Taxes on Earnings (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Earnings Before Taxes

Earnings before taxes, and the related provisions for taxes on earnings, were as follows:

(in millions)	2023		2022		2021
Earnings Before Taxes:
Domestic	$	1,192	$	3,732	$	3,264
Foreign	5,472		4,574		4,947
Total	$	6,664	$	8,306	$	8,211

Schedule of Provisions for Taxes on Earnings

(in millions)	2023		2022		2021
Taxes on Earnings:
Current:
Domestic	$	528	$	1,309	$	859
Foreign	874		723		790
Total current	1,402		2,032		1,649
Deferred:
Domestic	(382)		(610)		(355)
Foreign	(79)		(49)		(154)
Total deferred	(461)		(659)		(509)
Total	$	941	$	1,373	$	1,140

Schedule of Reconciliation of Income Tax Rate and U.S. Statutory Tax Rate to Income Tax Expense (Benefit)

Differences between the effective income tax rate and the U.S. statutory tax rate were as follows:

	2023		2022		2021
Statutory tax rate on earnings	21.0	%	21.0	%	21.0	%
Impact of foreign operations	(3.6)		(2.5)		(3.9)
Foreign-derived intangible income benefit	(2.2)		(2.0)		(1.1)
Domestic impairment loss	—		—		(0.1)
Excess tax benefits related to stock compensation	(0.3)		(0.5)		(1.7)
Research tax credit	(1.1)		(0.9)		(0.6)
Resolution of certain tax positions pertaining to prior years	1.2		0.2		(0.7)
Intercompany restructurings and integration	(1.4)		—		0.1
State taxes, net of federal benefit	0.5		0.7		0.4
All other, net	—		0.5		0.5
Effective tax rate on earnings	14.1	%	16.5	%	13.9	%

Schedule of Components of Net Deferred Tax Assets and Liabilities

The tax effect of the differences that give rise to deferred tax assets and liabilities were as follows:

(in millions)	2023		2022
Deferred tax assets:
Compensation and employee benefits	$	89	$	230
Trade receivable reserves	221		227
Research and development costs	568		319
Inventory reserves	198		187
Lease liabilities	272		263
Deferred intercompany profit	283		260
NOLs, reserves not currently deductible, credit carryforwards and other	9,922		2,402
Total deferred tax assets before valuation allowance	11,553		3,888
Valuation allowance	(8,690)		(1,169)
Total deferred tax assets	2,863		2,719
Deferred tax liabilities:
Depreciation	(414)		(376)
Right of Use lease assets	(258)		(252)
Other, primarily the excess of book basis over tax basis of intangible assets	(1,777)		(2,038)
Total deferred tax liabilities	(2,449)		(2,666)
Total net deferred tax assets (liabilities)	$	414	$	53

Schedule of Reconciliation of Unrecognized Tax Benefits for the Period

The following table summarizes the gross amounts of unrecognized tax benefits without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such unrecognized tax benefits were settled:

(in millions)	2023		2022
January 1	$	2,036	$	1,908
Increase due to current year tax positions	225		154
Increase due to prior year tax positions	1,338		108
Decrease due to prior year tax positions	(89)		(115)
Settlements	(144)		3
Lapse of statute	(43)		(22)
December 31	$	3,323	$	2,036