v3.20.4
Tax Matters - Deferred Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Deferred Tax Assets    
Prepaid/deferred items - Deferred tax assets [1],[2] $ 3,094 $ 1,918
Inventories - Deferred tax assets [1] 276 267
Intangible assets - Deferred tax assets [1],[3] 793 718
Property, plant and equipment - Deferred tax assets [1] 211 177
Employee benefits - Deferred tax assets [1] 1,981 2,115
Restructurings and other charges - Deferred tax assets [1] 291 212
Legal and product liability reserves - Deferred tax assets [1] 382 469
Net operating loss/credit carryforwards - Deferred tax assets [1],[4] 1,761 2,003
State and local tax adjustments - Deferred tax assets [1] 171 152
Investments - Deferred tax assets [1],[5] 128 11
All other - Deferred tax assets [1] 102 167
Subtotal - Deferred tax assets [1] 9,189 8,208
Valuation allowance [1] (1,586) (1,526)
Total deferred taxes - Deferred tax assets [1] 7,603 6,682
Deferred Tax Liabilities    
Prepaid/deferred items - Deferred tax liabilities [1],[2] (352) (204)
Inventories - Deferred tax liabilities [1] (25) (10)
Intangible assets - Deferred tax liabilities [1],[3] (5,355) (6,784)
Property, plant and equipment - Deferred tax liabilities [1] (1,219) (1,204)
Employee benefits - Deferred tax liabilities [1] (127) (37)
Unremitted earnings - Deferred tax liabilities [1] (46) (77)
Investments - Deferred tax liabilities [1],[5] (3,545) (3,318)
All other - Deferred tax liabilities [1] (57) (9)
Deferred tax liabilities, gross [1] (10,726) (11,643)
Net deferred tax liability [1],[6] $ (3,123) $ (4,961)
[1] The deferred tax assets and liabilities associated with global intangible low-taxed income are included in the relevant categories. See Note 5A.
[2] The increase in 2020 is primarily related to the capitalization of certain R&D-related expenses.
[3] The decrease in 2020 is primarily the result of amortization of intangible assets and certain impairment charges.
[4] The amounts in 2020 and 2019 are reduced for unrecognized tax benefits of $3.0 billion and $2.9 billion, respectively, where we have net operating loss carryforwards, similar tax losses, and/or tax credit carryforwards that are available, under the tax law of the applicable jurisdiction, to settle any additional income taxes that would result from the disallowance of a tax position.
[5] The amounts in 2020 and 2019 are primarily related to the Consumer Healthcare JV. See Note 2C.
[6] In 2020, Noncurrent deferred tax assets and other noncurrent tax assets ($0.9 billion), and Noncurrent deferred tax liabilities ($4.1 billion). In 2019, Noncurrent deferred tax assets and other noncurrent tax assets ($0.7 billion), and Noncurrent deferred tax liabilities ($5.7 billion).