Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Tax rate

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

	Year Ended December 31,
	2018		2017		2016
			(reclassified)(1)		(reclassified)(1)
U.S. federal statutory income tax rate	21.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	0.4	%	(1.0	)%	(2.1	)%
Domestic taxes on foreign earnings	0.5	%	0.4	%	0.5	%
Effect of foreign taxes	(8.3	)%	(38.9	)%	(142.1	)%
Acquisition-related	2.1	%	(1.7	)%	11.3	%
Research credit	(2.6	)%	(2.6	)%	(15.5	)%
Valuation allowance	(5.2	)%	(4.1	)%	(42.2	)%
Compensation-related	(1.0	)%	(2.5	)%	6.4	%
Non-deductible expenses	0.3	%	2.2	%	6.6	%
Uncertain tax positions	(22.0	)%	10.7	%	49.5	%
TCJA net impact	(4.7	)%	91.4	%	—	%
Other, net	1.8	%	(0.2	)%	(3.5	)%
	(17.5	)%	88.8	%	(95.9	)%

(1) Due to the inclusion of new tax provisions in 2018 created by the TJCA, we have reclassified select items in prior years to align with the new categories established in 2018, domestic taxes on foreign earnings and uncertain tax positions.

Summary of Income Tax Contingencies [Table Text Block]

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

	Year Ended December 31,
(in millions)	2018			2017			2016
Beginning Balance	$	1,238		$	1,095		$	1,056
Additions based on positions related to the current year	79			134			47
Additions based on positions related to prior years	4			16			14
Reductions for tax positions of prior years	(433		)	(3		)	(17		)
Settlements with taxing authorities	(459		)	(2		)	(3		)
Statute of limitation expirations	(3		)	(2		)	(2		)
Ending Balance	$	427		$	1,238		$	1,095

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

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

	Year Ended December 31,
(in millions)	2018		2017			2016
Domestic	$	35	$	(408	)	$	(1,019	)
Foreign	1,387		1,341			1,196
	$	1,422	$	933		$	177

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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		2018			2017
Prepaid on intercompany profit	Prepaid income taxes	$	161		$	66
Non-current deferred tax asset	Other long-term assets	87			88
Deferred Tax Assets and Prepaid on Intercompany Profit		249			154
Non-current deferred tax liability	Deferred income taxes	328			191
Deferred Tax Liabilities		328			191
Net Deferred Tax Assets (Liabilities) and Prepaid on Intercompany Profit		$	(80	)	$	(37	)

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

	As of December 31,
(in millions)	2018			2017
Deferred Tax Assets:
Inventory costs and related reserves	$	18		$	29
Tax benefit of net operating loss and credits	450			478
Reserves and accruals	258			179
Restructuring-related charges	12			12
Litigation and product liability reserves	221			383
Investment write-down	28			32
Compensation related	106			104
Federal benefit of uncertain tax positions	10			163
Other	37			48
	1,140			1,428
Less: valuation allowance	(344		)	(465		)
	796			963
Deferred Tax Liabilities:
Property, plant and equipment	25			33
Unrealized gains and losses on derivative financial instruments	44			5
Intangible assets	968			1,028
	1,037			1,066
Net Deferred Tax Assets / (Liabilities)	(241		)	(103		)
Prepaid on intercompany profit	161			66
Net Deferred Tax Assets / (Liabilities) and Prepaid on Intercompany Profit	$	(80	)	$	(37	)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The related benefit for income taxes consisted of the following:

	Year Ended December 31,
(in millions)	2018			2017			2016
Current
Federal	$	(221	)	$	320		$	31
State	(27		)	9			6
Foreign	160			255			136
	(87		)	584			173
Deferred
Federal	(124		)	272			(337		)
State	4			1			(14		)
Foreign	(42		)	(28		)	8
	(162		)	244			(343		)
	$	(249	)	$	828		$	(170	)