Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Provision for Income Taxes, Net

The components of the provision (benefit) for income taxes, net are as follows (in millions):

	Year Ended December 31,
	2022		2023		2024
U.S. Federal:
Current	$	2,175	$	8,652	$	9,039
Deferred	(6,686)		(5,505)		(4,101)
Total	(4,511)		3,147		4,938
U.S. State:
Current	1,074		2,158		2,109
Deferred	(1,302)		(498)		(453)
Total	(228)		1,660		1,656
International:
Current	1,682		2,186		2,765
Deferred	(160)		127		(94)
Total	1,522		2,313		2,671
Provision (benefit) for income taxes, net	$	(3,217)	$	7,120	$	9,265

Components of Income Before Income Taxes, Domestic and Foreign

U.S. and international components of income (loss) before income taxes are as follows (in millions):

	Year Ended December 31,
	2022		2023		2024
U.S.	$	(8,225)	$	32,328	$	61,947
International	2,289		5,229		6,667
Income (loss) before income taxes	$	(5,936)	$	37,557	$	68,614

Effective Income Tax Rate Reconciliation

The items accounting for differences between income taxes computed at the federal statutory rate and the provision (benefit) recorded for income taxes are as follows (in millions):

	Year Ended December 31,
	2022		2023		2024
Income taxes computed at the federal statutory rate	$	(1,246)	$	7,887	$	14,409
Effect of:
Tax impact of foreign earnings and losses	(370)		594		199
State taxes, net of federal benefits	(173)		1,307		1,306
Tax credits	(1,006)		(2,362)		(2,805)
Stock-based compensation (1)	612		1,047		(1,688)
Foreign income deduction (2)	(1,258)		(1,429)		(2,379)
Other, net	224		76		223
Total	$	(3,217)	$	7,120	$	9,265

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(1)Includes non-deductible stock-based compensation and excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $33 million and $519 million of tax shortfalls from stock-based compensation for 2022 and 2023, and $2.8 billion of excess tax benefits from stock-based compensation for 2024.

(2)U.S. companies are eligible for a deduction that lowers the effective tax rate on certain foreign income. This regime is referred to as the Foreign-Derived Intangible Income deduction and is dependent on the amount of our U.S. taxable income.

Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities are as follows (in millions):

	December 31,
	2023		2024
Deferred tax assets (1):
Loss carryforwards U.S. - Federal/States	$	610	$	692
Loss carryforwards - Foreign	2,796		2,687
Accrued liabilities, reserves, and other expenses	3,751		4,254
Stock-based compensation	5,279		4,089
Depreciation and amortization	1,114		1,133
Operating lease liabilities	19,922		20,921
Capitalized research and development	14,800		22,701
Other items	745		1,688
Tax credits	1,582		1,773
Total gross deferred tax assets	50,599		59,938
Less valuation allowances (2)	(4,811)		(4,893)
Deferred tax assets, net of valuation allowances	45,788		55,045
Deferred tax liabilities:
Depreciation and amortization	(12,454)		(16,240)
Operating lease assets	(18,648)		(19,517)
Other items	(1,489)		(3,323)
Net deferred tax assets (liabilities), net of valuation allowances	$	13,197	$	15,965

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(1)Deferred tax assets are presented after tax effects and net of tax contingencies.

(2)Relates primarily to deferred tax assets that would only be realizable upon the generation of net income in certain foreign taxing jurisdictions or future capital gains, as well as tax credits.

Reconciliation of Income Tax Contingencies

The reconciliation of our income tax contingencies is as follows (in millions):

	December 31,
	2022		2023		2024
Gross tax contingencies – January 1	$	3,242	$	4,002	$	5,228
Gross increases to tax positions in prior periods	274		440		154
Gross decreases to tax positions in prior periods	(172)		(38)		(129)
Gross increases to current period tax positions	706		1,009		1,392
Settlements with tax authorities	(20)		(106)		(9)
Lapse of statute of limitations	(28)		(79)		(151)
Gross tax contingencies – December 31 (1)	$	4,002	$	5,228	$	6,485

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(1)As of December 31, 2024, we had approximately $6.5 billion of income tax contingencies of which $4.4 billion, if fully recognized, would decrease our effective tax rate.