INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

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


	Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	213	$	179	$	168
State and Local	68		59		50
Non-U.S.	215		181		233
Total current	496		419		451
Deferred:
Federal	6		(19)		(59)
State and Local	—		(3)		(2)
Non-U.S.	(50)		(16)		(38)
Total deferred	(44)		(38)		(99)
Total provision for income taxes	$	452	$	381	$	352

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,
	2020			2019			2018
U.S. statutory tax rate	21.0		%	21.0		%	21.0		%
State and local taxes, net of federal tax benefit	2.3		%	2.2		%	2.2		%
Benefit of foreign operations	(1.5)		%	(0.1)		%	1.8		%


U.S. Tax Act impact	—		%	—		%	(2.8)		%
Other	(1.5)		%	(2.1)		%	(1.1)		%
Effective tax rate	20.3		%	21.0		%	21.1		%
Income tax paid	$	514		$	458		$	442

Source of Income before Provision for Income Taxes

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


	Year Ended December 31,
	2020		2019		2018
U.S.	$	1,349	$	1,039	$	936
Non-U.S.	880		771		736
Income before provision for income taxes	$	2,229	$	1,810	$	1,672

Components of Deferred Tax Assets and Liabilities

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


	December 31,
	2020		2019
Deferred tax assets:
Account receivable allowances	$	9	$	6
Accumulated depreciation and amortization	2		1
Stock-based compensation	42		46
Accrued compensation and benefits	99		89
Capitalized costs	39		—
Operating lease liabilities	122		136
Deferred revenue	30		37
Net operating loss	17		13
Restructuring	3		4
Uncertain tax positions	98		94
Self-insured related reserves	10		8
Loss on net investment hedges - OCI	93		—
Other	10		13
Total deferred tax assets	574		447
Deferred tax liabilities:
Accumulated depreciation and amortization of intangible assets and capitalized software	(468)		(389)
ROU Assets	(90)		(107)
Capital Gains	(23)		(23)
Self-insured related income	(10)		(8)
Stock-based compensation	—		(2)
Revenue Accounting Standard - ASC 606	(10)		(12)
Deferred tax on unremitted foreign earnings	(16)		—
Gain on net investment hedges - OCI	(8)		(22)
Other	(4)		(3)
Total deferred tax liabilities	(629)		(566)
Net deferred tax liabilities	(55)		(119)
Valuation allowance	(15)		(9)
Total net deferred tax liabilities	$	(70)	$	(128)

Reconciliation of Uncertain Tax Positions

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


	Year Ended December 31,
	2020		2019		2018
Balance as of January 1	$	477	$	495	$	389
Additions for tax positions related to the current year	37		35		80
Additions for tax positions of prior years	17		22		89
Reductions for tax positions of prior years	(2)		(2)		(13)
Settlements with taxing authorities	(5)		(1)		(2)
Lapse of statute of limitations	(41)		(44)		(48)
Reclassification to indemnification liability related to MAKS divestiture	—		(28)		—
Balance as of December 31	$	483	$	477	$	495