Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consists of the following (in millions):

	Year Ended December 31,
	2019		2018		2017
Domestic	$	4,112	$	7,074	$	8,099
Foreign	1,048		725		5,430
Income before provision for income taxes	$	5,160	$	7,799	$	13,529

Schedule Of Provision For Income Taxes

	Year Ended December 31,
	2019			2018			2017
Federal:
Current	$	1,646		$	1,716		$	8,817
Deferred	(843		)	324			(123		)
	803			2,040			8,694
State:
Current	135			162			97
Deferred	(42		)	(17		)	(20		)
	93			145			77
Foreign:
Current	124			175			54
Deferred	(1,224		)	(21		)	60
	(1,100		)	154			114
Provision for income taxes	$	(204	)	$	2,339		$	8,885

Schedule Of Difference Between Provision For Income Taxes And Federal Statutory Income Tax Rate To Income Before Provision For Income Taxes

The reconciliation between the federal statutory tax rate applied to income before taxes and our effective tax rate is summarized as follows:

	Year Ended December 31,
	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
State taxes, net of federal benefit	0.4	%	0.6	%	0.1	%
Foreign earnings at different rates	(2.5	)%	(0.9	)%	(11.2	)%
Research and other credits	(1.9	)%	(1.1	)%	(0.6	)%
US tax on foreign earnings	4.3	%	2.1	%	1.2	%
Deferred tax - intra-entity transfer of intangible assets	(24.0	)%	7.5	%	—	%
Transition tax	—	%	(0.7	)%	42.9	%
Deferred tax revaluation	—	%	0.8	%	(2.3	)%
Settlement of tax examinations	(2.4	)%	(1.9	)%	—	%
Other	1.1	%	2.6	%	0.6	%
Effective tax rate	(4.0	)%	30.0	%	65.7	%

Schedule of Deferred Tax Assets and Liabilities

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

	December 31,
	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	184		$	344
Stock-based compensation	113			163
Reserves and accruals not currently deductible	423			426
Excess of tax basis over book basis of intangible assets	1,232			—
Up-front and milestone payments	988			97
Research and other credit carryforwards	247			363
Other, net	168			183
Total deferred tax assets before valuation allowance	3,355			1,576
Valuation allowance	(217		)	(331		)
Total deferred tax assets	3,138			1,245
Deferred tax liabilities:
Property, plant and equipment	(88		)	(47		)
Excess of book basis over tax basis of intangible assets	(1,401		)	(1,656		)
Other	(93		)	(80		)
Total deferred tax liabilities	(1,582		)	(1,783		)
Net deferred tax assets (liabilities)	$	1,556		$	(538	)

Schedule Of Unrecognized Tax Benefits Roll Forward

The following is a rollforward of our total gross unrecognized tax benefits (in millions):

	Year Ended December 31,
	2019			2018			2017
Balance, beginning of period	$	1,595		$	2,181		$	1,852
Tax positions related to current year:
Additions	138			64			299
Reductions	—			—			—
Tax positions related to prior years:
Additions	405			125			67
Reductions	—			—			(16		)
Settlements	(104		)	(774		)	(12		)
Lapse of statute of limitations	(3		)	(1		)	(9		)
Balance, end of period	$	2,031		$	1,595		$	2,181