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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Our Income (loss) before income taxes consisted of the following:
| Year Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Domestic | $ | (261) |  |  | $ | (394) |  |  | $ | (1,119) |
Foreign | 2,542 |  |  | 2,379 |  |  | 2,260 |
| $ | 2,282 |  |  | $ | 1,985 |  |  | $ | 1,141 |
Schedule of Components of Income Tax Expense (Benefit) | The related expense (benefit) for income taxes consisted of the following:
| Year Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Current |  |  |  |  |
Federal | $ | 310 |  |  | $ | 189 |  |  | $ | 51 |
State | 31 |  |  | 15 |  |  | 19 |
Foreign | 184 |  |  | 116 |  |  | 381 |
| 526 |  |  | 320 |  |  | 451 |
Deferred |  |  |  |  |
Federal | (131) |  |  | (82) |  |  | (92) |
State | (52) |  |  | (22) |  |  | (32) |
Foreign | 92 |  |  | 176 |  |  | 117 |
| (90) |  |  | 73 |  |  | (7) |
| $ | 436 |  |  | $ | 393 |  |  | $ | 443 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows:
| As of December 31,
(in millions) | 2024 |  | 2023
Deferred Tax Assets: |  |  |
Inventory costs and related reserves | $ | 15 |  |  | $ | 30 |
Tax benefit of net operating losses and credits | 774 |  |  | 744 |
Reserves and accruals | 320 |  |  | 305 |
Restructuring-related charges | 12 |  |  | 14 |
Litigation and product liability reserves | 79 |  |  | 88 |
Investment write-down | 73 |  |  | 58 |
Compensation related | 186 |  |  | 154 |
Federal benefit of uncertain tax positions | 25 |  |  | 11 |
Intangible assets | 3,059 |  |  | 3,394 |
Capitalized R&D | 329 |  |  | 232 |
Operating lease liabilities | 117 |  |  | — |
| 4,990 |  |  | 5,029 |
Less: valuation allowance | (1,268) |  |  | (1,220) |
| 3,722 |  |  | 3,809 |
Deferred Tax Liabilities: |  |  |
Property, plant and equipment | 29 |  |  | 24 |
Unrealized gains and losses on derivative financial instruments | 81 |  |  | 66 |
Operating right-of-use asset | 111 |  |  | — |
Other | 1 |  |  | 12 |
| 222 |  |  | 102 |
Net Deferred Tax Assets | 3,500 |  |  | 3,707 |
Prepaid on intercompany profit | 307 |  |  | 315 |
Net Deferred Tax Assets and Prepaid on Intercompany Profit | $ | 3,807 |  |  | $ | 4,022 |
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 | 2024 |  | 2023
Prepaid on intercompany profit | Prepaid income taxes | $ | 307 |  |  | $ | 315 |
Non-current deferred tax asset | Deferred tax assets | 3,655 |  |  | 3,841 |
Deferred Tax Assets and Prepaid on Intercompany Profit |  | 3,962 |  |  | 4,157 |
Non-current deferred tax liability | Deferred tax liabilities | 155 |  |  | 134 |
Deferred Tax Liabilities |  | 155 |  |  | 134 |
Net Deferred Tax Assets and Prepaid on Intercompany Profit | $ | 3,807 |  |  | $ | 4,022 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Year Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Beginning Balance | $ | 467 |  |  | $ | 492 |  |  | $ | 255 |
Additions based on positions related to the current year | 58 |  |  | 65 |  |  | 88 |
Additions based on positions related to prior years | 20 |  |  | 67 |  |  | 177 |
Reductions for tax positions of prior years | (20) |  |  | (114) |  |  | (20) |
Settlements with taxing authorities | — |  |  | (14) |  |  | (1) |
Statute of limitation expirations | (18) |  |  | (29) |  |  | (8) |
Ending Balance | $ | 506 |  |  | $ | 467 |  |  | $ | 492 |
Tax rate | The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes is as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
U.S. federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of federal benefit | 0.1 | % |  | 0.7 | % |  | 0.7 | %
Domestic taxes on foreign earnings | 9.2 | % |  | 6.9 | % |  | 15.3 | %
Effect of foreign taxes | (12.2) | % |  | (15.3) | % |  | (3.8) | %
Acquisition-related | 1.5 | % |  | 2.2 | % |  | 4.4 | %
Research credit | (3.1) | % |  | (2.9) | % |  | (4.5) | %
Valuation allowance | 0.4 | % |  | 7.5 | % |  | (1.3) | %
Compensation-related | (0.1) | % |  | 0.5 | % |  | 0.6 | %
Non-deductible expenses | 0.6 | % |  | 0.4 | % |  | 0.4 | %
Uncertain tax positions | 1.3 | % |  | (0.5) | % |  | 7.7 | %
Return to provision | 0.5 | % |  | (0.1) | % |  | (2.1) | %
Change in tax rates | 0.1 | % |  | (0.6) | % |  | (0.2) | %
Other, net | (0.2) | % |  | 0.0 | % |  | 0.7 | %
Reported tax rate | 19.1 | % |  | 19.8 | % |  | 38.9 | %

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