Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Schedule of earnings before income taxes

years ended December 31 (in millions)	2013			2012		2011
Domestic	$	(581	)	$	625	$	626
Foreign		5,913			5,100		3,042
Total earnings before income taxes	$	5,332		$	5,725	$	3,668

Schedule of components of income taxes

years ended December 31 (in millions)	2013			2012		2011
Current
Domestic	$	226		$	94	$	177
Foreign		354			252		390
Total current taxes	$	580		$	346	$	567
Deferred
Domestic	$	678		$	89	$	(198	)
Foreign		(54	)		15		(134	)
Total deferred taxes		624			104		(332	)
Total income taxes	$	1,204		$	450	$	235

Schedule of effective tax rate reconciliation

years ended December 31 (in millions)	2013			2012			2011
Statutory tax rate		35.0	%		35.0	%		35.0	%
Effect of foreign operations		(11.5	)		(23.5	)		(25.4	)
Resolution of uncertain tax positions		—			(3.4	)		(11.2	)
Non-deductible litigation loss		—			0.6			12.9
Puerto Rico excise tax credit		(1.9	)		(1.2	)		(3.2	)
State taxes, net of federal benefit		0.4			0.1			0.3
All other, net		0.6			0.3			(2.0	)
Effective tax rate		22.6	%		7.9	%		6.4	%

Schedule of deferred tax assets and liabilities

as of December 31 (in millions)	2013			2012
Deferred tax assets
Compensation and employee benefits	$	279		$	190
Accruals and reserves		252			173
Chargebacks and rebates		333			403
Deferred revenue		348			283
Depreciation		64			42
State income taxes		67			87
Other		122			274
Net operating losses and other credit carryforwards		115			92
Total deferred tax assets		1,580			1,544
Valuation allowances		(43	)		(7	)
Total net deferred tax assets	$	1,537		$	1,537
Deferred tax liabilities
Excess of book basis over tax basis of intangible assets	$	(508	)	$	(500	)
Repatriation of foreign earnings		(606	)		—
Total deferred tax liabilities	$	(1,114	)	$	(500	)
Net deferred tax asset	$	423		$	1,037

Schedule of unrecognized tax benefits

years ended December 31 (in millions)	2013			2012			2011
Balance as of January 1	$	1,140		$	1,039		$	1,645
Increase due to current year tax positions		195			370			294
Increase due to prior year tax positions		—			1			149
Decrease due to current year tax positions		—			—			(15	)
Decrease due to prior year tax positions		—			(220	)		(604	)
Settlements		—			(50	)		(430	)
Separation-related adjustments		(1,088	)		—			—
Balance as of December 31	$	247		$	1,140		$	1,039