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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income before income tax provision and the income tax expense | Income before income tax provision and the income tax expense consist of the following:
| For the Years Ended December 31,
(In millions) | 2017 |  | 2016 |  | 2015
Income before income taxes (benefit): |  |  |  |  |
Domestic | $ | 3,540.4 |  |  | $ | 3,655.4 |  |  | $ | 3,386.7 |
Foreign | 1,588.4 |  |  | 1,277.6 |  |  | 1,380.6 |
Total | $ | 5,128.8 |  |  | $ | 4,933.0 |  |  | $ | 4,767.3 |
Income tax expense (benefit): |  |  |  |  |
Current: |  |  |  |  |
Federal | $ | 2,201.4 |  |  | $ | 1,304.3 |  |  | $ | 1,214.1 |
State | 57.0 |  |  | 55.1 |  |  | 38.6 |
Foreign | 108.6 |  |  | 52.9 |  |  | 54.5 |
Total | 2,367.0 |  |  | 1,412.3 |  |  | 1,307.2 |
Deferred: |  |  |  |  |
Federal | $ | 241.0 |  |  | $ | (125.6 | ) |  | $ | (129.6 | )
State | 9.9 |  |  | (3.8 | ) |  | (1.9 | )
Foreign | (159.2 | ) |  | (45.6 | ) |  | (14.1 | )
Total | 91.7 |  |  | (175.0 | ) |  | (145.6 | )
Total income tax expense | $ | 2,458.7 |  |  | $ | 1,237.3 |  |  | $ | 1,161.6 |
Components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are summarized as follows:
| As of December 31,
(In millions) | 2017 |  | 2016
Deferred tax assets: |  |  |
Tax credits | $ | 60.0 |  |  | $ | 201.1 |
Inventory, other reserves and accruals | 147.8 |  |  | 250.6 |
Intangibles, net | 378.8 |  |  | 459.8 |
Net operating loss | 209.8 |  |  | 65.9 |
Share-based compensation | 26.9 |  |  | 61.5 |
Other | 25.1 |  |  | 49.0 |
Valuation allowance | (16.6 | ) |  | (16.1 | )
Total deferred tax assets | $ | 831.8 |  |  | $ | 1,071.8 |
Deferred tax liabilities: |  |  |
Purchased intangible assets | $ | (250.7 | ) |  | $ | (376.6 | )
Depreciation, amortization and other | (107.9 | ) |  | (113.5 | )
Total deferred tax liabilities | $ | (358.6 | ) |  | $ | (490.1 | )
Reconciliation between the U.S. federal statutory tax rate and effective tax rate | A reconciliation between the U.S. federal statutory tax rate and our effective tax rate is summarized as follows:
| For the Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Statutory rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State taxes | 0.8 |  |  | 0.9 |  |  | 0.5 |
Taxes on foreign earnings | (11.1 | ) |  | (9.6 | ) |  | (10.0 | )
Credits and net operating loss utilization | (0.8 | ) |  | (1.4 | ) |  | (1.3 | )
Purchased intangible assets | 1.4 |  |  | 1.2 |  |  | 1.0 |
Manufacturing deduction | (1.9 | ) |  | (1.9 | ) |  | (1.8 | )
2017 Tax Act | 22.9 |  |  | — |  |  | — |
Impairment of ZINBRYTA related tax assets | 0.9 |  |  | — |  |  | — |
Other permanent items | 0.7 |  |  | 0.5 |  |  | 0.7 |
Other | — |  |  | 0.4 |  |  | 0.3 |
Effective tax rate | 47.9 | % |  | 25.1 | % |  | 24.4 | %
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of our unrecognized tax benefits is summarized as follows:
(In millions) | 2017 |  | 2016 |  | 2015
Balance at January 1, | $ | 32.4 |  |  | $ | 67.9 |  |  | $ | 131.5 |
Additions based on tax positions related to the current period | 5.7 |  |  | 7.2 |  |  | 10.5 |
Additions for tax positions of prior periods | 7.3 |  |  | 36.3 |  |  | 19.5 |
Reductions for tax positions of prior periods | (21.8 | ) |  | (13.3 | ) |  | (49.9 | )
Statute expirations | (1.4 | ) |  | (1.4 | ) |  | (1.2 | )
Settlement refund (payment) | 44.6 |  |  | (64.3 | ) |  | (42.5 | )
Balance at December 31, | $ | 66.8 |  |  | $ | 32.4 |  |  | $ | 67.9 |

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