |  | 4,851 |  |  | 4,046 |
Total income before income taxes | $ | 7,346 |  |  | $ | 6,701 |  |  | $ | 8,133 |
Provision for income taxes | The provision for income taxes included the following (in millions):
| Years ended December 31,
| 2022 |  | 2021 |  | 2020
Current provision: |  |  |  |  |
Federal | $ | 1,721 |  |  | $ | 865 |  |  | $ | 921 |
State | 44 |  |  | 18 |  |  | 34 |
Foreign | 304 |  |  | 359 |  |  | 277 |
Total current provision | 2,069 |  |  | 1,242 |  |  | 1,232 |
Deferred benefit: |  |  |  |  |
Federal | (1,185) |  |  | (308) |  |  | (321) |
State | (27) |  |  | (9) |  |  | 9 |
Foreign | (63) |  |  | (117) |  |  | (51) |
Total deferred benefit | (1,275) |  |  | (434) |  |  | (363) |
Total provision for income taxes | $ | 794 |  |  | $ | 808 |  |  | $ | 869 |
Significant components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities were as follows (in millions):
| December 31,
| 2022 |  | 2021
Deferred income tax assets: |  |  |
NOL and credit carryforwards | $ | 1,344 |  |  | $ | 1,065 |
Accrued expenses | 584 |  |  | 600 |
Capitalized research and development expenses | 515 |  |  | — |
Investments | 270 |  |  | — |
Expenses capitalized for tax | 211 |  |  | 244 |
Earnings of foreign subsidiaries | 192 |  |  | — |
Stock-based compensation | 104 |  |  | 96 |
Other | 317 |  |  | 326 |
Total deferred income tax assets | 3,537 |  |  | 2,331 |
Valuation allowance | (718) |  |  | (663) |
Net deferred income tax assets | 2,819 |  |  | 1,668 |
Deferred income tax liabilities: |  |  |
Acquired intangible assets | (1,238) |  |  | (824) |
Debt | (272) |  |  | (275) |
Fixed assets | (112) |  |  | (129) |
Other | (254) |  |  | (221) |
Total deferred income tax liabilities | (1,876) |  |  | (1,449) |
Total deferred income taxes, net | $ | 943 |  |  | $ | 219 |
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,
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 3,546 |  |  | $ | 3,352 |  |  | $ | 3,287 |
Additions based on tax positions related to the current year | 151 |  |  | 171 |  |  | 165 |
Additions based on tax positions related to prior years | 90 |  |  | 35 |  |  | 3 |
Reductions for tax positions of prior years | (14) |  |  | (4) |  |  | (35) |
Reductions for expiration of statute of limitations | (3) |  |  | — |  |  | — |
Settlements | — |  |  | (8) |  |  | (68) |
Ending balance | $ | 3,770 |  |  | $ | 3,546 |  |  | $ | 3,352 |
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,
| 2022 |  | 2021 |  | 2020
Federal statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign earnings | (5.6) | % |  | (7.8) | % |  | (4.7) | %
Foreign-derived intangible income | (1.3) | % |  | (1.0) | % |  | (0.7) | %
Credits, Puerto Rico excise tax | (2.8) | % |  | (3.4) | % |  | (2.9) | %
Interest on uncertain tax positions | 1.9 | % |  | 1.1 | % |  | 1.1 | %
Credits, primarily federal R&D | (2.0) | % |  | (2.1) | % |  | (1.4) | %
Acquisition IPR&D | — | % |  | 4.9 | % |  | — | %
Audit settlements | — | % |  | — | % |  | (1.0) | %
Other, net | (0.4) | % |  | (0.6) | % |  | (0.7) | %
Effective tax rate | 10.8 | % |  | 12.1 | % |  | 10.7 | %

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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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + 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 https://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 https://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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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