Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of earnings before income taxes

years ended December 31 (in millions)	2015			2014			2013
Domestic	$	(1,038	)	$	(3,245	)	$	(581	)
Foreign		7,683			5,614			5,913
Total earnings before income tax expense	$	6,645		$	2,369		$	5,332

Schedule of components of income taxes

years ended December 31 (in millions)	2015		2014			2013
Current
Domestic	$	1,036	$	634		$	226
Foreign		313		341			354
Total current taxes	$	1,349	$	975		$	580
Deferred
Domestic	$	141	$	(301	)	$	678
Foreign		11		(79	)		(54	)
Total deferred taxes	$	152	$	(380	)	$	624
Total income tax expense	$	1,501	$	595		$	1,204

Schedule of effective tax rate reconciliation

years ended December 31	2015			2014			2013
Statutory tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		0.1			—			0.3
Effect of foreign operations		(9.4	)		(11.3	)		(11.5	)
U.S. tax credits		(4.5	)		(8.9	)		(2.7	)
Branded prescription drug fee		0.7			3.7			0.4
Valuation allowances		(1.6	)		3.6			0.1
All other, net		2.3			3.0			1.0
Effective tax rate		22.6	%		25.1	%		22.6	%

Schedule of deferred tax assets and liabilities

as of December 31 (in millions)	2015			2014
Deferred tax assets
Compensation and employee benefits	$	584		$	627
Accruals and reserves		368			376
Chargebacks and rebates		472			297
Deferred revenue		372			382
Depreciation		45			53
Net operating losses and other credit carryforwards		282			125
Other		316			292
Total deferred tax assets		2,439			2,152
Valuation allowances		(70	)		(172	)
Total net deferred tax assets		2,369			1,980
Deferred tax liabilities
Excess of book basis over tax basis of intangible assets		(4,459	)		(331	)
Excess of book basis over tax basis in investments		(2,958	)		(326	)
Total deferred tax liabilities		(7,417	)		(657	)
Net deferred tax (liabilities) assets	$	(5,048	)	$	1,323

Schedule of unrecognized tax benefits

years ended December 31 (in millions)	2015			2014			2013
Balance as of January 1	$	421		$	247		$	1,140
Increase due to current year tax positions		187			115			195
Increase due to prior year tax positions		369			67			—
Decrease due to prior year tax positions		(15	)		(6	)		—
Lapse of statutes of limitations		(8	)		(2	)		—
Separation-related adjustments		—			—			(1,088	)
Balance as of December 31	$	954		$	421		$	247