
	2020		2019		2018
Current provision:
Federal	$	81	$	53	$	169
State	50		46		50
Foreign	176		116		105
Total current provision	$	307	$	215	$	324
Deferred provision (benefit):
Federal	$	(53)	$	(47)	$	(95)
State	(28)		7		(11)
Foreign	(130)		(75)		(10)
Total deferred provision (benefit)	(211)		(115)		(116)
Total Provision (benefit) for income taxes	$	96	$	100	$	208


	2020		2019		2018
Tax expense (benefit) per statement of earnings	$	96	$	100	$	208
Tax expense (benefit) attributable to discontinued operations	—		—		(1)
Unrealized (loss) gain on foreign currency translation	(154)		240		—
Unrealized gain (loss) on interest rate swaps	(7)		(41)		—
Other components of other comprehensive earnings (loss)	—		(3)		1
Total income tax expense (benefit) allocated to other comprehensive income	(161)		196		1
Total income tax expense (benefit)	$	(65)	$	296	$	208


	2020		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes	14.6		2.5		2.9
Federal benefit of state taxes	(3.1)		(0.5)		(0.6)
Foreign rate differential	(10.1)		(1.7)		—
U.K. tax rate adjustment	38.2		—		—
Tax benefit from stock-based compensation	(18.1)		(8.1)		(5.2)
Acquisition-related items	(15.9)		1.8		—
Book basis in excess of tax basis for goodwill impairment and disposition	9.2		—		3.0
Non-deductible executive compensation	9.0		10.6		0.4
CVR liability fair value and foreign currency adjustment	8.2		0.7		—
Foreign-derived intangible income deduction	(7.2)		(3.3)		(1.8)
Return to provision adjustments	(4.9)		(0.4)		(0.3)
Research and development credit	(4.1)		(2.4)		(0.9)
State tax rate adjustment	(2.8)		5.1		—
Cares Act net operating loss adjustment	(2.3)		—		—
Withholding tax on distribution	2.1		—		(0.4)
Deferred tax and other rate adjustments	1.1		0.2		—
Unrecognized tax benefits	0.3		(1.4)		(0.3)
Global intangible low-tax income	—		—		1.1
Other	0.8		0.1		(0.1)
Effective income tax rate	36.0	%	24.2	%	18.8	%


	2020		2019
Deferred income tax assets:
Net operating loss carryforwards	$	221	$	177
Employee benefit accruals	155		177
Other deferred tax assets	204		142
Total gross deferred income tax assets	580		496
Less valuation allowance	(204)		(178)
Total deferred income tax assets	376		318
Deferred income tax liabilities:
Amortization of goodwill and intangible assets	(3,945)		(4,123)
Foreign currency translation adjustment	(95)		(208)
Deferred contract costs	(173)		(125)
Other deferred tax liabilities	(140)		(105)
Total deferred income tax liabilities	(4,353)		(4,561)
Net deferred income tax liability	$	(3,977)	$	(4,243)


	2020		2019
Noncurrent assets (included in Other noncurrent assets)	$	40	$	38
Total deferred income tax assets	40		38
Noncurrent liabilities	(4,017)		(4,281)
Total deferred income tax liabilities	(4,017)		(4,281)
Net deferred income tax liability	$	(3,977)	$	(4,243)

We believe that based on our historical pattern of taxable income, projections of future income, tax planning strategies and other relevant evidence, the Company will produce sufficient income in the future to realize its deferred income tax assets (net of valuation allowance). A valuation allowance is established for any portion of a deferred income tax asset for which we believe it is more likely than not that the Company will not be able to realize the benefits of all or a portion of that deferred income tax asset. We also receive periodic assessments from taxing authorities challenging our positions; these assessments must be taken into consideration in determining our tax accruals. Resolving these assessments, which may or may not result in additional taxes due, may require an extended period of time. Adjustments to the valuation allowance will be made if there is a change in our assessment of the amount of deferred income tax asset that is realizable.

As of December 31, 2020 and 2019, the Company had net income taxes receivable of $147 million and $174 million, respectively. These amounts are included in Other receivables in the consolidated balance sheets.

As of December 31, 2020 and 2019, the Company has federal, state and foreign net operating loss carryforwards resulting in deferred tax assets of $221 million and $177 million, respectively. The federal and state net operating losses result in deferred tax assets as of December 31, 2020 and 2019, of $90 million and $68 million, respectively, which expire between 2022 and 2040. The Company has a valuation allowance related to these deferred tax assets for net operating loss carryforwards in the amounts of $48 million and $48 million as of December 31, 2020 and 2019. The Company has foreign net operating loss carryforwards resulting in deferred tax assets as of December 31, 2020 and 2019, of $131 million and $110 million, respectively. The Company has a full valuation allowance against the foreign net operating losses as of December 31, 2020 and 2019.

The Company participates in the IRS' Compliance Assurance Process ("CAP"), which is a real-time continuous audit. The IRS has completed its review for years through 2017. Currently, we believe the ultimate resolution of the IRS examinations will not result in a material adverse effect to the Company's financial position or results of operations. Substantially all material foreign income tax return matters have been concluded through 2013. Substantially all state income tax returns have been concluded through 2013.

As of December 31, 2020 and 2019, the Company had gross unrecognized tax benefits of $44 million and $45 million of which $38 million and $38 million, respectively, would favorably impact our income tax rate in the event that the unrecognized tax benefits are recognized.


	Gross Amount
Amounts of unrecognized tax benefits 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
Amount of decreases due to lapse of the applicable statute of limitations	(1)
Amount of decreases due to settlements	(9)
Increases as a result of tax positions taken in the current period	9
Amount of unrecognized tax benefit as of December 31, 2020	$	44

The total amount of interest expense recognized in the consolidated statements of earnings for unpaid taxes is $3 million, $3 million and $4 million for the years ended December 31, 2020, 2019 and 2018, respectively. The total amount of interest and penalties included in the consolidated balance sheets is $15 million and $19 million as of December 31, 2020 and 2019, respectively. Interest and penalties are recorded as a component of income tax expense in the consolidated statements of earnings.