v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before Provision for Income Taxes
The components of income before provision for income taxes are as follows (in millions):
 Year Ended December 31, 
 202220212020
Domestic$25,025 $43,669 $24,233 
Foreign3,794 3,615 8,947 
Income before provision for income taxes$28,819 $47,284 $33,180 
Schedule of Provision for Income Taxes The provision for income taxes consists of the following (in millions):
 Year Ended December 31, 
 202220212020
Current:   
Federal$6,094 $4,971 $3,297 
State874 548 523 
Foreign1,928 1,786 1,211 
Total current tax expense8,896 7,305 5,031 
Deferred:   
Federal(2,776)585 (859)
State(405)43 (122)
Foreign(96)(19)(16)
Total deferred tax (benefits)/expense(3,277)609 (997)
Provision for income taxes$5,619 $7,914 $4,034 
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Tax Rate
A reconciliation of the U.S. federal statutory income tax rates to our effective tax rate is as follows (in percentages):
 Year Ended December 31, 
 202220212020
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
State income taxes, net of federal benefit1.0 1.0 0.8 
Share-based compensation2.6 (1.7)(1.4)
Research and development tax credits(2.4)(1.3)(1.3)
Foreign-derived intangible income deduction(7.0)(3.5)(1.9)
Effect of non-U.S. operations3.0 0.9 (2.4)
Research and development capitalization— — (3.0)
Other1.3 0.3 0.4 
Effective tax rate19.5 %16.7 %12.2 %
Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets (liabilities) are as follows (in millions):
 December 31, 
 20222021
Deferred tax assets:  
Loss carryforwards$234 $2,443 
Tax credit carryforwards1,576 1,385 
Share-based compensation368 319 
Accrued expenses and other liabilities1,627 1,195 
Lease liabilities3,200 2,597 
Capitalized research and development8,175 1,691 
Unrealized losses in securities and investments489 — 
Other621 449 
Total deferred tax assets16,290 10,079 
Less: valuation allowance(2,493)(1,586)
Deferred tax assets, net of valuation allowance13,797 8,493 
Deferred tax liabilities:  
Depreciation and amortization(6,296)(4,425)
Right-of-use assets(2,555)(2,339)
Total deferred tax liabilities(8,851)(6,764)
Net deferred tax assets$4,946 $1,729 
Schedule of Gross Unrecognized Tax Benefits Roll Forward
The following table reflects changes in the gross unrecognized tax benefits (in millions):
 Year Ended December 31, 
 202220212020
Gross unrecognized tax benefits ‑ beginning of period$9,807 $8,692 $7,863 
Increases related to prior year tax positions210 328 356 
Decreases related to prior year tax positions(172)(86)(253)
Increases related to current year tax positions1,166 963 1,045 
Decreases related to settlements of prior year tax positions(254)(90)(319)
Gross unrecognized tax benefits ‑ end of period$10,757 $9,807 $8,692