XML 96 R65.htm IDEA: XBRL DOCUMENT v3.22.4
Tax Matters - Deferred Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred Tax Assets    
Prepaid/deferred items - Deferred tax assets [1] $ 1,768 $ 1,889
Accrued/deferred royalties - Deferred tax assets [1] 2,127 777
Inventories - Deferred tax assets [1] 672 408
Intangible assets - Deferred tax assets [1],[2] 1,445 1,542
Property, plant and equipment - Deferred tax assets [1] 112 117
Employee benefits - Deferred tax assets [1],[3] 1,314 1,594
Restructurings and other charges - Deferred tax assets [1] 302 303
Legal and product liability reserves - Deferred tax assets [1] 385 373
Research and development - Deferred tax assets [1],[4] 4,137 1,656
Net operating loss/tax credit carryforwards - Deferred tax assets [1],[5],[6] 2,224 1,431
State and local tax adjustments - Deferred tax assets [1] 151 197
Investments - Deferred tax assets [1],[7] 91 70
All other - Deferred tax assets [1] 78 89
Subtotal - Deferred tax assets [1] 14,806 10,446
Valuation allowance [1] (1,541) (1,462)
Total deferred taxes - Deferred tax assets [1] 13,265 8,983
Deferred Tax Liabilities    
Prepaid/deferred items - Deferred tax liabilities [1] (533) (456)
Inventories - Deferred tax liabilities [1] (262) (56)
Intangible assets - Deferred tax liabilities [1],[2] (6,288) (4,577)
Property, plant and equipment - Deferred tax liabilities [1] (1,845) (1,647)
Employee benefits - Deferred tax liabilities [1],[3] (276) (178)
Unremitted earnings - Deferred tax liabilities [1] (51) (45)
Investments - Deferred tax liabilities [1],[7] (208) (689)
All other - Deferred tax liabilities [1] (56) (68)
Deferred tax liabilities, gross [1] (9,519) (7,714)
Net deferred tax asset [1],[8] $ 3,746 $ 1,269
[1] The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 1Q.
[2] The increase in net deferred tax liabilities in 2022 is primarily due to the acquisition of intangible assets related to GBT, Arena and Biohaven, partially offset by the amortization of intangible assets and certain impairment charges.
[3] The decrease in net deferred tax assets in 2022 is primarily due to changes in pension and postretirement benefit obligations, as well as the performance of plan assets reported in the period. See Note 11.
[4] The increase in deferred tax assets in 2022 is related to the TCJA requirement to capitalize R&D costs for tax years beginning after December 31,2021.
[5] The increase in deferred tax assets in 2022 is primarily due to the acquisition of net operating loss carryforwards and credit carryforwards related to Arena, GBT and Biohaven. See Note 2A.
[6] The amounts in 2022 and 2021 are reduced for unrecognized tax benefits of $1.2 billion and $3.0 billion, respectively, where we have net operating loss carryforwards, similar tax losses, and/or tax credit carryforwards that are available, under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position.
[7] The decrease in net deferred tax liabilities in 2022 is primarily due to the impact of foreign currency translation adjustments related to our equity-method investment in Haleon/the Consumer Healthcare JV. See Note 2C.
[8] In 2022, Noncurrent deferred tax assets and other noncurrent tax assets ($4.8 billion), and Noncurrent deferred tax liabilities ($1.0 billion). In 2021, Noncurrent deferred tax assets and other noncurrent tax assets ($1.6 billion), and Noncurrent deferred tax liabilities ($0.3 billion).