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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of pretax income and income tax provision (benefit) for continuing operations

Substantially all of the Company’s pre-tax earnings are derived from domestic operations in all periods presented. The income tax provision (benefit) for continuing operations was as follows for the years ended December 31:

(In millions)	2019				2018				2017
Components of income tax provision (benefit):
Current:
Federal	$	25			$	189			$	342
State	69				39				44
Foreign	57				17				19
	151				245				405
Deferred:
Federal	118				110				(250		)
State	(18		)		24				3
Foreign	(53		)		(1		)		—
	47				133				(247		)
Income tax provision (benefit)	$	198			$	378			$	158

Reconciliation of statutory federal income tax rate to effective income tax rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for continuing operations is as follows for the years ended December 31:

	2019			2018			2017
Statutory federal income tax rate	21.0	%		21.0	%		35.0	%
State income taxes, net of federal effect	3.7	%		3.2	%		2.3	%
Unconsolidated affiliates tax	0.6	%		0.1	%		0.9	%
Tax expense (benefit) due to federal tax reform	—	%		1.2	%		(20.3	)%
Excess tax benefit from share-based awards	(5.1	)%		(2.2	)%		(3.6	)%
Sale of businesses	(2.6	)%		1.3	%		—	%
Domestic production activities deduction	—	%		—	%		(2.0	)%
Other, net	0.7	%		(0.3	)%		(0.7	)%
Effective income tax rate	18.3	%		24.3	%		11.6	%

Schedule of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities consisted of the following at December 31:

(In millions)	2019				2018
Accrued expenses	$	303			$	74
Interest rate hedge contracts	34				5
Share-based compensation	216				43
Net operating loss and credit carry-forwards	1,444				131
Foreign tax credits on undistributed earnings	289				—
Leasing liabilities	219				—
Other	31				25
Subtotal	2,536				278
Valuation allowance	(1,145		)		(101		)
Total deferred tax assets	1,391				177
Capitalized software development costs	(622		)		(129		)
Intangible assets	(3,297		)		(437		)
Property and equipment	(143		)		(66		)
Capitalized commissions	(86		)		(80		)
Investments in joint ventures	(841		)		(78		)
Leasing right-of-use assets	(205		)		—
Other	(332		)		(112		)
Total deferred tax liabilities	(5,526		)		(902		)
Total	$	(4,135	)		$	(725	)

Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31:

(In millions)	2019				2018
Noncurrent assets	$	112			$	20
Noncurrent liabilities	(4,247		)		(745		)
Total	$	(4,135	)		$	(725	)

Schedule of operating loss carryforwards and general business credit carryforwards

The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31:

(In millions)	2019				2018
Net operating loss carryforwards: (1)
Federal	$	1,674			$	27
State	4,636				479
Foreign	3,201				465
General business credit carryforwards (2)	57				—

⁽¹⁾  At December 31, 2019, the Company had federal net operating loss carryforwards of $1.7 billion, which expire in 2020 through 2037, state net operating loss carryforwards of $4.6 billion, which expire in 2021 through 2039, and foreign net operating loss carryforwards of $3.2 billion, of which $209 million expire in 2020 through 2039, and the remainder of which do not expire.

⁽²⁾ 

At December 31, 2019, the Company had general business credit carryforwards of $57 million which expire in 2027 through 2039.

Schedule of operating loss carryforwards and general business credit carryforwards

The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31:

(In millions)	2019				2018
Net operating loss carryforwards: (1)
Federal	$	1,674			$	27
State	4,636				479
Foreign	3,201				465
General business credit carryforwards (2)	57				—

⁽¹⁾  At December 31, 2019, the Company had federal net operating loss carryforwards of $1.7 billion, which expire in 2020 through 2037, state net operating loss carryforwards of $4.6 billion, which expire in 2021 through 2039, and foreign net operating loss carryforwards of $3.2 billion, of which $209 million expire in 2020 through 2039, and the remainder of which do not expire.

⁽²⁾ 

At December 31, 2019, the Company had general business credit carryforwards of $57 million which expire in 2027 through 2039.

Schedule of unrecognized tax benefits

Unrecognized tax benefits were as follows at December 31:

(In millions)	2019				2018				2017
Unrecognized tax benefits - Beginning of year	$	49			$	42			$	45
Increases for assumed tax positions related to First Data	82				—				—
Increases for tax positions taken during the current year	8				3				11
Increases for tax positions taken in prior years	16				20				2
Decreases for tax positions taken in prior years	(2		)		(8		)		(15		)
Decreases for settlements	(1		)		—				(1		)
Lapse of the statute of limitations	(7		)		(8		)		—
Unrecognized tax benefits - End of year	$	145			$	49			$	42

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