Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income before income tax provision and the income tax expense

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

	For the Years Ended December 31,
(In millions)	2022		2021		2020
Income before income tax (benefit) expense:
Domestic	$	1,842.0	$	448.3	$	3,290.0
Foreign	1,749.8		1,296.9		1,757.5
Total income before income tax (benefit) expense	$	3,591.8	$	1,745.2	$	5,047.5
Income tax (benefit) expense:
Current:
Federal	$	694.5	$	319.1	$	647.0
State	39.0		23.1		41.2
Foreign	67.9		137.1		155.1
Total current	801.4		479.3		843.3
Deferred:
Federal	(328.3)		(242.5)		(1,749.9)
State	2.5		(11.9)		(6.8)
Foreign	157.2		(172.4)		1,905.7
Total deferred	(168.6)		(426.8)		149.0
Total income tax (benefit) expense	$	632.8	$	52.5	$	992.3

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)	2022		2021
Deferred tax assets:
Tax credits	$	112.6	$	121.0
Inventory, other reserves and accruals	202.8		199.4
Intangibles, net	1,370.3		1,477.5
Neurimmune's tax basis in ADUHELM	470.3		475.8
IRC Section 174 capitalized research and development	271.8		—
Net operating loss	1,845.9		1,973.0
Share-based compensation	37.2		31.7
Other	280.7		208.8
Valuation allowance	(2,003.3)		(1,961.3)
Total deferred tax assets	$	2,588.3	$	2,525.9
Deferred tax liabilities:
Purchased intangible assets	$	(76.1)	$	(256.6)
Samsung Bioepis investment installments	(138.0)		—
GILTI	(1,002.0)		(1,037.6)
Tax credits	(228.7)		(260.2)
Depreciation, amortization and other	(251.8)		(250.9)
Total deferred tax liabilities	$	(1,696.6)	$	(1,805.3)

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,
	2022		2021		2020
Statutory rate	21.0	%	21.0	%	21.0	%
State taxes	1.1		0.8		0.7
Taxes on foreign earnings	(4.9)		(10.5)		(3.3)
Tax credits	(1.7)		(3.8)		(1.2)
Purchased intangible assets	0.3		(1.6)		0.7
TECFIDERA impairment	—		—		1.8
GILTI	0.7		1.3		1.3
Sale of Samsung Bioepis	(1.6)		—		—
Litigation settlement agreement	2.6		—		—
Neurimmune tax impacts	2.3		(5.3)		(0.1)
Internal reorganization	(1.4)		—		—
Other	(0.8)		1.1		(1.2)
Effective tax rate	17.6	%	3.0	%	19.7	%

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)	2022		2021		2020
Beginning balance	$	563.4	$	75.7	$	129.9
Additions based on tax positions related to the current period	36.3		4.2		1.5
Additions for tax positions of prior periods	23.4		509.9		51.7
Reductions for tax positions of prior periods	(14.9)		(18.8)		(63.6)
Statute expirations	(1.6)		(3.2)		(7.9)
Settlement refund (payment)	(0.2)		(4.4)		(35.9)
Ending balance	$	606.4	$	563.4	$	75.7