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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) Before Income Taxes | Income before income taxes consists of the following:
|  | Year Ended December 31,
(in millions) |  | 2021 |  | 2020 |  | 2019
Domestic |  | $ | 8,587 |  |  | $ | 2,505 |  |  | $ | 4,112 |
Foreign |  | (309) |  |  | (836) |  |  | 1,048 |
Income before income taxes |  | $ | 8,278 |  |  | $ | 1,669 |  |  | $ | 5,160 |
Schedule of Income Tax Expense (Benefit) | The Income tax (expense) benefit consists of the following:
|  | Year Ended December 31,
(in millions) |  | 2021 |  | 2020 |  | 2019
Federal: |  |  |  |  |  |
Current |  | $ | (1,776) |  |  | $ | (1,450) |  |  | $ | (1,646) |
Deferred |  | 250 |  |  | 164 |  |  | 843 |
|  | (1,526) |  |  | (1,286) |  |  | (803) |
State: |  |  |  |  |  |
Current |  | (228) |  |  | (198) |  |  | (135) |
Deferred |  | (185) |  |  | 97 |  |  | 42 |
|  | (413) |  |  | (101) |  |  | (93) |
Foreign: |  |  |  |  |  |
Current |  | (185) |  |  | (155) |  |  | (124) |
Deferred |  | 47 |  |  | (38) |  |  | 1,224 |
|  | (138) |  |  | (193) |  |  | 1,100 |
Income tax (expense) benefit |  | $ | (2,077) |  |  | $ | (1,580) |  |  | $ | 204 |
Schedule of Difference Between Provision for Income Taxes and Federal Statutory Income Tax Rate to Income Before Provision for Income Taxes | The reconciliation between the federal statutory tax rate applied to income before income taxes and our effective tax rate is summarized as follows:
|  | Year Ended December 31,
|  | 2021 |  | 2020 |  | 2019
Federal statutory rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit |  | 2.5 | % |  | 4.2 | % |  | 0.4 | %
Foreign earnings at different rates |  | (0.3) | % |  | (10.0) | % |  | 2.5 | %
Research and other credits |  | (1.6) | % |  | (6.9) | % |  | (1.9) | %
US tax on foreign earnings |  | 1.1 | % |  | 7.2 | % |  | 4.3 | %
Foreign-derived intangible income deduction |  | (1.6) | % |  | (8.0) | % |  | (3.2) | %
Deferred tax - intra-entity transfer of intangible assets |  | (0.7) | % |  | 0.6 | % |  | (24.0) | %
Settlement of tax examinations |  | (0.7) | % |  | (10.2) | % |  | (2.4) | %
Acquired IPR&D and related charges |  | — | % |  | 56.2 | % |  | — | %
Changes in valuation allowance |  | 1.5 | % |  | 6.7 | % |  | — | %
Non-taxable unrealized (gain) loss on investment |  | 1.8 | % |  | 23.0 | % |  | (5.0) | %
Other |  | 2.1 | % |  | 10.9 | % |  | 4.3 | %
Effective tax rate |  | 25.1 | % |  | 94.7 | % |  | (4.0) | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows:
|  | December 31,
(in millions) |  | 2021 |  | 2020
Deferred tax assets: |  |  |  |
Net operating loss carryforwards |  | $ | 413 |  |  | $ | 587 |
Stock-based compensation |  | 117 |  |  | 113 |
Reserves and accruals not currently deductible |  | 700 |  |  | 444 |
Excess of tax basis over book basis of intangible assets |  | 1,157 |  |  | 1,177 |
Upfront and milestone payments |  | 1,310 |  |  | 1,144 |
Research and other credit carryforwards |  | 249 |  |  | 219 |
Equity investments |  | 117 |  |  | 116 |
Liability related to future royalties |  | 274 |  |  | 247 |
Other, net |  | 292 |  |  | 311 |
Total deferred tax assets before valuation allowance |  | 4,629 |  |  | 4,358 |
Valuation allowance |  | (520) |  |  | (398) |
Total deferred tax assets |  | 4,109 |  |  | 3,960 |
Deferred tax liabilities: |  |  |  |
Property, plant and equipment |  | (227) |  |  | (202) |
Excess of book basis over tax basis of intangible assets |  | (6,719) |  |  | (6,168) |
Other |  | (180) |  |  | (202) |
Total deferred tax liabilities |  | (7,126) |  |  | (6,572) |
Net deferred tax assets (liabilities) |  | $ | (3,017) |  |  | $ | (2,612) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a rollforward of our total gross unrecognized tax benefits:
|  | Year Ended December 31,
(in millions) |  | 2021 |  | 2020 |  | 2019
Balance, beginning of period |  | $ | 1,614 |  |  | $ | 2,031 |  |  | $ | 1,595 |
Tax positions related to current year: |  |  |  |  |  |
Additions |  | 147 |  |  | 121 |  |  | 138 |
Reductions |  | — |  |  | — |  |  | — |
Tax positions related to prior years: |  |  |  |  |  |
Additions |  | 161 |  |  | 398 |  |  | 405 |
Reductions |  | (179) |  |  | (481) |  |  | — |
Settlements |  | (28) |  |  | (454) |  |  | (104) |
Lapse of statute of limitations |  | (2) |  |  | (1) |  |  | (3) |
Balance, end of period |  | $ | 1,713 |  |  | $ | 1,614 |  |  | $ | 2,031 |

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