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Taxes on Earnings from Continuing Operations (Tables)
12 Months Ended
Dec. 31, 2021
Taxes on Earnings from Continuing Operations  
Schedule of earnings from continuing operations before taxes

(in millions)

    

2021

    

2020

     

2019

Earnings From Continuing Operations Before Taxes:

Domestic

$

3,264

$

1,588

$

889

Foreign

 

4,947

 

3,380

3,188

Total

$

8,211

$

4,968

$

4,077

Schedule of provisions for taxes on earnings from continuing operations

(in millions)

    

2021

    

2020

    

2019

Taxes on Earnings From Continuing Operations:

    

    

Current:

Domestic

$

859

$

39

$

291

Foreign

 

790

 

566

590

Total current

 

1,649

 

605

881

Deferred:

Domestic

 

(355)

 

(18)

(305)

Foreign

 

(154)

 

(90)

(186)

Total deferred

 

(509)

 

(108)

(491)

Total

$

1,140

$

497

$

390

Schedule of reconciliation of income tax rate and U.S. statutory tax rate to income tax expense (benefit)

    

2021

    

2020

     

2019

  

Statutory tax rate on earnings from continuing operations

 

21.0

%  

21.0

%

21.0

%

Impact of foreign operations

 

(3.9)

(3.3)

(5.0)

Impact of TCJA and other related items

0.5

(2.1)

Foreign-derived intangible income benefit

(1.1)

(1.0)

(2.0)

Domestic impairment loss

(0.1)

(2.7)

Excess tax benefits related to stock compensation

(1.7)

(1.9)

(2.5)

Research tax credit

(0.6)

(1.0)

(1.2)

Resolution of certain tax positions pertaining to prior years

 

(0.7)

(2.8)

Intercompany restructurings and integration

0.1

0.5

State taxes, net of federal benefit

 

0.4

0.5

0.8

All other, net

 

0.5

0.2

0.6

Effective tax rate on earnings from continuing operations

 

13.9

%  

10.0

%

9.6

%

Schedule of components of net deferred tax assets and liabilities

(in millions)

    

2021

    

2020

Deferred tax assets:

Compensation and employee benefits

 

$

618

$

1,003

Other, primarily reserves not currently deductible, and NOL’s and credit carryforwards

2,425

2,483

Trade receivable reserves

206

196

Inventory reserves

169

146

Lease liabilities

273

259

Deferred intercompany profit

261

254

Total deferred tax assets before valuation allowance

3,952

4,341

Valuation allowance

(1,180)

(1,160)

Total deferred tax assets

2,772

3,181

Deferred tax liabilities:

Depreciation

(330)

(297)

Right of Use lease assets

(264)

(251)

Other, primarily the excess of book basis over tax basis of intangible assets

(2,364)

(2,876)

Total deferred tax liabilities

(2,958)

(3,424)

Total net deferred tax assets (liabilities)

 

$

(186)

$

(243)

Schedule of reconciliation of unrecognized tax benefits for the period

(in millions)

    

2021

    

2020

January 1

$

1,210

$

1,175

Increase due to current year tax positions

 

143

190

Increase due to prior year tax positions

 

748

97

Decrease due to prior year tax positions

 

(119)

(144)

Settlements

 

(35)

(27)

Lapse of statute

(39)

(81)

December 31

$

1,908

$

1,210