Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2024

Reconciliation Between Effective Tax Rate and U.S. Statutory Rate

A reconciliation between the effective tax rate and the U.S. statutory rate is as follows:


	2024				2023				2022
	Amount		Tax Rate		Amount		Tax Rate		Amount		Tax Rate
U.S. statutory rate applied to income before taxes	$	4,186	21.0	%	$	397	21.0	%	$	3,453	21.0	%
Differential arising from:
Foreign earnings	(1,301)		(6.5)		(941)		(49.8)		(1,821)		(11.1)
Tax settlements and statute lapses	(557)		(2.8)		—		—		(10)		(0.1)
R&D tax credit	(202)		(1.0)		(214)		(11.3)		(117)		(0.7)
Inventory donations	(71)		(0.4)		(65)		(3.5)		(52)		(0.3)
State taxes	(39)		(0.2)		(117)		(6.2)		(110)		(0.7)
Charges for certain research and development asset acquisitions	554		2.8		253		13.4		—		—
Valuation allowances	54		0.3		70		3.7		108		0.7
Restructuring	52		0.3		41		2.2		11		0.1
GILTI and the foreign-derived intangible income deduction	29		0.1		(80)		(4.3)		462		2.8
Acquisition-related costs, including amortization	18		0.1		42		2.2		(3)		—
Acquisition of Prometheus	—		—		2,139		113.3		—		—
Other	80		0.4		(13)		(0.7)		(3)		—
	$	2,803	14.1	%	$	1,512	80.0	%	$	1,918	11.7	%

Where applicable, the impact of changes in uncertain tax positions is reflected in the reconciling items above.

Income Before Taxes

Income before taxes consisted of:


Years Ended December 31	2024		2023		2022
Domestic	$	(1,849)	$	(15,622)	$	1,011
Foreign	21,785		17,511		15,433
	$	19,936	$	1,889	$	16,444

Taxes on Income

Taxes on income consisted of:


Years Ended December 31	2024		2023		2022
Current provision
Federal	$	944	$	928	$	2,265
Foreign	3,123		2,435		1,164
State	(15)		48		57
	4,052		3,411		3,486
Deferred provision
Federal	(1,475)		(1,559)		(1,510)
Foreign	212		(233)		71
State	14		(107)		(129)
	(1,249)		(1,899)		(1,568)
	$	2,803	$	1,512	$	1,918

Deferred Income Taxes

Deferred income taxes at December 31 consisted of:


	2024				2023
	Assets		Liabilities		Assets		Liabilities
Product intangibles and licenses	$	71	$	978	$	—	$	1,308
R&D capitalization	3,062		—		2,099		—
Inventory related	84		413		86		370
Accelerated depreciation	—		645		—		626
Undistributed foreign earnings	275		371		76		118
Equity investments	—		90		—		73
Pensions and other postretirement benefits	224		400		323		249
Compensation related	400		—		357		—
Unrecognized tax benefits	152		—		147		—
Net operating losses and other tax credit carryforwards	910		—		868		—
Other	802		159		755		214
Subtotal	5,980		3,056		4,711		2,958
Valuation allowance	(710)				(656)
Total deferred taxes	$	5,270	$	3,056	$	4,055	$	2,958
Net deferred income taxes	$	2,214			$	1,097
Recognized as:
Other Assets	$	3,601			$	1,968
Deferred Income Taxes			$	1,387			$	871

Income Taxes Paid

Income taxes paid in 2024, 2023 and 2022 consisted of:


Years Ended December 31	2024		2023		2022
Domestic (1)	$	974	$	2,258	$	1,891
Foreign	2,954		2,080		1,348
	$	3,928	$	4,338	$	3,239

(1) Includes TCJA transition tax payments.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2024		2023		2022
Balance January 1	$	2,384	$	1,835	$	1,529
Additions related to current year positions	421		553		344
Additions related to prior year positions	35		91		48
Reductions for tax positions of prior years	(33)		(20)		(40)
Settlements	(18)		(23)		(6)
Lapse of statute of limitations (1)	(528)		(52)		(40)
Balance December 31	$	2,261	$	2,384	$	1,835

(1) Amount in 2024 reflects a reduction of $451 million resulting from the expiration of the statute of limitations related to the 2019 and 2020 federal tax return years.