Income taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes included the following (in millions):


	Years ended December 31,
	2025		2024		2023
Domestic	$	8,220	$	4,040	$	4,047
Foreign	756		569		3,808
Total income before income taxes	$	8,976	$	4,609	$	7,855

Schedule of Provision for Income Taxes

The provision for income taxes included the following (in millions):


	Years ended December 31,
	2025		2024		2023
Current provision:
Federal	$	959	$	965	$	1,524
State	35		33		43
Foreign	971		759		786
Total current provision	1,965		1,757		2,353
Deferred benefit:
Federal	(465)		(860)		(1,124)
State	7		(18)		(25)
Foreign	(242)		(360)		(66)
Total deferred benefit	(700)		(1,238)		(1,215)
Total provision for income taxes	$	1,265	$	519	$	1,138

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities were as follows (in millions):


	December 31,
	2025		2024
Deferred income tax assets:
NOL and credit carryforwards	$	1,368	$	1,352
Accrued expenses	890		693
Capitalized research and development expenses	1,655		1,762
Investments	—		1
Expenses capitalized for tax	218		200
Earnings of foreign subsidiaries	2,305		1,496
Stock-based compensation	138		130
Other	349		361
Total deferred income tax assets	6,923		5,995
Valuation allowance	(1,299)		(1,019)
Net deferred income tax assets	5,624		4,976

Deferred income tax liabilities:
Acquired intangible assets	(2,065)		(2,573)
Debt	(260)		(264)
Fixed assets	(192)		(143)
Fair value of acquired inventory	(28)		(114)
Investments	(422)		—
Other	(271)		(244)
Total deferred income tax liabilities	(3,238)		(3,338)
Total deferred income taxes, net	$	2,386	$	1,638

Schedule of Reconciliation of Total Gross Amounts of UTBs

The reconciliations of the total gross amounts of UTBs were as follows (in millions):


	Years ended December 31,
	2025		2024		2023
Beginning balance	$	4,184	$	4,012	$	3,770
Additions based on tax positions related to the current year	190		188		196
Additions based on tax positions related to prior years	14		9		56
Reductions for tax positions of prior years	(13)		(12)		—
Reductions for expiration of statute of limitations	—		(9)		(4)
Settlements	(4)		(4)		(6)
Ending balance	$	4,371	$	4,184	$	4,012

Schedule of Reconciliation of Federal Statutory Tax Rate

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate for 2025 were as follows (in millions, except percentages):


	Year ended December 31, 2025
	Tax Effect		Effective Tax Rate
Federal statutory tax rate	$	1,885	21.0	%
Foreign tax effects:
Ireland:
Tax rate differential	316		3.5	%
Valuation allowance	119		1.3	%
Other	22		0.2	%
Puerto Rico:
Tax rate differential	469		5.2	%
Act 52 - withholding tax	456		5.1	%
Act 52 - income tax	(968)		(10.8)	%
Singapore:
Tax incentive grant	(122)		(1.4)	%
Pillar Two minimum tax	147		1.6	%
Other	(29)		(0.3)	%
Other foreign jurisdictions	199		2.2	%
Effect of cross-border tax laws:
U.S. tax on foreign subsidiaries (net of credits and deferred taxes)	(545)		(6.0)	%
Foreign-derived intangible income	(222)		(2.5)	%
Other	(18)		(0.2)	%
Tax credits:
Credit on foreign taxes imposed on U.S. income	(456)		(5.0)	%
Research and development tax credits	(272)		(3.0)	%
Other adjustments	86		1.0	%
Changes in unrecognized tax benefits (primarily interest)	198		2.2	%
Effective tax rate	$	1,265	14.1	%

The reconciliations between the federal statutory tax rate applied to income before income taxes and our effective tax rate for 2024 and 2023 were as follows:


	Years ended December 31,
	2024		2023
Federal statutory tax rate	21.0	%	21.0	%
Foreign earnings	(5.8)	%	(5.1)	%
Foreign-derived intangible income	(3.0)	%	(1.3)	%
Credits, Puerto Rico excise tax	—	%	0.3	%

Interest on uncertain tax positions	4.2	%	2.6	%
Credits, primarily federal R&D	(5.4)	%	(3.5)	%

Other, net	0.3	%	0.5	%
Effective tax rate	11.3	%	14.5	%

Schedule of Income Taxes Paid (Net of Refunds Received

Income taxes paid (net of refunds received) included the following (in millions):


	Year ended December 31, 2025
U.S. payments (federal and state)	$	3,390
Puerto Rico payments	610
Other foreign payments	300
Total income taxes paid (net of refunds received)	$	4,300