INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Provision for Income Taxes

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

	Year Ended December 31,
	2012			2011			2010
Current:
Federal	$	168.1		$	133.6		$	106.6
State and Local		33.7			28.1			22.1
Non-U.S.		86.4			89.8			82.9
Total current		288.2			251.5			211.6
Deferred:
Federal		35.7			9.3			(14.7	)
State and Local		4.5			7.0			10.6
Non-U.S.		(4.1	)		(6.0	)		(6.5	)
Total deferred		36.1			10.3			(10.6	)
Total provision for income taxes	$	324.3		$	261.8		$	201.0

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,
	2012			2011			2010
U.S. statutory tax rate		35.0	%		35.0	%		35.0	%
State and local taxes, net of federal tax benefit		2.4			2.7			2.9
Benefit of foreign operations		(6.1	)		(6.3	)		(9.7	)
Legacy tax items		(0.4	)		(0.2	)		(0.4	)
Other		0.8			—			0.3
Effective tax rate		31.7	%		31.2	%		28.1	%
Income tax paid	$	293.3	*	$	191.4		$	247.9

* Includes approximately $92 million in payments for tax audit settlements in the first quarter of 2012.

Source of income Before Provision for Income Taxes

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

	Year Ended December 31,
	2012		2011		2010
United States	$	694.2	$	469.1	$	390.6
International		329.8		370.7		323.8
Income before provision for income taxes	$	1,024.0	$	839.8	$	714.4

Components of Deferred Tax Assets and Liabilities

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

	Year Ended December 31,
	2012			2011
Deferred tax assets:
Current:
Account receivable allowances	$	8.2		$	8.0
Accrued compensation and benefits		13.3			12.3
Deferred revenue		6.1			5.8
Legal and professional fees		8.4			9.8
Restructuring		1.5			1.4
Uncertain tax positions		—			43.6
Other		3.1			3.4
Total current		40.6			84.3
Non-current:
Accumulated depreciation and amortization		0.4			1.3
Stock-based compensation		86.9			89.6
Benefit plans		96.6			82.7
Deferred rent and construction allowance		31.3			30.5
Deferred revenue		34.3			36.4
Foreign net operating loss (1)		13.0			9.7
Uncertain tax positions		25.9			21.2
Self-insured related reserves		33.8			23.0
Other		4.5			7.2
Total non-current		326.7			301.6
Total deferred tax assets		367.3			385.9
Deferred tax liabilities:
Current:
Other		(0.2	)		—
Total Current		(0.2	)		—
Non-current:
Accumulated depreciation and amortization of intangible assets and capitalized software		(154.7	)		(161.3	)
Foreign earnings to be repatriated		(4.7	)		(2.6	)
Self-insured related income		(39.7	)		(26.8	)
Other liabilities		(3.9	)		(2.4	)
Total non-current		(203.0	)		(193.1	)
Total deferred tax liabilities		(203.2	)		(193.1	)
Net deferred tax asset		164.1			192.8
Valuation allowance		(15.2	)		(13.9	)
Total net deferred tax assets	$	148.9		$	178.9

(1) Amounts are primarily set to expire beginning in 2017, if unused.

Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions

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

	Year Ended December 31,
	2012			2011			2010
Balance as of January 1	$	205.4		$	180.8		$	164.2
Additions for tax positions related to the current year		49.1			48.9			31.1
Additions for tax positions of prior years		18.9			15.3			16.2
Reductions for tax positions of prior years		(20.6	)		(27.3	)		(9.9	)
Settlements with taxing authorities		(91.5	)		(2.1	)		—
Lapse of statute of limitations		(4.7	)		(10.2	)		(20.8	)
Balance as of December 31	$	156.6		$	205.4		$	180.8