XML 63 R43.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Tax rate | The reconciliation of income taxes at the federal statutory rate to the actual expense (benefit) for income taxes is as follows:
| Year Ended December 31,
| 2021 |  | 2020 |  | 2019
U.S. federal statutory income tax rate | 21.0 | % |  | (21.0) | % |  | 21.0 | %
State income taxes, net of federal benefit | 2.5 | % |  | 16.6 | % |  | 6.7 | %
Domestic taxes on foreign earnings | 6.8 | % |  | 155.4 | % |  | 21.9 | %
Effect of foreign taxes | (14.3) | % |  | (40.7) | % |  | (47.6) | %
Acquisition-related | (8.1) | % |  | (16.7) | % |  | 12.2 | %
Research credit | (3.0) | % |  | (43.0) | % |  | (4.2) | %
Valuation allowance | 0.8 | % |  | (42.0) | % |  | 1.1 | %
Goodwill impairment charges | — | % |  | 3.7 | % |  | — | %
Compensation-related | (0.6) | % |  | (7.7) | % |  | (0.3) | %
Non-deductible expenses | 0.4 | % |  | 64.4 | % |  | 3.6 | %
Uncertain tax positions | 1.2 | % |  | (96.8) | % |  | 1.4 | %
Intra-entity asset transfers | — | % |  | 10.2 | % |  | (597.0) | %
Return to provision | (5.7) | % |  | (37.3) | % |  | (0.2) | %
Change in tax rates | 1.9 | % |  | 51.8 | % |  | (0.2) | %
Other, net | 0.4 | % |  | 6.0 | % |  | (2.4) | %
| 3.3 | % |  | 2.9 | % |  | (584.0) | %
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Year Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Beginning Balance | $ | 261 |  |  | $ | 455 |  |  | $ | 427 |
Additions based on positions related to the current year | 8 |  |  | 28 |  |  | 30 |
Additions based on positions related to prior years | 41 |  |  | 6 |  |  | 45 |
Reductions for tax positions of prior years | (36) |  |  | (186) |  |  | (34) |
Settlements with taxing authorities | (2) |  |  | (27) |  |  | (4) |
Statute of limitation expirations | (17) |  |  | (15) |  |  | (9) |
Ending Balance | $ | 255 |  |  | $ | 261 |  |  | $ | 455 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Our Income (loss) before income taxes consisted of the following:
| Year Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Domestic | $ | (648) |  |  | $ | (660) |  |  | $ | (1,145) |
Foreign | 1,724 |  |  | 581 |  |  | 1,832 |
| $ | 1,076 |  |  | $ | (79) |  |  | $ | 687 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of our deferred tax assets and liabilities are as follows:
| As of December 31,
(in millions) | 2021 |  | 2020
Deferred Tax Assets: |  |  | (reclassified)(1)
Inventory costs and related reserves | $ | 10 |  |  | $ | 10 |
Tax benefit of net operating losses and credits | 620 |  |  | 557 |
Reserves and accruals | 324 |  |  | 308 |
Restructuring-related charges | 14 |  |  | 23 |
Litigation and product liability reserves | 127 |  |  | 82 |
Investment write-down | 31 |  |  | — |
Compensation related | 130 |  |  | 134 |
Federal benefit of uncertain tax positions | 8 |  |  | 9 |
Intangible assets | 3,546 |  |  | 3,551 |
Capitalized R&D | 67 |  |  | 4 |
Property, plant and equipment | 14 |  |  | — |
Other | 35 |  |  | (10) |
| 4,926 |  |  | 4,668 |
Less: valuation allowance | (1,014) |  |  | (887) |
| 3,912 |  |  | 3,781 |
Deferred Tax Liabilities: |  |  |
Property, plant and equipment | — |  |  | 1 |
Unrealized gains and losses on derivative financial instruments | 79 |  |  | 12 |
Investment write-up | — |  |  | 34 |
| 79 |  |  | 47 |
Net Deferred Tax Assets | 3,833 |  |  | 3,734 |
Prepaid on intercompany profit | 205 |  |  | 194 |
Net Deferred Tax Assets and Prepaid on Intercompany Profit | $ | 4,038 |  |  | $ | 3,928 |
Our deferred tax assets, deferred tax liabilities and prepaid on intercompany profit, are included in the following locations within our accompanying consolidated balance sheets (in millions):
| Location on Consolidated Balance Sheets | As of December 31,
Component | 2021 |  | 2020
Prepaid on intercompany profit | Prepaid income taxes | $ | 205 |  |  | $ | 194 |
Non-current deferred tax asset | Assets held for sale | — |  |  | 2 |
Non-current deferred tax asset | Deferred tax assets | 4,142 |  |  | 4,210 |
Deferred Tax Assets and Prepaid on Intercompany Profit |  | 4,348 |  |  | 4,406 |
Non-current deferred tax liability | Deferred tax liabilities | 310 |  |  | 330 |
Non-current deferred tax liability | Liabilities held for sale in Other current liabilities | — |  |  | 148 |
Deferred Tax Liabilities |  | 310 |  |  | 478 |
Net Deferred Tax Assets and Prepaid on Intercompany Profit | $ | 4,038 |  |  | $ | 3,928 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The related expense (benefit) for income taxes consisted of the following:
| Year Ended December 31,
(in millions) | 2021 |  | 2020 |  | 2019
Current |  |  |  |  |
Federal | $ | 18 |  |  | $ | (29) |  |  | $ | 120 |
State | 33 |  |  | (35) |  |  | 54 |
Foreign | 127 |  |  | 151 |  |  | 101 |
| 178 |  |  | 87 |  |  | 275 |
Deferred |  |  |  |  |
Federal | (256) |  |  | (26) |  |  | (146) |
State | (3) |  |  | (6) |  |  | (18) |
Foreign | 117 |  |  | (53) |  |  | (4,124) |
| (142) |  |  | (85) |  |  | (4,288) |
| $ | 36 |  |  | $ | 2 |  |  | $ | (4,013) |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration