XML 32 R22.htm IDEA: XBRL DOCUMENT v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s income tax provision and effective income tax rate were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(In millions)2022202120222021
Income tax provision$137 $228 $235 $246 
Effective income tax rate22.2 %48.5 %18.2 %31.1 %
The income tax provision as a percentage of income before income taxes and income from investments in unconsolidated affiliates was 22.2% and 48.5% for the three months ended June 30, 2022 and 2021, respectively, and was 18.2% and 31.1% for the six months ended June 20, 2022 and 2021, respectively.
The effective income tax rate for the three months ended June 30, 2021 included $134 million of income tax expense attributed to the revaluation of certain net deferred tax liabilities, primarily related to intangible assets and investments in joint ventures recognized at fair value in connection with the acquisition of First Data, reflecting the effect of enacted corporate income tax rate changes in the United Kingdom (tax rate increase from 19% to 25% starting in 2023) and Argentina (tax rate increase from 25% to 35%), partially offset by decreases in uncertain tax positions.
The effective income tax rate for each of the six months ended June 30, 2022 and 2021 includes discrete tax benefits from subsidiary restructurings and equity compensation related tax benefits. The effective income tax rate for the six months ended June 30, 2021 also included the impact of the revaluation of certain net deferred tax liabilities described above.
The Company’s potential liability for unrecognized tax benefits before interest and penalties was approximately $110 million at June 30, 2022. The Company believes it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $6 million over the next twelve months as a result of possible closure of tax audits, potential audit settlements, and the lapse of the statutes of limitation in various jurisdictions.
As of June 30, 2022, the Company’s U.S. federal income tax return for 2021, and tax returns in certain states and foreign jurisdictions for 2013 through 2021, remain subject to examination by taxing authorities.