XML 44 R25.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense (benefit) attributable to continuing operations for the years ended December 31, 2023, 2022 and 2021, consists of the following (in millions):
| 2023 |  | 2022 |  | 2021
Current provision (benefit): |  |  |  |  |
Federal | $ | 235 |  |  | $ | 467 |  |  | $ | 196 |
State | 96 |  |  | 132 |  |  | 54 |
Foreign | 96 |  |  | 84 |  |  | 87 |
Total current provision | $ | 427 |  |  | $ | 683 |  |  | $ | 337 |
Deferred provision (benefit): |  |  |  |  |
Federal | $ | (193) |  |  | $ | (319) |  |  | $ | (113) |
State | (73) |  |  | (54) |  |  | (12) |
Foreign | (4) |  |  | 15 |  |  | 191 |
Total deferred provision | (270) |  |  | (358) |  |  | 66 |
Total provision for income taxes | $ | 157 |  |  | $ | 325 |  |  | $ | 403 |
The provision for income taxes is based on pre-tax income from continuing operations, which is as follows for the years ended December 31, 2023, 2022 and 2021 (in millions):
| 2023 |  | 2022 |  | 2021
United States | $ | 331 |  |  | $ | 761 |  |  | $ | 537 |
Foreign | 332 |  |  | 180 |  |  | 182 |
Total | $ | 663 |  |  | $ | 941 |  |  | $ | 719 |
Total income tax expense (benefit) attributable to continuing and discontinued operations for the years ended December 31, 2023, 2022 and 2021, is allocated as follows (in millions):
| 2023 |  | 2022 |  | 2021
Tax expense (benefit) per statements of earnings (loss) | $ | 157 |  |  | $ | 325 |  |  | $ | 403 |
Tax expense (benefit) on income from discontinued operations | (301) |  |  | 52 |  |  | (32) |
Change in fair value of net investment hedges | (176) |  |  | 361 |  |  | 317 |
Foreign currency translation adjustments | 40 |  |  | (360) |  |  | (33) |
Other components of other comprehensive earnings (loss) | 20 |  |  | 3 |  |  | — |
Total income tax expense (benefit) allocated to other comprehensive earnings | (116) |  |  | 4 |  |  | 284 |
Total income tax expense (benefit) | $ | (260) |  |  | $ | 381 |  |  | $ | 655 |
A reconciliation of the federal statutory income tax rate to the Company's effective income tax rate for the years ended December 31, 2023, 2022 and 2021, is as follows:
| 2023 |  | 2022 |  | 2021
Federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes | 5.7 |  |  | 6.0 |  |  | 5.4 |
Federal benefit of state taxes | (1.0) |  |  | (1.3) |  |  | (1.1) |
Foreign rate differential | 0.8 |  |  | 2.0 |  |  | 1.2 |
Withholding on actual and estimated remittances | 2.4 |  |  | 1.2 |  |  | 3.2 |
Tax loss (benefit) from stock-based compensation | 2.3 |  |  | 4.0 |  |  | (2.4) |
U.K. tax rate adjustment | (0.1) |  |  | 0.3 |  |  | 25.8 |
Non-deductible executive compensation | 0.6 |  |  | 0.3 |  |  | 3.7 |
Foreign-derived intangible income deduction | (3.4) |  |  | (1.1) |  |  | 0.4 |
Research and development credit | (1.8) |  |  | — |  |  | (1.2) |
Unrecognized tax benefits | (0.4) |  |  | (0.4) |  |  | 1.1 |
Return to provision | (1.7) |  |  | — |  |  | (0.3) |
Other | (0.6) |  |  | 2.5 |  |  | (0.8) |
Effective income tax rate | 23.8 | % |  | 34.5 | % |  | 56.0 | %
The significant components of deferred income tax assets and liabilities as of December 31, 2023 and 2022, consist of the following (in millions):
| 2023 |  | 2022
Deferred income tax assets: |  |  |
Net operating loss carryforwards | $ | 219 |  |  | $ | 196 |
Employee benefit accruals | 105 |  |  | 103 |
Outside basis difference | 919 |  |  | 38 |
Other deferred tax assets | 95 |  |  | 105 |
Total gross deferred income tax assets | 1,338 |  |  | 442 |
Less valuation allowance | (1,055) |  |  | (218) |
Total deferred income tax assets | 283 |  |  | 224 |
Deferred income tax liabilities: |  |  |
Amortization of goodwill and intangible assets | (2,066) |  |  | (2,363) |
Deferred contract costs | (245) |  |  | (209) |
Other deferred tax liabilities | (121) |  |  | (308) |
Total deferred income tax liabilities | (2,432) |  |  | (2,880) |
Net deferred income tax liability | $ | (2,149) |  |  | $ | (2,656) |
Deferred income taxes are classified in the consolidated balance sheets as of December 31, 2023 and 2022, as follows (in millions):
| 2023 |  | 2022
Noncurrent deferred income tax assets (included in Other noncurrent assets) | $ | 30 |  |  | $ | 33 |
Noncurrent deferred income tax liabilities | (2,179) |  |  | (2,689) |
Net deferred income tax liability | $ | (2,149) |  |  | $ | (2,656) |
We believe that based on our historical pattern of taxable income, projections of future income, tax planning strategies as necessary 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, 2023 and 2022, the Company had, respectively, net income taxes payable of $17 million included in Accounts payable, accrued and other liabilities in the consolidated balance sheet and net income taxes receivable of $169 million included in Other receivables in the consolidated balance sheet. As of December 31, 2023 and 2022, the Company had federal, state and foreign net operating loss carryforwards resulting in deferred tax assets of $219 million and $196 million, respectively. The federal and state net operating losses result in deferred tax assets as of December 31, 2023 and 2022, of $72 million and $67 million, respectively, which expire between 2024 and 2042. The Company has a valuation allowance related to these deferred tax assets for net operating loss carryforwards in the amounts of $46 million and $41 million as of December 31, 2023 and 2022. The Company has foreign net operating loss carryforwards resulting in deferred tax assets as of December 31, 2023 and 2022, of $147 million and $129 million, respectively. The Company has a full valuation allowance against the foreign net operating losses as of December 31, 2023 and 2022. As a result of classifying the Worldpay Merchant Solutions disposal group as held for sale in the third quarter of 2023, in accordance with ASC 740, the Company recognized in Deferred income taxes on the consolidated balance sheet as of December 31, 2023, a deferred tax asset of $919 million related to the excess tax-over-book outside basis difference for Worldpay Merchant Solutions' investment in foreign subsidiaries, net of a valuation allowance of $829 million for the portion of the outside basis difference for which it is not more likely than not to recognize a tax benefit. The net deferred tax asset of $90 million represents the portion of future capital loss for which we have an available capital gain against which the loss can be utilized. The corresponding net tax benefit was recorded in discontinued operations. In accordance with the provisions of ASC 740, the net deferred tax asset at December 31, 2023, does not include the final estimated tax expense related to the closing of the Worldpay Sale, which will be computed by comparing the proceeds allocated to our investments in both U.S. and foreign subsidiaries against their respective tax bases. 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 2021. 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. Tax years that remain subject to examination by major foreign and state tax jurisdictions are 2017 and forward. As of December 31, 2023 and 2022, the Company had gross unrecognized tax benefits of $41 million and $48 million of which $38 million and $42 million, respectively, would favorably impact our income tax rate in the event that the unrecognized tax benefits are recognized. 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 December 31, 2021 | $ | 54 |
Amount of decreases due to lapse of the applicable statute of limitations | (1) |
Amount of decreases due to settlements | (13) |
Increases as a result of tax positions taken in the prior period | 5 |
Increases as a result of tax positions taken in the current period | 4 |
Foreign currency translation | (1) |
Amount of unrecognized tax benefit as of December 31, 2022 | 48 |
Amount of decreases due to lapse of the applicable statute of limitations | (5) |
Amount of decreases due to settlements | (8) |
Increases as a result of tax positions taken in prior period | 4 |
Increases as a result of tax positions taken in the current period | 2 |
Amount of unrecognized tax benefit as of December 31, 2023 | $ | 41 |
The total amount of interest expense recognized in the consolidated statements of earnings (loss) for unpaid taxes is $2 million, $3 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total amount of interest and penalties included in the consolidated balance sheets is $11 million and $14 million as of December 31, 2023 and 2022, respectively. Interest and penalties are recorded as a component of income tax expense in the consolidated statements of earnings (loss).

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration