Income taxes (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Income Tax Disclosure [Abstract] |
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| Schedule of income before income tax, domestic and foreign |
Income before income taxes included the following (in millions): | | | | | | | | | | | | | | Years ended December 31, | | 2019 | | 2018 | | 2017 | Domestic | $ | 4,371 |
| | $ | 4,856 |
| | $ | 4,436 |
| Foreign | 4,767 |
| | 4,689 |
| | 5,161 |
| Total income before income taxes | $ | 9,138 |
| | $ | 9,545 |
| | $ | 9,597 |
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| Provision for income taxes |
The provision for income taxes included the following (in millions): | | | | | | | | | | | | | | Years ended December 31, | | 2019 | | 2018 | | 2017 | Current provision: | | | | | | Federal | $ | 1,284 |
| | $ | 1,270 |
| | $ | 8,615 |
| State | 39 |
| | 17 |
| | 5 |
| Foreign | 277 |
| | 227 |
| | 275 |
| Total current provision | 1,600 |
| | 1,514 |
| | 8,895 |
| Deferred (benefit) provision: | | | | | | Federal | (276 | ) | | (317 | ) | | (1,120 | ) | State | (22 | ) | | (7 | ) | | — |
| Foreign | (6 | ) | | (39 | ) | | (157 | ) | Total deferred (benefit) provision | (304 | ) | | (363 | ) | | (1,277 | ) | Total provision for income taxes | $ | 1,296 |
| | $ | 1,151 |
| | $ | 7,618 |
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| Significant components of deferred tax assets and liabilities |
Significant components of our deferred tax assets and liabilities were as follows (in millions): | | | | | | | | | | December 31, | | 2019 | | 2018 | Deferred income tax assets: | | | | NOL and credit carryforwards | $ | 800 |
| | $ | 810 |
| Accrued expenses | 457 |
| | 428 |
| Expenses capitalized for tax | 170 |
| | 185 |
| Stock-based compensation | 91 |
| | 95 |
| Other | 269 |
| | 174 |
| Total deferred income tax assets | 1,787 |
| | 1,692 |
| Valuation allowance | (517 | ) | | (509 | ) | Net deferred income tax assets | 1,270 |
| | 1,183 |
| | | | | Deferred income tax liabilities: | | | | Acquired intangible assets | (1,288 | ) | | (1,509 | ) | Debt | (210 | ) | | (184 | ) | Other | (286 | ) | | (267 | ) | Total deferred income tax liabilities | (1,784 | ) | | (1,960 | ) | Total deferred income taxes, net | $ | (514 | ) | | $ | (777 | ) |
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| Reconciliation of total gross amounts of unrecognized tax benefits (excluding interest, penalties, foreign tax credits and the federal tax benefit of state taxes related to unrecognized tax benefits) |
The reconciliations of the total gross amounts of UTBs were as follows (in millions): | | | | | | | | | | | | | | Years ended December 31, | | 2019 | | 2018 | | 2017 | Beginning balance | $ | 3,061 |
| | $ | 2,953 |
| | $ | 2,543 |
| Additions based on tax positions related to the current year | 215 |
| | 173 |
| | 447 |
| Additions based on tax positions related to prior years | 22 |
| | 13 |
| | 1 |
| Reductions for tax positions of prior years | (11 | ) | | (17 | ) | | (5 | ) | Reductions for expiration of statute of limitations | — |
| | — |
| | (5 | ) | Settlements | — |
| | (61 | ) | | (28 | ) | Ending balance | $ | 3,287 |
| | $ | 3,061 |
| | $ | 2,953 |
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| Reconciliation between the federal statutory tax rate and effective tax rate |
The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate were as follows: | | | | | | | | | | | Years ended December 31, | | 2019 | | 2018 | | 2017 | Federal statutory tax rate | 21.0 | % | | 21.0 | % | | 35.0 | % | 2017 Tax Act, net repatriation tax | — | % | | — | % | | 70.7 | % | Foreign earnings | (4.5 | )% | | (4.3 | )% | | (15.8 | )% | 2017 Tax Act, net deferred tax remeasurement | — | % | | — | % | | (6.9 | )% | Credits, Puerto Rico Excise Tax | (2.6 | )% | | (2.5 | )% | | (2.2 | )% | 2017 Tax Act, net impact on intercompany sales | — | % | | (1.8 | )% | | — | % | Interest on uncertain tax positions | 1.6 | % | | 1.2 | % | | 0.6 | % | Credits, primarily federal R&D | (1.0 | )% | | (0.8 | )% | | (0.6 | )% | Share-based payments | (0.3 | )% | | (0.2 | )% | | (0.7 | )% | Other, net | — | % | | (0.5 | )% | | (0.7 | )% | Effective tax rate | 14.2 | % | | 12.1 | % | | 79.4 | % |
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