v3.25.4
Tax Matters - Tax Rate Reconciliation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory income tax $ 1,579    
Changes in tax laws or rates enacted in the current period (153)    
Cross border tax laws      
Branches (432)    
Foreign-derived deduction-eligible income (FDDEI) (172)    
GILTI (NCTI) 187    
Other [1] (3)    
Non-taxable or non-deductible items      
Charitable contributions (99)    
Compensation 109    
Other [1] 79    
Tax credits      
GILTI, other (868)    
Subpart-F income (369)    
R&D (109)    
Other [1] (16)    
Other reconciling items      
State income taxes, net of federal effects [2] (4)    
Change in valuation allowance (91)    
Other foreign jurisdictions 177    
Provision/(benefit) for taxes on income $ (266) $ (28) $ (1,115)
Percentage      
U.S. statutory income tax rate 21.00% 21.00% 21.00% [3]
Changes in tax laws or rates enacted in the current period (2.00%)    
Cross border tax laws      
Branches (5.70%)    
Foreign-derived deduction-eligible income (FDDEI) (2.30%) (1.20%) (33.10%) [3]
GILTI (NCTI) 2.50%    
Other [1] 0.00%    
Non-taxable or non-deductible items      
Charitable contributions (1.30%) (1.70%) (7.30%) [3]
Compensation 1.40%    
Other [1] 1.10%    
Tax credits      
GILTI, other (11.50%)    
Subpart-F income (4.90%)    
R&D (1.50%) (1.80%) (15.80%) [3]
Other [1] (0.20%)    
Other reconciling items      
State income taxes, net of federal effects (0.10%) [2] (2.50%) [4] (22.40%) [3],[4]
Change in valuation allowance (1.20%)    
Statutory income tax rate differential [5],[6]   (7.90%) (21.10%) [3]
Non-deductible interest expense [7]   2.20% 13.50% [3]
Worldwide changes in unrecognized tax benefits 2.40%    
Transition Tax liability [8]   (6.00%) 0.00% [3]
Tax settlements and resolution of certain tax positions [8]   (2.40%) (40.30%) [3]
All other, net [9]   0.10% 0.20% [3]
Total (3.50%) (0.40%) (105.40%) [3]
Ireland [Member]      
Other reconciling items      
Intercompany license agreement(s) $ 118    
Other [1] 57    
Statutory income tax rate differential $ (268)    
Other reconciling items      
Intercompany license agreement(s) 1.60%    
Other [1] 0.80%    
Statutory income tax rate differential (3.60%)    
Puerto Rico [Member]      
Other reconciling items      
Statutory income tax rate differential [10] $ (81)    
Other reconciling items      
Statutory income tax rate differential [10] (1.10%)    
Singapore [Member]      
Other reconciling items      
Other [1],[11] $ 89    
Statutory income tax rate differential [11] (315)    
Non-deductible interest expense [11] $ 345    
Other reconciling items      
Other [1],[11] 1.20%    
Statutory income tax rate differential [11] (4.20%)    
Non-deductible interest expense [11] 4.60%    
Foreign Tax Jurisdiction, Other [Member]      
Other reconciling items      
Statutory income tax rate differential $ 276    
Other reconciling items      
Statutory income tax rate differential 3.70%    
U.S. [Member]      
Cross border tax laws      
Other [1] $ (71)    
Other reconciling items      
Intercompany license agreement(s) (221)    
Other [1] $ (10)    
Cross border tax laws      
Other [1] (0.90%)    
Other reconciling items      
Intercompany license agreement(s) (2.90%)    
Other [1] (0.10%)    
[1] Primarily comprises items which, individually, do not require separate disclosure pursuant to guidance provided in ASU 2023-09.
[2] State taxes in California, Kentucky and Tennessee make up the majority of the tax effect in this category.
[3] The higher rate percentages for the 2023 reconciling items are significantly impacted by the lower domestic and international Income from continuing operations before provision/(benefit) for taxes on income (see Note 5A).
[4] Includes the impact of U.S. state and local taxes and changes in the state valuation allowances including those related to the acquisition of Seagen.
[5] For taxation of non-U.S. operations, this rate impact reflects the income tax rates and relative earnings in the locations where we do business outside the U.S., together with the U.S. tax cost on our international operations, changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions,” as well as changes in valuation allowances. Specifically: (i) the jurisdictional location of earnings is a significant component of our effective tax rate each year, and the rate impact of this component is influenced by the specific location of non-U.S. earnings and the level of such earnings as compared to our total earnings; (ii) the U.S. tax implications of our foreign operations is a significant component of our effective tax rate each year and generally offsets some of the reduction to our effective tax rate each year resulting from the jurisdictional location of earnings; (iii) the impact of certain tax initiatives; and (iv) the impact of changes in uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions” is a component of our effective tax rate each year that can result in either an increase or decrease to our effective tax rate. The jurisdictional mix of earnings, which includes the impact of the location of earnings as well as the U.S. tax cost on our international operations, can vary as a result of operating fluctuations in the normal course of business and as a result of the extent and location of other income and expense items, such as restructuring charges, asset impairments and gains and losses on strategic business decisions. See also Note 5A for the components of pre-tax income and Provision/(benefit) for taxes on income, which is based on the location of the taxing authorities, and for information about settlements and other items impacting Provision/(benefit) for taxes on income.
[6] In both years, the reduction in our effective tax rate is a result of the jurisdictional location of earnings and is largely due to lower tax rates in certain jurisdictions, as well as manufacturing and other incentives for our subsidiaries in Singapore and, to a lesser extent, in Puerto Rico. We have Puerto Rican tax incentives pursuant to a grant that expires during 2053. Under such grant, we are partially exempt from income, property and municipal taxes. In Singapore, we have incentive tax rates effective through 2048 on income from manufacturing and other operations.
[7] Includes changes in interest related to our uncertain tax positions not included in the reconciling item called “Tax settlements and resolution of certain tax positions”.
[8] See Note 5A.
[9] All other, net is primarily due to routine business operations.
[10] We have tax incentives pursuant to a grant that expires during 2053. Under such grant, we are partially exempt from income, property and municipal taxes.
[11] We have grants and incentive tax rates effective through 2048 on income from manufacturing and other operations.