v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Domestic and Foreign Income Before Income Taxes
The domestic and foreign components of income before income taxes for the years ended December 31 were as follows:
202520242023
(in millions)
United States$6,652 $6,168 $4,506 
Foreign11,926 9,086 9,133 
Income before income taxes$18,578 $15,254 $13,639 
Components of Income Tax Provision
The total income tax provision for the years ended December 31 was comprised of the following components:
202520242023
(in millions)
Current
Federal$1,265 $1,093 $991 
State and local(198)144 127 
Foreign2,486 1,670 1,563 
Total current
3,553 2,907 2,681 
Deferred
Federal(173)(197)(180)
State and local32 (14)(18)
Foreign198 (316)(39)
Total deferred
57 (527)(237)
Income tax expense$3,610 $2,380 $2,444 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate for the years ended December 31, was as follows:
202520242023
AmountPercentAmountPercentAmountPercent
($ in millions)
Income before income taxes$18,578 $15,254 $13,639 
Federal statutory tax3,901 21.0 %3,203 21.0 %2,864 21.0 %
Foreign tax effects
Singapore
Statutory tax rate difference between Singapore and U.S.
(161)(0.9)%(162)(1.1)%(147)(1.1)%
Singapore tax incentive
(330)(1.8)%(644)(4.2)%(571)(4.2)%
Pillar 2 Rules
233 1.3 %— — %— — %
Other foreign jurisdictions
408 2.2 %240 1.6 %374 2.7 %
Effects of cross border tax laws
Foreign-derived intangible income deduction(204)(1.1)%(195)(1.3)%(144)(1.1)%
U.S. foreign tax credits
(259)(1.4)%(224)(1.5)%73 0.5 %
Other
140 0.8 %77 0.5 %110 0.8 %
Effects of changes in tax law
— — %— — %(688)(5.0)%
Valuation allowance
76 0.4 %113 0.7 %644 4.7 %
Other, net$(194)(1.0)%(28)(0.2)%(71)(0.5)%
Income tax expense$3,610 19.4 %$2,380 15.6 %$2,444 17.9 %
Note: Table may not sum due to rounding.
As of January 1, 2025, the Company adopted new FASB guidance related to income tax disclosures on a retrospective basis.
Schedule of Income Taxes Paid he Company paid income taxes, net of refunds, by jurisdiction for the years ended December 31, as follows:
202520242023
(in millions)
Federal
$1,359 $1,279 $1,194 
State
95 155 133 
Foreign
Belgium
668 562 516 
United Kingdom
330 592 429 
Brazil
168 333 254 
Other
400 331 220 
Total
$3,020 $3,252 $2,746 
Schedule of Deferred Tax Assets and Liabilities The components of deferred tax assets and liabilities at December 31 were as follows:
20252024
(in millions)
Deferred tax assets
Accrued liabilities$1,079 $939 
Compensation and benefits408 371 
Net operating losses221 468 
U.S. foreign tax credits802 736 
Property and equipment
482 432 
Intangible assets169 160 
Lease liabilities
143 134 
Other items246 236 
Less: Valuation allowance(974)(871)
Total deferred tax assets
2,576 2,605 
Deferred tax liabilities
Prepaid expenses and other accruals280 195 
Gains on equity investments111 112 
Goodwill and intangible assets718 760 
Right-of-use lease assets
124 116 
Other items83 125 
Total deferred tax liabilities
1,316 1,308 
Net deferred tax assets
$1,260 $1,297 
Summary of Changes to Valuation Allowance on Deferred Tax Assets
The changes in the Company’s valuation allowance on deferred tax assets were as follows:
Balance at December 31, 2022
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2023
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2024
Changes to Related Gross Deferred Tax Assets
Change/(Release)
Balance at December 31, 2025
(in millions)
U.S. foreign tax credit carryforward 1
$— $308 $327 $635 $101 $— $736 $66 $— $802 
Net operating and capital losses 2
114 12 (3)123 11 1 135 34 3 172 
Total$114 $320 $324 $758 $112 $1 $871 $100 $3 $974 
1The 2023 activity resulted in the establishment of the valuation allowance associated with the U.S. foreign tax credit carryforward due to foreign tax legislation enacted in Brazil and the Notice released by Treasury.
2Capital losses are included within other items in the deferred tax assets section of the components of the Deferred Income Taxes table above.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending balance for the Company’s unrecognized tax benefits for the years ended December 31, was as follows:
202520242023
(in millions)
Beginning balance$304 $431 $414 
Additions:
Current year tax positions38 37 23 
Prior year tax positions 1
68 34 16 
Reductions:
Prior year tax positions 1
(93)(189)(7)
Settlements with tax authorities— — — 
Expired statute of limitations(6)(9)(15)
Ending balance$311 $304 $431 
1Includes immaterial translational impact of currency.