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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2019, 2018 and 2017 consists of the following (in millions):

	2019				2018				2017
Current provision:
Federal	$	53			$	169			$	476
State	46				50				81
Foreign	116				105				127
Total current provision	$	215			$	324			$	684
Deferred provision (benefit):
Federal	$	(47	)		$	(95	)		$	(979	)
State	7				(11		)		(24		)
Foreign	(75		)		(10		)		(2		)
Total deferred provision (benefit)	(115		)		(116		)		(1,005		)
Total Provision (benefit) for income taxes	$	100			$	208			$	(321	)

Total income tax expense for the years ended December 31, 2019, 2018 and 2017 is allocated as follows (in millions):

	2019				2018				2017
Tax expense (benefit) per statement of earnings	$	100			$	208			$	(321	)
Tax expense (benefit) attributable to discontinued operations	—				(1		)		—
Unrealized (loss) gain on foreign currency translation	240				—				—
Unrealized gain (loss) on interest rate swaps	(41		)		—				—
Other components of other comprehensive earnings (loss)	(3		)		1				(11		)
Total income tax expense (benefit) allocated to other comprehensive income	196				1				(11		)
Total income tax expense (benefit)	$	296			$	208			$	(332	)

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, 2019, 2018 and 2017 (in millions):

	2019				2018				2017
United States	$	220			$	744			$	530
Foreign	193				360				446
Total	$	413			$	1,104			$	976

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, 2019, 2018 and 2017 is as follows:

	2019			2018			2017
Federal statutory income tax rate	21.0	%		21.0	%		35.0	%
State income taxes	2.5			3.0			2.4
Federal benefit of state taxes	(0.5	)		(0.6	)		(0.8	)
Foreign rate differential	(1.7	)		—			(5.1	)
Non-deductible executive compensation	10.6			—			—
Tax benefit from stock-based compensation	(8.1	)		(5.2	)		(6.7	)
State tax rate adjustment	5.1			—			—
Foreign-derived intangible income deduction	(3.3	)		(1.8	)		—
Research and development credit	(2.4	)		(0.9	)		(0.9	)
Unrecognized tax benefits	(1.4	)		(0.3	)		—
Book basis in excess of tax basis for dispositions	—			3.0			18.5
Tax Cuts and Jobs Act of 2017	—			—			(73.1	)
Other	2.4			0.6			(2.2	)
Effective income tax rate	24.2	%		18.8	%		(32.9	)%

Schedule of Deferred Income Tax Assets and Liabilities

The significant components of deferred income tax assets and liabilities as of December 31, 2019 and 2018 consist of the following (in millions):

	2019				2018
Deferred income tax assets:
Net operating loss carryforwards	$	177			$	108
Employee benefit accruals	177				58
Other deferred tax assets	142				105
Total gross deferred income tax assets	496				271
Less valuation allowance	(178		)		(116		)
Total deferred income tax assets	318				155
Deferred income tax liabilities:
Amortization of goodwill and intangible assets	(4,123		)		(1,291		)
Foreign currency translation adjustment	(208		)		—
Deferred contract costs	(125		)		(109		)
Other deferred tax liabilities	(105		)		(83		)
Total deferred income tax liabilities	(4,561		)		(1,483		)
Net deferred income tax liability	$	(4,243	)		$	(1,328	)

Deferred income taxes are classified in the Consolidated Balance Sheets as of December 31, 2019 and 2018 as follows (in millions):

	2019				2018
Noncurrent assets (included in Other noncurrent assets)	$	38			$	32
Total deferred income tax assets	38				32
Noncurrent liabilities	(4,281		)		(1,360		)
Total deferred income tax liabilities	(4,281		)		(1,360		)
Net deferred income tax liability	$	(4,243	)		$	(1,328	)

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, 2018	$	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
Amount of decreases due to lapse of the applicable statute of limitations	(5		)
Amount of decreases due to settlements	(17		)
Increases as a result of tax positions taken in the current period	1
Assumed in Worldpay acquisition	5
Amount of unrecognized tax benefit as of December 31, 2019	$	45

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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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