Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income before income tax provision and the income tax expense

Income before income tax (benefit) expense and the income tax (benefit) expense consist of the following:

	For the Years Ended December 31,
(In millions)	2023		2022		2021
Income before income tax (benefit) expense:
Domestic	$	192.4	$	1,842.0	$	448.3
Foreign	1,104.4		1,749.8		1,296.9
Total income before income tax (benefit) expense	$	1,296.8	$	3,591.8	$	1,745.2
Income tax (benefit) expense:
Current:
Federal	$	377.6	$	694.5	$	319.1
State	15.1		39.0		23.1
Foreign	48.4		67.9		137.1
Total current	441.1		801.4		479.3
Deferred:
Federal	(587.4)		(328.3)		(242.5)
State	(12.7)		2.5		(11.9)
Foreign	294.3		157.2		(172.4)
Total deferred	(305.8)		(168.6)		(426.8)
Total income tax (benefit) expense	$	135.3	$	632.8	$	52.5

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)	2023		2022
Deferred tax assets:
Tax credits	$	252.8	$	112.6
Inventory, other reserves and accruals	203.7		202.8
Intangibles, net	1,153.9		1,370.3
Neurimmune's tax basis in ADUHELM	—		470.3
IRC Section 174 capitalized research and development	570.8		271.8
Net operating loss	1,700.4		1,845.9
Share-based compensation	36.1		37.2
Other	293.3		280.7
Valuation allowance	(1,278.7)		(2,003.3)
Total deferred tax assets	$	2,932.3	$	2,588.3
Deferred tax liabilities:
Purchased inventory valuation step-up and intangible assets	$	(1,257.4)	$	(76.1)
Samsung Bioepis investment installments	(35.5)		(138.0)
GILTI	(1,136.9)		(1,002.0)
Tax credits	—		(228.7)
Depreciation, amortization and other	(215.7)		(251.8)
Total deferred tax liabilities	$	(2,645.5)	$	(1,696.6)

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,
	2023		2022		2021
Statutory rate	21.0	%	21.0	%	21.0	%
State taxes	1.1		1.1		0.8
Taxes on foreign earnings	(5.9)		(4.9)		(10.5)
Tax credits	(7.3)		(1.7)		(3.8)
Purchased inventory valuation step-up and intangible assets	0.7		0.3		(1.6)
GILTI	(0.6)		0.7		1.3
Sale of Samsung Bioepis	—		(1.6)		—
Litigation settlement agreement	—		2.6		—
Neurimmune tax impacts	—		2.3		(5.3)
Internal reorganization	(0.1)		(1.4)		—
Other, including permanent items	1.5		(0.8)		1.1
Effective tax rate	10.4	%	17.6	%	3.0	%

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)	2023		2022		2021
Beginning balance	$	606.4	$	563.4	$	75.7
Additions based on tax positions related to the current period	5.2		36.3		4.2
Additions for tax positions of prior periods	60.2		23.4		509.9
Reductions for tax positions of prior periods	(485.0)		(14.9)		(18.8)
Statute expirations	(2.1)		(1.6)		(3.2)
Settlement refund (payment)	(11.3)		(0.2)		(4.4)
Ending balance	$	173.4	$	606.4	$	563.4