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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

Total income tax expense for the years ended December 31, 2018, 2017 and 2016 is allocated as follows (in millions):

	2018				2017				2016
Tax expense (benefit) per statement of earnings	$	208			$	(321	)		$	291
Tax expense (benefit) attributable to discontinued operations	(1		)		—				1
Unrealized (loss) gain on foreign currency translation	—				—				30
Other components of other comprehensive income	1				(11		)		1
Total income tax expense (benefit) allocated to other comprehensive income	1				(11		)		31
Tax benefit from exercise of stock options	—				—				(32		)
Total income tax expense (benefit)	$	208			$	(332	)		$	291

Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2018, 2017 and 2016 consists of the following (in millions):

	2018				2017				2016
Current provision:
Federal	$	169			$	476			$	308
State	50				81				54
Foreign	105				127				131
Total current provision	$	324			$	684			$	493
Deferred provision (benefit):
Federal	$	(95	)		$	(979	)		$	(171	)
State	(11		)		(24		)		(14		)
Foreign	(10		)		(2		)		(17		)
Total deferred provision	(116		)		(1,005		)		(202		)
Total provision for income taxes	$	208			$	(321	)		$	291

Schedule of Pre-tax Income from Continuing Operations

The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2018, 2017 and 2016 (in millions):

	2018				2017				2016
United States	$	744			$	530			$	503
Foreign	360				446				334
Total	$	1,104			$	976			$	837

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018, 2017 and 2016 is as follows:

	2018			2017			2016
Federal statutory income tax rate	21.0	%		35.0	%		35.0	%
State income taxes	3.0			2.4			2.9
Federal benefit of state taxes	(0.6	)		(0.8	)		(1.0	)
Foreign rate differential	—			(5.1	)		(3.1	)
Tax benefit from stock-based compensation	(5.2	)		(6.7	)		—
Book basis in excess of tax basis for dispositions	3.0			18.5			—
Tax Cuts and Jobs Act of 2017	—			(73.1	)		—
Foreign-derived intangible income deduction	(1.8	)		—			—
Other	(0.6	)		(3.1	)		1.0
Effective income tax rate	18.8	%		(32.9	)%		34.8	%

Schedule of Deferred Income Tax Assets and Liabilities

The significant components of deferred income tax assets and liabilities as of December 31, 2018 and 2017 consist of the following (in millions):

	2018				2017
Deferred income tax assets:
Net operating loss carryforwards	$	108			$	130
Employee benefit accruals	58				69
Other deferred tax assets	105				128
Total gross deferred income tax assets	271				327
Less valuation allowance	(116		)		(129		)
Total deferred income tax assets	155				198
Deferred income tax liabilities:
Amortization of goodwill and intangible assets	1,291				1,452
Deferred contract costs	109				94
Other deferred tax liabilities	83				90
Total deferred income tax liabilities	1,483				1,636
Net deferred income tax liability	$	1,328			$	1,438

Deferred income taxes are classified in the Consolidated Balance Sheets as of December 31, 2018 and 2017 as follows (in millions):

	2018				2017
Noncurrent assets (included in other noncurrent assets)	$	32			$	30
Total deferred income tax assets	32				30
Noncurrent liabilities	(1,360		)		(1,468		)
Total deferred income tax liabilities	(1,360		)		(1,468		)
Net deferred income tax liability	$	(1,328	)		$	(1,438	)

Schedule of Unrecognized Tax Benefits Roll Forward

The following table reconciles the gross amounts of unrecognized tax benefits at the beginning and end of the period (in millions):

	Gross Amount
Amounts of unrecognized tax benefits as of January 1, 2017	$	87
Amount of decreases due to lapse of the applicable statute of limitations	(12		)
Amount of decreases due to settlements	(19		)
Increases as a result of tax positions taken in the current period	5
Increases as a result of tax positions taken in a prior period	14
Amount of unrecognized tax benefit as of December 31, 2017	75
Amount of decreases due to lapse of the applicable statute of limitations	(4		)
Amount of decreases due to settlements	(12		)
Increases as a result of tax positions taken in the current period	1
Increases as a result of tax positions taken in a prior period	1
Amount of unrecognized tax benefit as of December 31, 2018	$	61

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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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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