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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

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	2019				2018				2017
U.S.	$	2,159.1			$	2,218.0			$	2,242.0
Outside the U.S.	5,859.0				5,598.1				6,331.5
Income before provision for income taxes	$	8,018.1			$	7,816.1			$	8,573.5

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	2019				2018				2017
U.S. federal	$	521.8			$	292.9			$	2,030.8
U.S. state	194.7				183.9				169.8
Outside the U.S.	1,126.5				1,312.4				1,217.0
Current tax provision	1,843.0				1,789.2				3,417.6
U.S. federal	38.5				145.7				(120.1		)
U.S. state	20.0				18.7				12.8
Outside the U.S.	91.2				(61.8		)		70.9
Deferred tax provision	149.7				102.6				(36.4		)
Provision for income taxes	$	1,992.7			$	1,891.8			$	3,381.2

Net Deferred Tax Liabilities

Net deferred tax liabilities consisted of:

In millions	December 31, 2019						2018
Lease right-of-use asset			$	3,296.8			$	—
Property and equipment			1,316.4				1,288.9
Intangible assets			334.8				312.3
Other			511.1				347.9
Total deferred tax liabilities			5,459.1				1,949.1
Lease liability			(3,331.1		)		—
Intangible assets			(1,051.0		)		(1,081.5		)
Property and equipment			(585.6		)		(658.9		)
Deferred foreign tax credits			(311.2		)		(216.6		)
Employee benefit plans			(192.3		)		(213.3		)
Deferred revenue			(145.5		)		(138.9		)
Operating loss carryforwards			(81.5		)		(45.7		)
Other			(323.6		)		(269.2		)
Total deferred tax assets before valuation allowance			(6,021.8		)		(2,624.1		)
Valuation allowance			741.9				671.1
Net deferred tax (assets) liabilities			$	179.2			$	(3.9	)
Balance sheet presentation:
Deferred income taxes			$	1,318.1			$	1,215.5
Other assets-miscellaneous			(1,138.9		)		(1,219.4		)
Net deferred tax (assets) liabilities			$	179.2			$	(3.9	)

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:

	2019			2018			2017
Statutory U.S. federal income tax rate	21.0	%		21.0	%		35.0	%
State income taxes, net of related federal income tax benefit	1.8			1.8			1.2
Foreign income taxed at different rates	1.6			1.5			(4.6	)
Transition tax	—			1.0			13.7
US net deferred tax liability remeasurement	—			—			(6.0	)
Foreign tax credit redetermination regulations	(1.0	)		—			—
Other, net	1.5			(1.1	)		0.1
Effective income tax rates	24.9	%		24.2	%		39.4	%

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	2019				2018
Balance at January 1	$	1,342.8			$	1,180.4
Decreases for positions taken in prior years	(18.3		)		(64.1		)
Increases for positions taken in prior years	107.1				180.8
Increases for positions related to the current year	88.3				75.1
Settlements with taxing authorities	(68.6		)		(24.1		)
Lapsing of statutes of limitations	(12.2		)		(5.3		)
Balance at December 31(1)	$	1,439.1			$	1,342.8

(1)

Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018, respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet.

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