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Income Taxes (Tables)

12 Months Ended

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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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 of the change in unrecognized tax benefits.

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