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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Following is the composition of income tax expense:
 
2017
 
2016
 
2015
Current:
 
 
 
 
 
Federal
$
(100.6
)
 
$
(57.0
)
 
$
660.5

Foreign
38.5

 
378.9

 
422.0

State
4.0

 
(125.0
)
 
47.5

2017 Tax Act - provisional

3,247.5

 
—

 
—

Total current tax expense
3,189.4

 
196.9

 
1,130.0

Deferred:
 
 
 
 
 
Federal
801.5

 
517.0

 
(689.6
)
Foreign
(256.3
)
 
(83.3
)
 
(66.0
)
State
0.4

 
5.8

 
7.2

2017 Tax Act - provisional
(1,333.5
)
 
—

 
—

Total deferred tax (benefit) expense
(787.9
)
 
439.5

 
(748.4
)
Income taxes
$
2,401.5

 
$
636.4

 
$
381.6
Schedule of Additional Income Tax Disclosures
Cash payments of income taxes were as follows:
 
2017
 
2016
 
2015
Cash payments of income taxes
$
246.5

 
$
700.6

 
$
969.0
Schedule of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities as of December 31 are as follows:
 
2017
 
2016
Deferred tax assets:
 
 
 
Compensation and benefits
$
1,021.7

 
$
1,126.0

Tax loss carryforwards and carrybacks
501.4

 
327.3

Tax credit carryforwards and carrybacks
473.0

 
458.9

Purchases of intangible assets
443.1

 
620.3

Product return reserves
88.4

 
128.1

Other comprehensive loss on hedging transactions
68.9

 
123.3

Debt
53.5

 
95.3

Contingent consideration
41.8

 
142.7

Other
555.8

 
587.3

Total gross deferred tax assets
3,247.6

 
3,609.2

Valuation allowances
(709.1
)
 
(648.3
)
Total deferred tax assets
2,538.5

 
2,960.9

Deferred tax liabilities:
 
 
 
Inventories
(654.8
)
 
(955.5
)
Intangibles
(314.6
)
 
(604.2
)
Property and equipment
(282.1
)
 
(398.6
)
Prepaid employee benefits
(231.5
)
 
(265.3
)
Financial instruments
(41.5
)
 
(279.3
)
Unremitted earnings
(16.6
)
 
(673.6
)
Total deferred tax liabilities
(1,541.1
)
 
(3,176.5
)
Deferred tax assets (liabilities) - net
$
997.4

 
$
(215.6
)
Schedule of Effective Income Tax Rate Reconciliation
Following is a reconciliation of the income tax expense applying the U.S. federal statutory rate to income before income taxes to reported income tax expense:
 
2017
 
2016
 
2015
Income tax at the U.S. federal statutory tax rate
$
769.1

 
$
1,180.9

 
$
976.5

Add (deduct):
 
 
 
 
 
International operations, including Puerto Rico
(428.9
)
 
(313.7
)
 
(565.2
)
General business credits
(66.8
)
 
(58.3
)
 
(69.2
)
2017 Tax Act - provisional
1,914.0

 
—

 
—

Non-deductible acquired IPR&D - CoLucid (Note 3)
300.1

 
—

 
—

Other
(86.0
)
 
(172.5
)
 
39.5

Income taxes
$
2,401.5

 
$
636.4

 
$
381.6
Summary of Income Tax Contingencies
We recognize both accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized income tax (benefit) expense related to interest and penalties as follows:
 
2017
 
2016
 
2015
Income tax (benefit) expense
$
27.4

 
$
(52.5
)
 
$
13.2

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
 
2017
 
2016
 
2015
Beginning balance at January 1
$
853.4

 
$
1,066.6

 
$
1,338.8

Additions based on tax positions related to the current year
133.8

 
73.4

 
131.3

Additions for tax positions of prior years
97.5

 
14.8

 
116.6

Reductions for tax positions of prior years
(59.3
)
 
(15.2
)
 
(45.2
)
Settlements
(2.4
)
 
(171.9
)
 
(446.2
)
Lapses of statutes of limitation
(19.3
)
 
(110.0
)
 
(4.0
)
Changes related to the impact of foreign currency translation
10.8

 
(4.3
)
 
(24.7
)
Ending balance at December 31
$
1,014.5

 
$
853.4

 
$
1,066.6