XML 62 R18.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Income Taxes (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Examination [Line Items] |
Income Tax Disclosure [Text Block] | Income Taxes The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year, excluding any deferred income tax assets and liabilities of acquired businesses. The components of the provision for income taxes for the years ended December 31 are as follows:
(in millions) |  | 2021 |  | 2020 |  | 2019
Current Provision: |  |  |  |  |  |
Federal |  | $ | 3,451 |  |  | $ | 4,098 |  |  | $ | 2,629 |
State and local |  | 481 |  |  | 392 |  |  | 319 |
Foreign |  | 516 |  |  | 491 |  |  | 564 |
Total current provision |  | 4,448 |  |  | 4,981 |  |  | 3,512 |
Deferred provision (benefit) |  | 130 |  |  | (8) |  |  | 230 |
Total provision for income taxes |  | $ | 4,578 |  |  | $ | 4,973 |  |  | $ | 3,742 |
The reconciliation of the tax provision at the U.S. federal statutory rate to the provision for income taxes and the effective tax rate for the years ended December 31 is as follows:
(in millions, except percentages) |  | 2021 |  | 2020 |  | 2019
Tax provision at the U.S. federal statutory rate |  | $ | 4,685 |  |  | 21.0 | % |  | $ | 4,356 |  |  | 21.0 | % |  | $ | 3,776 |  |  | 21.0 | %
State income taxes, net of federal benefit |  | 419 |  |  | 1.9 |  |  | 315 |  |  | 1.5 |  |  | 271 |  |  | 1.5 |
Share-based awards - excess tax benefit |  | (100) |  |  | (0.4) |  |  | (130) |  |  | (0.6) |  |  | (132) |  |  | (0.7) |
Non-deductible compensation |  | 144 |  |  | 0.6 |  |  | 134 |  |  | 0.7 |  |  | 119 |  |  | 0.7 |
Health insurance tax |  | — |  |  | — |  |  | 626 |  |  | 3.0 |  |  | — |  |  | — |
Foreign rate differential |  | (246) |  |  | (1.1) |  |  | (164) |  |  | (0.8) |  |  | (214) |  |  | (1.2) |
Other, net |  | (324) |  |  | (1.5) |  |  | (164) |  |  | (0.8) |  |  | (78) |  |  | (0.5) |
Provision for income taxes |  | $ | 4,578 |  |  | 20.5 | % |  | $ | 4,973 |  |  | 24.0 | % |  | $ | 3,742 |  |  | 20.8 | %
Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting bases of assets and liabilities based on enacted tax rates and laws. The components of deferred income tax assets and liabilities as of December 31 are as follows:
(in millions) |  | 2021 |  | 2020
Deferred income tax assets: |  |  |  |
Accrued expenses and allowances |  | $ | 723 |  |  | $ | 815 |
U.S. federal and state net operating loss carryforwards |  | 287 |  |  | 276 |
Share-based compensation |  | 117 |  |  | 98 |
Nondeductible liabilities |  | 296 |  |  | 252 |
Non-U.S. tax loss carryforwards |  | 435 |  |  | 340 |
Lease liability |  | 1,284 |  |  | 1,200 |
Other-domestic |  | 228 |  |  | 126 |
Other-non-U.S. |  | 376 |  |  | 454 |
Subtotal |  | 3,746 |  |  | 3,561 |
Less: valuation allowances |  | (198) |  |  | (170) |
Total deferred income tax assets |  | 3,548 |  |  | 3,391 |
Deferred income tax liabilities: |  |  |  |
U.S. federal and state intangible assets |  | (2,658) |  |  | (2,588) |
Non-U.S. goodwill and intangible assets |  | (512) |  |  | (606) |
Capitalized software |  | (833) |  |  | (731) |
Depreciation and amortization |  | (349) |  |  | (346) |
Prepaid expenses |  | (256) |  |  | (216) |
Outside basis in partnerships |  | (565) |  |  | (342) |
Lease right-of-use asset |  | (1,267) |  |  | (1,179) |
Net unrealized gains on investments |  | (125) |  |  | (400) |
Other-non-U.S. |  | (248) |  |  | (350) |
Total deferred income tax liabilities |  | (6,813) |  |  | (6,758) |
Net deferred income tax liabilities |  | $ | (3,265) |  |  | $ | (3,367) |
Valuation allowances are provided when it is considered more likely than not deferred tax assets will not be realized. The valuation allowances primarily relate to future tax benefits on certain federal, state and non-U.S. net operating loss carryforwards. Gross federal net operating loss carryforwards of $42 million expire beginning in 2023 through 2037 and $295 million have an indefinite carryforward period; state net operating loss carryforwards expire beginning in 2022 through 2041, with some having an indefinite carryforward period. Substantially all of the non-U.S. tax loss carryforwards have indefinite carryforward periods. As of December 31, 2021, the Company’s undistributed earnings from non-U.S. subsidiaries are intended to be indefinitely reinvested in non-U.S. operations, and therefore no U.S. deferred taxes have been recorded. Taxes payable on the remittance of such earnings would be minimal. A reconciliation of the beginning and ending amount of unrecognized tax benefits as of December 31 is as follows:
(in millions) |  | 2021 |  | 2020 |  | 2019
Gross unrecognized tax benefits, beginning of period |  | $ | 1,829 |  |  | $ | 1,423 |  |  | $ | 1,056 |
Gross increases: |  |  |  |  |  |
Current year tax positions |  | 538 |  |  | 416 |  |  | 512 |
Prior year tax positions |  | 10 |  |  | 120 |  |  | 2 |
Gross decreases: |  |  |  |  |  |
Prior year tax positions |  | (47) |  |  | (130) |  |  | (96) |
Settlements |  | — |  |  | — |  |  | (46) |
Statute of limitations lapses |  | (20) |  |  | — |  |  | (5) |
Gross unrecognized tax benefits, end of period |  | $ | 2,310 |  |  | $ | 1,829 |  |  | $ | 1,423 |
The Company believes it is reasonably possible its liability for unrecognized tax benefits will decrease in the next twelve months by $42 million as a result of audit settlements and the expiration of statutes of limitations. The Company classifies net interest and penalties associated with uncertain income tax positions as income taxes within its Consolidated Statements of Operations. During the years ended December 31, 2021, 2020 and 2019, the Company recognized $66 million, $52 million and $19 million of net interest and penalties, respectively. The Company had $194 million and $128 million of accrued interest and penalties for uncertain tax positions as of December 31, 2021 and 2020, respectively. These amounts are not included in the reconciliation above. As of December 31, 2021, there were $1.2 billion of unrecognized tax benefits which, if recognized, would affect the effective tax rate. The Company currently files income tax returns in the United States, various states and localities and non-U.S. jurisdictions. The U.S. Internal Revenue Service (IRS) has completed exams on the consolidated income tax returns for fiscal years 2016 and prior. The Company’s 2017 through 2020 tax years are under review by the IRS under its Compliance Assurance Program. With the exception of a few states, the Company is no longer subject to income tax examinations prior to the 2014 tax year. In general, the Company is subject to examination in non-U.S. jurisdictions for years 2015 and forward.

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_IncomeTaxExaminationLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration