Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The components of pretax income for the years ended December 31, 2020, 2019 and 2018 are as follows (in millions):

	Year Ended December 31,
	2020		2019		2018
United States	$	1,163	$	177	$	144
International	2,257		1,572		2,105
	$	3,420	$	1,749	$	2,249

Schedule of components of income tax expense (benefit)

The provision (benefit) for income taxes is comprised of the following (in millions):

	Year Ended December 31,
	2020		2019		2018
Current:
Federal	$	252	$	35	$	34
State and local	87		23		22
Foreign	131		180		169
	$	470	$	238	$	225
Deferred:
Federal	$	(73)	$	(149)	$	(458)
State and local	(8)		(44)		(10)
Foreign	489		188		364
	408		(5)		(104)
	$	878	$	233	$	121

Schedule of effective income tax rate reconciliation

The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 21% to income before income taxes (in millions):

	Year Ended December 31,
	2020		2019		2018
Provision at statutory rate	$	718	$	367	$	472
Foreign income taxed at different rates	21		16		(30)
Other taxes on foreign operations	19		(33)		24
Stock-based compensation	(1)		(1)		5
State taxes, net of federal benefit	80		(24)		8
Research and other tax credits	(28)		(29)		(26)
Impact of tax rate change	43		(21)		108
U.S. tax reform	—		—		(429)
Effective settlement of audits	—		(69)		—
Other	26		27		(11)
	$	878	$	233	$	121

Schedule of deferred tax assets and liabilities

Significant deferred tax assets and liabilities consist of the following (in millions):

	As of December 31,
	2020		2019
Deferred tax assets:
Net operating loss, capital loss and credits	$	174	$	124
Accruals and allowances	427		220
Stock-based compensation	10		14
Amortizable tax basis in intangibles	3,470		3,916
Net deferred tax assets	4,081		4,274
Valuation allowance	(149)		(96)
	$	3,932	$	4,178
Deferred tax liabilities:
Unremitted foreign earnings	$	(2,177)	$	(2,328)
Acquisition-related intangibles	(36)		(31)
Depreciation and amortization	(237)		(131)
Net unrealized gain on investments	(306)		(63)
	(2,756)		(2,553)
	$	1,176	$	1,625

Changes in unrecognized tax benefits

The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018 (in millions):

	2020		2019		2018
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	387	$	544	$	487
Increases related to prior period tax positions	30		37		62
Decreases related to prior period tax positions	(15)		(114)		(10)
Increases related to current period tax positions	39		28		23
Settlements	(21)		(108)		(18)
Gross amounts of unrecognized tax benefits as of the end of the period	$	420	$	387	$	544