Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income before income tax provision and the income tax expense

Income before income tax provision and the income tax expense consist of the following:

	For the Years Ended December 31,
(In millions)	2017			2016			2015
Income before income taxes (benefit):
Domestic	$	3,540.4		$	3,655.4		$	3,386.7
Foreign	1,588.4			1,277.6			1,380.6
Total	$	5,128.8		$	4,933.0		$	4,767.3
Income tax expense (benefit):
Current:
Federal	$	2,201.4		$	1,304.3		$	1,214.1
State	57.0			55.1			38.6
Foreign	108.6			52.9			54.5
Total	2,367.0			1,412.3			1,307.2
Deferred:
Federal	$	241.0		$	(125.6	)	$	(129.6	)
State	9.9			(3.8		)	(1.9		)
Foreign	(159.2		)	(45.6		)	(14.1		)
Total	91.7			(175.0		)	(145.6		)
Total income tax expense	$	2,458.7		$	1,237.3		$	1,161.6

Components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities are summarized as follows:

	As of December 31,
(In millions)	2017			2016
Deferred tax assets:
Tax credits	$	60.0		$	201.1
Inventory, other reserves and accruals	147.8			250.6
Intangibles, net	378.8			459.8
Net operating loss	209.8			65.9
Share-based compensation	26.9			61.5
Other	25.1			49.0
Valuation allowance	(16.6		)	(16.1		)
Total deferred tax assets	$	831.8		$	1,071.8
Deferred tax liabilities:
Purchased intangible assets	$	(250.7	)	$	(376.6	)
Depreciation, amortization and other	(107.9		)	(113.5		)
Total deferred tax liabilities	$	(358.6	)	$	(490.1	)

Reconciliation between the U.S. federal statutory tax rate and effective tax rate

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

	For the Years Ended December 31,
	2017		2016		2015
Statutory rate	35.0	%	35.0	%	35.0	%
State taxes	0.8		0.9		0.5
Taxes on foreign earnings	(11.1	)	(9.6	)	(10.0	)
Credits and net operating loss utilization	(0.8	)	(1.4	)	(1.3	)
Purchased intangible assets	1.4		1.2		1.0
Manufacturing deduction	(1.9	)	(1.9	)	(1.8	)
2017 Tax Act	22.9		—		—
Impairment of ZINBRYTA related tax assets	0.9		—		—
Other permanent items	0.7		0.5		0.7
Other	—		0.4		0.3
Effective tax rate	47.9	%	25.1	%	24.4	%

Reconciliation of beginning and ending amount of unrecognized tax benefits

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

(In millions)	2017			2016			2015
Balance at January 1,	$	32.4		$	67.9		$	131.5
Additions based on tax positions related to the current period	5.7			7.2			10.5
Additions for tax positions of prior periods	7.3			36.3			19.5
Reductions for tax positions of prior periods	(21.8		)	(13.3		)	(49.9		)
Statute expirations	(1.4		)	(1.4		)	(1.2		)
Settlement refund (payment)	44.6			(64.3		)	(42.5		)
Balance at December 31,	$	66.8		$	32.4		$	67.9