v3.25.4
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income before income taxes
Income before income taxes is comprised of the following components:
For Years Ended December 31,
202520242023
U.S.$4,503 $4,438 $6,445 
Non-U.S.1,207 1,015 973 
Total$5,710 $5,453 $7,418 
Provision for income taxes
Provision for income taxes is comprised of the following components:
For Years Ended December 31,
202520242023
CurrentDeferredTotalCurrentDeferredTotalCurrentDeferredTotal
U.S. federal$466 $102 $568 $605 $(139)$466 $943 $(277)$666 
Non-U.S.259 (121)138 244 (71)173 240 (22)218 
U.S. state3 — 3 15 — 15 24 — 24 
Total$728 $(19)$709 $864 $(210)$654 $1,207 $(299)$908 
Principal reconciliation items from U.S. statutory income tax rate to the effective tax rate
Applying the updated requirements in ASU 2023-09 on a prospective basis, the principal reconciling items from the U.S. statutory income tax rate to the effective tax rate (provision for income taxes as a percentage of income before income taxes) are as follows:
For Year Ended December 31,
2025
U.S. statutory income tax rate$1,199 21.0 %
Foreign tax effects:
Malaysia:
Tax incentives(127)(2.2)
Other foreign jurisdictions16 0.3 
Effect of cross-border tax laws:
Foreign derived intangible income(231)(4.0)
Other(30)(0.6)
Tax credits:
R&D tax credit(79)(1.4)
Nontaxable or nondeductible items:
Stock compensation(66)(1.1)
Other9 0.1 
Other adjustments18 0.3 
Effective tax rate$709 12.4 %
For the years ended December 31, 2024, and 2023, prior to the adoption of ASU 2023-09, the principal reconciling items from the U.S. statutory income tax rate to the effective tax rate are as follows:
For Years Ended December 31,
20242023
U.S. statutory income tax rate21.0 %21.0 %
Foreign derived intangible income(6.1)(6.8)
Stock compensation(2.1)(1.0)
R&D tax credit(2.0)(1.3)
Changes in uncertain tax positions0.1 — 
Other1.1 0.3 
Effective tax rate12.0 %12.2 %
Primary components of deferred tax assets and liabilities
The primary components of deferred tax assets and liabilities are as follows:
December 31,
20252024
Deferred tax assets:
Capitalized R&D$1,019 $1,076 
Accrued expenses315 297 
Deferred loss and tax credit carryforwards230 216 
Stock compensation226 186 
Inventories112 105 
Other31 40 
Total deferred tax assets, before valuation allowance1,933 1,920 
Valuation allowance(230)(212)
Total deferred tax assets, after valuation allowance1,703 1,708 
Deferred tax liabilities:
Property, plant and equipment(443)(441)
CHIPS Act incentives(299)(336)
International earnings(35)(33)
Other(25)(15)
Total deferred tax liabilities(802)(825)
Net deferred tax asset$901 $883 
The deferred tax assets and liabilities based on tax jurisdictions are presented on our Consolidated Balance Sheets as follows:
December 31,
20252024
Deferred tax assets$967 $936 
Deferred tax liabilities(66)(53)
Net deferred tax asset$901 $883 
Summary of income taxes paid net of refunds
Applying the updated requirements in ASU 2023-09 on a prospective basis, cash payments made for income taxes, net of refunds, are as follows:
For Year Ended December 31,
2025
U.S. federal taxes$253 
U.S. state taxes6 
Foreign taxes:
Taiwan72 
Germany51 
Other foreign jurisdictions174 
Total cash taxes paid556 
ITC proceeds from CHIPS Act incentives(260)
Total cash taxes paid, net of refunds$296 
Total cash taxes paid, net of refunds$296 
ITC used to reduce income taxes payable335 
ITC proceeds from CHIPS Act incentives260 
Total cash taxes paid without CHIPS Act incentives$891 
Summary of uncertain tax positions
The changes in the total amounts of uncertain tax positions are as follows:
202520242023
Balance, January 1$85 $82 $82 
Additions based on tax positions related to the current year2 3 3 
Additions for tax positions of prior years— — — 
Reductions for tax positions of prior years— — (3)
Balance, December 31$87 $85 $82 
Interest income (expense) recognized in the year ended December 31$9 $(5)$(9)
Interest payable as of December 31$22 $15 $10 
Summary of uncertain tax positions
The changes in the total amounts of uncertain tax positions are as follows:
202520242023
Balance, January 1$85 $82 $82 
Additions based on tax positions related to the current year2 3 3 
Additions for tax positions of prior years— — — 
Reductions for tax positions of prior years— — (3)
Balance, December 31$87 $85 $82 
Interest income (expense) recognized in the year ended December 31$9 $(5)$(9)
Interest payable as of December 31$22 $15 $10