Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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)	2024		2023		2022
Domestic	$	(261)	$	(394)	$	(1,119)
Foreign	2,542		2,379		2,260
	$	2,282	$	1,985	$	1,141

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)	2024		2023		2022
Current
Federal	$	310	$	189	$	51
State	31		15		19
Foreign	184		116		381
	526		320		451
Deferred
Federal	(131)		(82)		(92)
State	(52)		(22)		(32)
Foreign	92		176		117
	(90)		73		(7)
	$	436	$	393	$	443

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)	2024		2023
Deferred Tax Assets:
Inventory costs and related reserves	$	15	$	30
Tax benefit of net operating losses and credits	774		744
Reserves and accruals	320		305
Restructuring-related charges	12		14
Litigation and product liability reserves	79		88
Investment write-down	73		58
Compensation related	186		154
Federal benefit of uncertain tax positions	25		11
Intangible assets	3,059		3,394
Capitalized R&D	329		232
Operating lease liabilities	117		—
	4,990		5,029
Less: valuation allowance	(1,268)		(1,220)
	3,722		3,809
Deferred Tax Liabilities:
Property, plant and equipment	29		24
Unrealized gains and losses on derivative financial instruments	81		66
Operating right-of-use asset	111		—
Other	1		12
	222		102
Net Deferred Tax Assets	3,500		3,707
Prepaid on intercompany profit	307		315
Net Deferred Tax Assets and Prepaid on Intercompany Profit	$	3,807	$	4,022

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		2024		2023
Prepaid on intercompany profit	Prepaid income taxes	$	307	$	315
Non-current deferred tax asset	Deferred tax assets	3,655		3,841
Deferred Tax Assets and Prepaid on Intercompany Profit		3,962		4,157
Non-current deferred tax liability	Deferred tax liabilities	155		134
Deferred Tax Liabilities		155		134
Net Deferred Tax Assets and Prepaid on Intercompany Profit		$	3,807	$	4,022

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)	2024		2023		2022
Beginning Balance	$	467	$	492	$	255
Additions based on positions related to the current year	58		65		88
Additions based on positions related to prior years	20		67		177
Reductions for tax positions of prior years	(20)		(114)		(20)
Settlements with taxing authorities	—		(14)		(1)
Statute of limitation expirations	(18)		(29)		(8)
Ending Balance	$	506	$	467	$	492

Tax rate

The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes is as follows:

	Year Ended December 31,
	2024		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.1	%	0.7	%	0.7	%
Domestic taxes on foreign earnings	9.2	%	6.9	%	15.3	%
Effect of foreign taxes	(12.2)	%	(15.3)	%	(3.8)	%
Acquisition-related	1.5	%	2.2	%	4.4	%
Research credit	(3.1)	%	(2.9)	%	(4.5)	%
Valuation allowance	0.4	%	7.5	%	(1.3)	%
Compensation-related	(0.1)	%	0.5	%	0.6	%
Non-deductible expenses	0.6	%	0.4	%	0.4	%
Uncertain tax positions	1.3	%	(0.5)	%	7.7	%
Return to provision	0.5	%	(0.1)	%	(2.1)	%
Change in tax rates	0.1	%	(0.6)	%	(0.2)	%
Other, net	(0.2)	%	0.0	%	0.7	%
Reported tax rate	19.1	%	19.8	%	38.9	%