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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision/(Benefit) for Income Taxes

The provision/(benefit) for income taxes consisted of:

			Year Ended December 31,
Dollars in millions			2024						2023						2022
Current:
U.S.			$	1,279					$	2,745					$	3,017
Non-U.S.			1,364						943						1,089
Total current			2,643						3,688						4,106
Deferred:
U.S.			(2,185)						(2,339)						(2,889)
Non-U.S.			96						(949)						151
Total deferred			(2,089)						(3,288)						(2,738)
Income tax provision			$	554					$	400					$	1,368

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the effective tax rate to the U.S. statutory Federal income tax rate was as follows:

			% of Earnings Before Income Taxes
Dollars in millions			2024												2023												2022
(Loss)/Earnings before income taxes:
U.S.			$	(14,893)											$	2,624											$	(140)
Non-U.S.			6,514												5,816												7,853
Total			(8,379)												8,440												7,713
U.S. statutory rate			(1,759)						21.0		%				1,772						21.0		%				1,620						21.0		%
Nondeductible R&D charges			2,538						(30.3)		%				—						—		%				—						—		%
GILTI, net of foreign derived intangible income deduction			501						(6.0)		%				223						2.6		%				634						8.2		%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland			(302)						3.6		%				(850)						(10.1)		%				(416)						(5.4)		%
Non-U.S. tax ruling			—						—		%				(656)						(7.8)		%				—						—		%
Internal transfers of intangible and other assets			—						—		%				—						—		%				(93)						(1.2)		%
U.S. Federal valuation allowance			46						(0.5)		%				(171)						(2.0)		%				58						0.8		%
U.S. Federal, state and foreign contingent tax matters			(459)						5.5		%				143						1.7		%				(297)						(3.9)		%
U.S. Federal research-based credits			(291)						3.5		%				(243)						(2.9)		%				(142)						(1.8)		%
Charitable contributions of inventory			(36)						0.4		%				(75)						(0.9)		%				(94)						(1.2)		%
Puerto Rico excise tax credit			—						—		%				—						—		%				(144)						(1.9)		%
State and local taxes (net of valuation allowance)			(25)						0.3		%				92						1.1		%				103						1.3		%
Foreign and other			341						(4.1)		%				165						2.0		%				139						1.8		%
Income tax provision			$	554					(6.6)		%				$	400					4.7		%				$	1,368					17.7		%

Schedule of Deferred Income Tax Assets/(Liabilities)

The components of deferred income tax assets/(liabilities) were as follows:

			December 31,
Dollars in millions			2024						2023
Deferred tax assets
Foreign net operating loss and other carryforwards			$	1,521					$	2,017
State net operating loss and credit carryforwards			529						349
U.S. Federal capital loss, net operating loss and tax credit			695						249
Milestone payments and license fees			999						918
Capitalized research expenditures			3,886						2,682
Other			1,738						1,883
Total deferred tax assets			9,368						8,098
Valuation allowance			(929)						(764)
Deferred tax assets net of valuation allowance			$	8,439					$	7,334
Deferred tax liabilities
Acquired intangible assets			$	(3,781)					$	(4,052)
Goodwill and other			(791)						(852)
Total deferred tax liabilities			$	(4,572)					$	(4,904)
Deferred tax assets/(liabilities), net			$	3,867					$	2,430
Recognized as:
Deferred income taxes assets – non-current			$	4,236					$	2,768
Deferred income taxes liabilities – non-current			(369)						(338)
Total			$	3,867					$	2,430

Changes in the Valuation Allowance

Changes in the valuation allowance were as follows:

			Year Ended December 31,
Dollars in millions			2024						2023						2022
Beginning balance			$	764					$	873					$	1,056
Provision			242						(39)						213
Utilization			(182)						(54)						(68)
Foreign currency translation			(9)						(19)						(59)
Acquisitions/(dispositions)/(liquidations), net			113						—						(271)
Non-U.S. tax rate change			1						3						2
Ending balance			$	929					$	764					$	873

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (excluding interest and penalties):

			Year Ended December 31,
Dollars in millions			2024						2023						2022
Beginning balance			$	1,914					$	1,766					$	2,042
Gross additions to tax positions related to current year			68						38						53
Gross additions to tax positions related to prior years			64						145						137
Gross additions to tax positions assumed in acquisitions			113						—						15
Gross reductions to tax positions related to prior years			(670)						(5)						(381)
Settlements			(50)						(30)						(8)
Reductions to tax positions related to lapse of statute			(3)						(4)						(83)
Cumulative translation adjustment			(8)						4						(9)
Ending balance			$	1,428					$	1,914					$	1,766

Summary of Income Tax Examinations

Additional information regarding unrecognized tax benefits is as follows:

			Year Ended December 31,
Dollars in millions			2024						2023						2022
Unrecognized tax benefits that if recognized would impact the effective tax rate			$	1,394					$	1,872					$	1,736
Accrued interest			507						434						332
Accrued penalties			19						23						25
Interest and penalties expense/(benefit)			89						110						(87)

The following is a summary of major tax jurisdictions for which tax authorities may assert additional taxes based upon tax years currently under audit and subsequent years that are subject to audit:

U.S.			2008 to 2012, 2016 to 2024
Canada			2012 to 2024
France			2020 to 2024
Germany			2015 to 2024
Italy			2018 to 2024
Japan			2023 to 2024
UK			2012 to 2024

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