Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The following table presents the components of income from continuing operations before taxes for the periods indicated (in millions):

	Year Ended December 31,
	2021		2020		2019
United States	$	1,608	$	1,167	$	179
International	(1,210)		2,178		1,473
	$	398	$	3,345	$	1,652

Schedule of components of income tax expense (benefit)

The following table summarizes the income tax provision (benefit) for the periods indicated (in millions):

	Year Ended December 31,
	2021		2020		2019
Current:
Federal	$	472	$	266	$	48
State and local	128		87		23
Foreign	228		91		149
	$	828	$	444	$	220
Deferred:
Federal	$	(755)	$	(73)	$	(159)
State and local	(125)		(8)		(44)
Foreign	198		495		202
	(682)		414		(1)
	$	146	$	858	$	219

Schedule of effective income tax rate reconciliation

The following table presents 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 for the periods indicated (in millions):

	Year Ended December 31,
	2021		2020		2019
Provision at statutory rate	$	84	$	703	$	347
Foreign income taxed at different rates	19		19		13
Other taxes on foreign operations	89		19		(19)
Stock-based compensation	(26)		(4)		(4)
State taxes, net of federal benefit	3		80		(24)
Research and other tax credits	(39)		(28)		(29)
Impact of tax rate change	(3)		43		(21)
Effective settlement of audits	—		—		(69)
Non-deductible executive compensation	10		9		10
Other	9		17		15
	$	146	$	858	$	219

Schedule of deferred tax assets and liabilities

The following table summarizes significant deferred tax assets and liabilities as of the dates indicated (in millions):

	As of December 31,
	2021		2020
Deferred tax assets:
Net operating loss, capital loss and credits	$	191	$	173
Accruals and allowances	356		390
Stock-based compensation	12		10
Amortizable tax basis in intangibles	3,174		3,471
Net deferred tax assets	3,733		4,044
Valuation allowance	(136)		(149)
	3,597		3,895
Deferred tax liabilities:
Outside basis differences	(3,136)		(2,165)
Acquisition-related intangibles	(37)		(36)
Depreciation and amortization	(202)		(219)
Net unrealized gain on investments	(84)		(307)
	(3,459)		(2,727)
	$	138	$	1,168

Changes in unrecognized tax benefits

The following table presents changes in unrecognized tax benefits for the periods indicated (in millions):

	Year Ended December 31,
	2021		2020		2019
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	420	$	387	$	544
Increases related to prior period tax positions	6		30		37
Decreases related to prior period tax positions	(5)		(15)		(114)
Increases related to current period tax positions	42		39		28
Settlements	(2)		(21)		(108)
Gross amounts of unrecognized tax benefits as of the end of the period	$	461	$	420	$	387