INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Components of the Company’s income tax provision are as follows:


	Year Ended December 31,
	2019		2018		2017
Current:
Federal	$	179	$	168	$	454
State and Local	59		50		30
Non-U.S.	181		233		207
Total current	419		451		691
Deferred:
Federal	(19)		(59)		156
State and Local	(3)		(2)		17
Non-U.S.	(16)		(38)		(85)
Total deferred	(38)		(99)		88
Total provision for income taxes	$	381	$	352	$	779

Reconciliation of United States Federal Statutory Tax Rate to Effective Tax Rate on Income before Provision for Income Taxes

A reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate on income before provision for income taxes is as follows:


	Year Ended December 31,
	2019			2018			2017
U.S. statutory tax rate	21.0		%	21.0		%	35.0		%
State and local taxes, net of federal tax benefit	2.2		%	2.2		%	1.9		%
Benefit of foreign operations	(0.1)		%	1.8		%	(9.9)		%


U.S. Tax Act impact	—		%	(2.8)		%	17.0		%
Other	(2.1)		%	(1.1)		%	(0.4)		%
Effective tax rate	21.0		%	21.1		%	43.6		%
Income tax paid	$	458		$	442		$	366

Source of Income before Provision for Income Taxes

The source of income before provision for income taxes is as follows:


	Year Ended December 31,
	2019		2018		2017
U.S.	$	1,039	$	936	$	1,099
Non-U.S.	771		736		688
Income before provision for income taxes	$	1,810	$	1,672	$	1,787

Components of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows:


	December 31,
	2019		2018
Deferred tax assets:
Account receivable allowances	$	6	$	6
Accumulated depreciation and amortization	1		1
Stock-based compensation	46		46
Accrued compensation and benefits	89		75
Operating lease liabilities	136		—
Deferred rent	—		22
Deferred revenue	37		41
Net operating loss	13		16
Restructuring	4		5
Uncertain tax positions	94		81
Self-insured related reserves	8		8

Other	13		14
Total deferred tax assets	447		315
Deferred tax liabilities:
Accumulated depreciation and amortization of intangible assets and capitalized software	(389)		(395)
ROU Assets	(107)		—
Capital gains	(23)		(24)
Self-insured related income	(8)		(8)
Stock based compensation	(2)		(2)
New revenue accounting standard - ASC 606	(12)		(19)

Unrealized gain on net investment hedges - OCI	(22)		(10)
Other liabilities	(3)		(7)
Total deferred tax liabilities	(566)		(465)
Net deferred tax liabilities	(119)		(150)
Valuation allowance	(9)		(5)
Total net deferred tax liabilities	$	(128)	$	(155)

Reconciliation of Uncertain Tax Positions

A reconciliation of the beginning and ending amount of UTPs is as follows:


	Year Ended December 31,
	2019		2018		2017
Balance as of January 1	$	495	$	389	$	200
Additions for tax positions related to the current year	35		80		86
Additions for tax positions of prior years	22		89		120
Reductions for tax positions of prior years	(2)		(13)		(4)
Settlements with taxing authorities	(1)		(2)		(2)
Lapse of statute of limitations	(44)		(48)		(11)
Reclassification to indemnification liability related to MAKS divestiture	(28)		—		—
Balance as of December 31	$	477	$	495	$	389