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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income before Provision for Income Taxes, Classified by Source of Income

Income before provision for income taxes, classified by source of income, was as follows:

In millions	2018				2017				2016
U.S.	$	2,218.0			$	2,242.0			$	2,059.4
Outside the U.S.	5,598.1				6,331.5				4,806.6
Income before provision for income taxes	$	7,816.1			$	8,573.5			$	6,866.0

Provision for Income Taxes, Classified by Timing and Location of Payment

The provision for income taxes, classified by the timing and location of payment, was as follows:

In millions	2018				2017				2016
U.S. federal	$	292.9			$	2,030.8			$	1,046.6
U.S. state	183.9				169.8				121.3
Outside the U.S.	1,312.4				1,217.0				1,550.2
Current tax provision	1,789.2				3,417.6				2,718.1
U.S. federal	145.7				(120.1		)		(122.1		)
U.S. state	18.7				12.8				14.1
Outside the U.S.	(61.8		)		70.9				(430.6		)
Deferred tax provision	102.6				(36.4		)		(538.6		)
Provision for income taxes	$	1,891.8			$	3,381.2			$	2,179.5

Net Deferred Tax Liabilities

Net deferred tax liabilities consisted of:

In millions	December 31, 2018						2017
Property and equipment			$	1,288.9			$	1,211.5
Intangible liabilities			312.3				296.2
Other			347.9				242.0
Total deferred tax liabilities			1,949.1				1,749.7
Property and equipment			(658.9		)		(633.8		)
Employee benefit plans			(213.3		)		(253.1		)
Intangible assets			(1,081.5		)		(228.8		)
Deferred foreign tax credits			(216.6		)		(208.6		)
Deferred revenue			(138.9		)		—
Operating loss carryforwards			(45.7		)		(71.1		)
Other			(269.2		)		(266.0		)
Total deferred tax assets before valuation allowance			(2,624.1		)		(1,661.4		)
Valuation allowance			671.1				163.2
Net deferred tax (assets) liabilities			$	(3.9	)		$	251.5
Balance sheet presentation:
Deferred income taxes			$	1,215.5			$	1,119.4
Other assets-miscellaneous			(1,219.4		)		(867.9		)
Net deferred tax (assets) liabilities			$	(3.9	)		$	251.5

Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates

The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows:

	2018			2017			2016
Statutory U.S. federal income tax rate	21.0	%		35.0	%		35.0	%
State income taxes, net of related federal income tax benefit	1.8			1.2			1.5
Foreign income taxed at different rates	1.5			(4.6	)		(6.5	)
Transition tax	1.0			13.7			—
US net deferred tax liability remeasurement	—			(6.0	)		—
Other, net	(1.1	)		0.1			1.7
Effective income tax rates	24.2	%		39.4	%		31.7	%

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits:

In millions	2018				2017
Balance at January 1	$	1,180.4			$	924.1
Decreases for positions taken in prior years	(64.1		)		(13.7		)
Increases for positions taken in prior years	180.8				143.9
Increases for positions related to the current year	75.1				140.2
Settlements with taxing authorities	(24.1		)		(6.5		)
Lapsing of statutes of limitations	(5.3		)		(7.6		)
Balance at December 31(1)	$	1,342.8			$	1,180.4

(1)

Of this amount, $1,313.7 million and $1,132.3 million are included in Other long-term liabilities for 2018 and 2017, respectively, and $12.5 million and $30.8 million are included in Prepaid expenses and other current assets for 2018 and 2017, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet.

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Unrecognized Tax Benefits Reconciliation, Table

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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