Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of income before income tax

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

	Year Ended December 31,
	2022		2021		2020
United States	$	123	$	1,608	$	1,167
International	(1,724)		(1,210)		2,178
	$	(1,601)	$	398	$	3,345

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,
	2022		2021		2020
Current:
Federal	$	350	$	472	$	266
State and local	36		128		87
Foreign	67		228		91
	$	453	$	828	$	444
Deferred:
Federal	$	(847)	$	(755)	$	(73)
State and local	(50)		(125)		(8)
Foreign	117		198		495
	(780)		(682)		414
	$	(327)	$	146	$	858

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 (loss) before income taxes for the periods indicated (in millions):

	Year Ended December 31,
	2022		2021		2020
Provision (benefit) at statutory rate	$	(337)	$	84	$	703
Foreign income taxed at different rates	7		19		19
Other taxes on foreign operations	13		89		19
Stock-based compensation	17		(26)		(4)
State taxes, net of federal benefit	(14)		3		80
Research and other tax credits	(45)		(39)		(28)
Penalties	11		—		—
Impact of tax rate change	—		(3)		43
Non-deductible executive compensation	4		10		9
Other	17		9		17
	$	(327)	$	146	$	858

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,
	2022		2021
Deferred tax assets:
Net operating loss, capital loss and credits	$	275	$	191
Accruals and allowances	384		356
Capitalized research expense	181		—
Stock-based compensation	10		12
Amortizable tax basis in intangibles	3,064		3,174
Net deferred tax assets	3,914		3,733
Valuation allowance	(231)		(136)
	3,683		3,597
Deferred tax liabilities:
Outside basis differences	(2,446)		(3,136)
Acquisition-related intangibles	(64)		(37)
Depreciation and amortization	(243)		(202)
Net unrealized gain on investments	(6)		(84)
	(2,759)		(3,459)
	$	924	$	138

Changes in unrecognized tax benefits

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

	Year Ended December 31,
	2022		2021		2020
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	461	$	420	$	387
Increases related to prior period tax positions	4		6		30
Decreases related to prior period tax positions	(7)		(5)		(15)
Increases related to current period tax positions	40		42		39
Settlements	(5)		(2)		(21)
Gross amounts of unrecognized tax benefits as of the end of the period	$	493	$	461	$	420