Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Tax rate

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

	Year Ended December 31,
	2020		2019		2018
			(reclassified)(1)		(reclassified)(1)
U.S. federal statutory income tax rate	(21.0)	%	21.0	%	21.0	%
State income taxes, net of federal benefit	16.6	%	6.7	%	0.1	%
Domestic taxes on foreign earnings	155.4	%	21.9	%	0.5	%
Effect of foreign taxes	(40.7)	%	(47.6)	%	(8.4)	%
Acquisition-related	(16.7)	%	12.2	%	2.1	%
Research credit	(43.0)	%	(4.2)	%	(2.6)	%
Valuation allowance	(42.0)	%	1.1	%	(5.2)	%
Goodwill impairment charges	3.7	%	—	%	—	%
Compensation-related	(7.7)	%	(0.3)	%	(1.0)	%
Non-deductible expenses	64.4	%	3.6	%	0.8	%
Uncertain tax positions	(96.8)	%	1.4	%	(22.0)	%
TCJA net impact	—	%	—	%	(4.7)	%
Intra-entity asset transfers	10.2	%	(597.0)	%	—	%
Return to provision	(37.3)	%	(0.2)	%	(0.2)	%
Change in tax rates	51.8	%	(0.2)	%	0.5	%
Other, net	6.0	%	(2.4)	%	1.6	%
	2.9	%	(584.0)	%	(17.5)	%

(1)    Due to the disclosure of additional rate reconciling items in 2020, we have reclassified select items in prior years to align with the new categories disclosed in the current year.

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)	2020		2019		2018
Beginning Balance	$	455	$	427	$	1,238
Additions based on positions related to the current year	28		30		79
Additions based on positions related to prior years	6		45		4
Reductions for tax positions of prior years	(186)		(34)		(433)
Settlements with taxing authorities	(27)		(4)		(459)
Statute of limitation expirations	(15)		(9)		(3)
Ending Balance	$	261	$	455	$	427

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)	2020		2019		2018
Domestic	$	(660)	$	(1,145)	$	35
Foreign	581		1,832		1,387
	$	(79)	$	687	$	1,422

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

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

	As of December 31,
(in millions)	2020		2019
Deferred Tax Assets:
Inventory costs and related reserves	$	10	$	—
Tax benefit of net operating loss and credits	557		545
Reserves and accruals	308		258
Restructuring-related charges	23		20
Litigation and product liability reserves	82		168
Investment write-down	—		42
Compensation related	134		121
Federal benefit of uncertain tax positions	9		10
Intangible assets	3,551		3,447
Other	(6)		—
	4,668		4,611
Less: valuation allowance	(887)		(915)
	3,781		3,696
Deferred Tax Liabilities:
Property, plant and equipment	1		16
Unrealized gains and losses on derivative financial instruments	12		52
Investment write-up	34		—
Inventory costs and related reserves	—		2
Other	—		25
	47		95
Net Deferred Tax Assets	3,734		3,601
Prepaid on intercompany profit	194		195
Net Deferred Tax Assets and Prepaid on Intercompany Profit	$	3,928	$	3,796

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		2020		2019
Prepaid on intercompany profit	Prepaid income taxes	$	194	$	195
Non-current deferred tax asset	Assets held for sale	2		—
Non-current deferred tax asset	Deferred tax assets	4,210		4,196
Deferred Tax Assets and Prepaid on Intercompany Profit		4,406		4,391
Non-current deferred tax liability	Deferred tax liabilities	330		595
Non-current deferred tax liability	Liabilities held for sale in Other current liabilities	148		—
Deferred Tax Liabilities		478		595
Net Deferred Tax Assets and Prepaid on Intercompany Profit		$	3,928	$	3,796

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

The related expense (benefit) for income taxes consisted of the following:

	Year Ended December 31,
(in millions)	2020		2019		2018
Current
Federal	$	(29)	$	120	$	(221)
State	(35)		54		(27)
Foreign	151		101		160
	87		275		(87)
Deferred
Federal	(26)		(146)		(124)
State	(6)		(18)		4
Foreign	(53)		(4,124)		(42)
	(85)		(4,288)		(162)
	$	2	$	(4,013)	$	(249)