Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

Income before income taxes included the following (in millions):

	Years ended December 31,
	2021		2020		2019
Domestic	$	1,850	$	4,087	$	4,371
Foreign	4,851		4,046		4,767
Total income before income taxes	$	6,701	$	8,133	$	9,138

Provision for income taxes

The provision for income taxes included the following (in millions):

	Years ended December 31,
	2021		2020		2019
Current provision:
Federal	$	865	$	921	$	1,284
State	18		34		39
Foreign	359		277		277
Total current provision	1,242		1,232		1,600
Deferred benefit:
Federal	(308)		(321)		(276)
State	(9)		9		(22)
Foreign	(117)		(51)		(6)
Total deferred benefit	(434)		(363)		(304)
Total provision for income taxes	$	808	$	869	$	1,296

Significant components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities were as follows (in millions):

	December 31,
	2021		2020
Deferred income tax assets:
NOL and credit carryforwards	$	1,065	$	794
Accrued expenses	600		561
Expenses capitalized for tax	244		144
Stock-based compensation	96		92
Other	326		301
Total deferred income tax assets	2,331		1,892
Valuation allowance	(663)		(571)
Net deferred income tax assets	1,668		1,321
Deferred income tax liabilities:
Acquired intangible assets	(824)		(903)
Debt	(275)		(282)
Fixed assets	(129)		(148)
Other	(221)		(189)
Total deferred income tax liabilities	(1,449)		(1,522)
Total deferred income taxes, net	$	219	$	(201)

Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits)

The reconciliations of the total gross amounts of UTBs were as follows (in millions):

	Years ended December 31,
	2021		2020		2019
Beginning balance	$	3,352	$	3,287	$	3,061
Additions based on tax positions related to the current year	171		165		215
Additions based on tax positions related to prior years	35		3		22
Reductions for tax positions of prior years	(4)		(35)		(11)
Settlements	(8)		(68)		—
Ending balance	$	3,546	$	3,352	$	3,287

Reconciliation between the federal statutory tax rate and effective tax rate

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows:

	Years ended December 31,
	2021		2020		2019
Federal statutory tax rate	21.0	%	21.0	%	21.0	%
Foreign earnings	(7.8)	%	(4.7)	%	(4.5)	%
Foreign-derived intangible income	(1.0)	%	(0.7)	%	(0.7)	%
Credits, Puerto Rico excise tax	(3.4)	%	(2.9)	%	(2.6)	%
Interest on uncertain tax positions	1.1	%	1.1	%	1.6	%
Credits, primarily federal R&D	(2.1)	%	(1.4)	%	(1.0)	%
Acquisition IPR&D	4.9	%	—	%	—	%
Audit settlements	—	%	(1.0)	%	—	%
Other, net	(0.6)	%	(0.7)	%	0.4	%
Effective tax rate	12.1	%	10.7	%	14.2	%