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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Substantially all of the Company’s pre-tax earnings are derived from domestic operations in all periods presented. A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows:
| 2018 |  | 2017 |  | 2016
Statutory federal income tax rate | 21.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal effect | 3.2 | % |  | 2.3 | % |  | 2.9 | %
Unconsolidated affiliate tax | 0.1 | % |  | 0.9 | % |  | 4.2 | %
Tax expense (benefit) due to federal tax reform | 1.2 | % |  | (20.3 | )% |  | — | %
Excess tax benefit from share-based awards | (2.2 | )% |  | (3.6 | )% |  | — | %
Sale of business | 1.3 | % |  | — | % |  | — | %
Domestic production activities deduction | — | % |  | (2.0 | )% |  | (3.0 | )%
Other, net | (0.3 | )% |  | (0.7 | )% |  | (0.5 | )%
Effective income tax rate | 24.3 | % |  | 11.6 | % |  | 38.6 | %
The income tax provision (benefit) for continuing operations was as follows:
(In millions) | 2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 189 |  |  | $ | 342 |  |  | $ | 402 |
State | 39 |  |  | 44 |  |  | 53 |
Foreign | 17 |  |  | 19 |  |  | 16 |
| 245 |  |  | 405 |  |  | 471 |
Deferred: |  |  |  |  |
Federal | 110 |  |  | (250 | ) |  | 21 |
State | 24 |  |  | 3 |  |  | 5 |
Foreign | (1 | ) |  | — |  |  | (5 | )
| 133 |  |  | (247 | ) |  | 21 |
Income tax provision | $ | 378 |  |  | $ | 158 |  |  | $ | 492 |
Significant components of deferred tax assets and liabilities consisted of the following at December 31:
(In millions) | 2018 |  | 2017
Accrued expenses | $ | 74 |  |  | $ | 39 |
Interest rate hedge contracts | 5 |  |  | 9 |
Share-based compensation | 43 |  |  | 40 |
Net operating loss and credit carry-forwards | 131 |  |  | 131 |
Deferred revenue | 11 |  |  | 17 |
Other | 14 |  |  | 7 |
Subtotal | 278 |  |  | 243 |
Valuation allowance | (101 | ) |  | (103 | )
Total deferred tax assets | 177 |  |  | 140 |
Capitalized software development costs | (129 | ) |  | (117 | )
Intangible assets | (437 | ) |  | (455 | )
Property and equipment | (66 | ) |  | (49 | )
Capitalized commissions | (80 | ) |  | — |
Investment in joint ventures | (78 | ) |  | — |
Other | (112 | ) |  | (48 | )
Total deferred tax liabilities | (902 | ) |  | (669 | )
Total | $ | (725 | ) |  | $ | (529 | )
The valuation allowance decreased by $2 million, from $103 million at December 31, 2017 to $101 million at December 31, 2018. Of the decrease in 2018, $1 million was recorded to the income tax provision. Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31:
(In millions) | 2018 |  | 2017
Noncurrent assets | $ | 20 |  |  | $ | 23 |
Noncurrent liabilities | (745 | ) |  | (552 | )
Total | $ | (725 | ) |  | $ | (529 | )
Noncurrent deferred tax assets are included in other long-term assets at December 31, 2018 and 2017. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act made broad changes to the U.S. tax code, including, but not limited to, (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent beginning in 2018; (2) requiring companies to pay a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring U.S. federal taxable income to include certain earnings of controlled foreign corporations; and (5) creating a new limitation on deductible interest expense. The Company recorded a provisional income tax benefit totaling $275 million in 2017 related to the reduction of the U.S. federal corporate tax rate and other provisions of the Tax Act. The Internal Revenue Service issued new guidance with respect to the treatment of foreign tax credits in 2018 affecting the computation of the Company’s 2017 federal income tax liability. As a result of this new guidance and additional analysis of the impact of the Tax Act, the Company revised its prior estimates and recorded $19 million of tax expense related to the Tax Act during 2018. Accordingly, any and all provisional amounts previously recorded in accordance with the Tax Act have been adjusted to reflect their final amounts. The Company has analyzed its global working capital and cash requirements and the potential tax liabilities attributable to repatriation of earnings, and has determined not to change its prior assertion. Accordingly, the Company has not recorded any deferred taxes attributable to investments in foreign subsidiaries for which it is permanently reinvested. Unrecognized tax benefits were as follows:
(In millions) | 2018 |  | 2017 |  | 2016
Unrecognized tax benefits - Beginning of year | $ | 42 |  |  | $ | 45 |  |  | $ | 54 |
Increases for tax positions taken during the current year | 3 |  |  | 11 |  |  | 9 |
Increases for tax positions taken in prior years | 20 |  |  | 2 |  |  | 1 |
Decreases for tax positions taken in prior years | (8 | ) |  | (15 | ) |  | (15 | )
Decreases for settlements | — |  |  | (1 | ) |  | (2 | )
Lapse of the statute of limitations | (8 | ) |  | — |  |  | (2 | )
Unrecognized tax benefits - End of year | $ | 49 |  |  | $ | 42 |  |  | $ | 45 |
At December 31, 2018, unrecognized tax benefits of $35 million, net of federal and state benefits, would affect the effective income tax rate from continuing operations if recognized. In 2019, reductions to unrecognized tax benefits for decreases in tax positions taken in prior years, settlements and the lapse of statutes of limitations are estimated to total approximately $3 million. The Company classifies interest expense and penalties related to income taxes as components of its income tax provision. The income tax provision from continuing operations included interest expense and penalties on unrecognized tax benefits of $1 million in 2018, and less than $1 million in each of 2017 and 2016. Accrued interest expense and penalties related to unrecognized tax benefits totaled $4 million and $3 million at December 31, 2018 and 2017, respectively. The Company’s federal tax returns for 2016 through 2018, and tax returns in certain states and foreign jurisdictions for 2005 through 2018 remain subject to examination by taxing authorities. At December 31, 2018, the Company had federal net operating loss carry-forwards of $27 million, which expire in 2019 through 2036, state net operating loss carry-forwards of $479 million, which expire in 2019 through 2038, and foreign net operating loss carry-forwards of $465 million, $42 million of which expire in 2027 through 2038, and the remainder of which do not expire.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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