Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Our Income (loss) before income taxes consisted of the following:

	Year Ended December 31,
(in millions)	2023		2022		2021
Domestic	$	(394)	$	(1,119)	$	(648)
Foreign	2,379		2,260		1,724
	$	1,985	$	1,141	$	1,076

Schedule of Components of Income Tax Expense (Benefit)

The related expense (benefit) for income taxes consisted of the following:

	Year Ended December 31,
(in millions)	2023		2022		2021
Current
Federal	$	189	$	51	$	18
State	15		19		33
Foreign	116		381		127
	320		451		178
Deferred
Federal	(82)		(92)		(256)
State	(22)		(32)		(3)
Foreign	176		117		117
	73		(7)		(142)
	$	393	$	443	$	36

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
(in millions)	2023		2022
Deferred Tax Assets:
Inventory costs and related reserves	$	30	$	19
Tax benefit of net operating losses and credits	744		511
Reserves and accruals	305		304
Restructuring-related charges	14		6
Litigation and product liability reserves	88		103
Investment write-down	58		38
Compensation related	154		136
Federal benefit of uncertain tax positions	11		9
Intangible assets	3,394		3,668
Capitalized R&D	232		160
Property, plant and equipment	—		2
	5,029		4,954
Less: valuation allowance	(1,220)		(1,004)
	3,809		3,950
Deferred Tax Liabilities:
Property, plant and equipment	24		—
Unrealized gains and losses on derivative financial instruments	66		117
Other	12		34
	102		151
Net Deferred Tax Assets	3,707		3,799
Prepaid on intercompany profit	315		264
Net Deferred Tax Assets and Prepaid on Intercompany Profit	$	4,022	$	4,062

Our deferred tax assets, deferred tax liabilities and prepaid on intercompany profit are included in the following locations within our accompanying consolidated balance sheets (in millions):

	Location on Consolidated Balance Sheets	As of December 31,
Component		2023		2022
Prepaid on intercompany profit	Prepaid income taxes	$	315	$	264
Non-current deferred tax asset	Deferred tax assets	3,841		3,942
Deferred Tax Assets and Prepaid on Intercompany Profit		4,157		4,206
Non-current deferred tax liability	Deferred tax liabilities	134		144
Deferred Tax Liabilities		134		144
Net Deferred Tax Assets and Prepaid on Intercompany Profit		$	4,022	$	4,062

Summary of Income Tax Contingencies

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

	Year Ended December 31,
(in millions)	2023		2022		2021
Beginning Balance	$	492	$	255	$	261
Additions based on positions related to the current year	65		88		8
Additions based on positions related to prior years	67		177		41
Reductions for tax positions of prior years	(114)		(20)		(36)
Settlements with taxing authorities	(14)		(1)		(2)
Statute of limitation expirations	(29)		(8)		(17)
Ending Balance	$	467	$	492	$	255

Tax rate

The reconciliation of income taxes at the federal statutory rate to the actual expense (benefit) for income taxes is as follows:

	Year Ended December 31,
	2023		2022		2021
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.7	%	0.7	%	2.5	%
Domestic taxes on foreign earnings	6.9	%	15.3	%	6.8	%
Effect of foreign taxes	(15.3)	%	(3.8)	%	(14.3)	%
Acquisition-related	2.2	%	4.4	%	(8.1)	%
Research credit	(2.9)	%	(4.5)	%	(3.0)	%
Valuation allowance	7.5	%	(1.3)	%	0.8	%
Compensation-related	0.5	%	0.6	%	(0.6)	%
Non-deductible expenses	0.4	%	0.4	%	0.4	%
Uncertain tax positions	(0.5)	%	7.7	%	1.2	%
Return to provision	(0.1)	%	(2.1)	%	(5.7)	%
Change in tax rates	(0.6)	%	(0.2)	%	1.9	%
Other, net	—	%	0.7	%	0.4	%
	19.8	%	38.9	%	3.3	%