Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Components of Income Tax Provision

	Year Ended December 31,
	2013		2012		2011
	(in millions)
Current income taxes:
Federal	$	134	$	130	$	129
State		21		37		34
Foreign		33		16		23
Total current income taxes		188		183		186
Deferred income taxes:
Federal		13		(10)		(18)
State		11		6		-
Foreign		4		20		22
Total deferred income taxes		28		16		4
Total income tax provision	$	216	$	199	$	190

Reconciliation of Provision of Income Taxes

	Year Ended December 31,
	2013		2012		2011
	(in millions)
Federal income tax provision at the statutory rate	35.0	%	35.0	%	35.0	%
State income tax provision, net of federal effect	2.9	%	4.2	%	3.3	%
Non-U.S. subsidiary earnings	(4.4)	%	(6.3)	%	(6.3)	%
Change in deferred taxes due to change in tax rate(1)	0.6	%	2.3	%	0.5	%
Change in unrecognized tax benefits	4.8	%	2.6	%	1.0	%
Other, net	(2.9)	%	(1.5)	%	(0.3)	%
Actual income tax provision(1)	36.0	%	36.3	%	33.2	%

(1)The higher effective tax rate in 2012 when compared to 2011 was primarily due to the impact to deferred tax assets and deferred tax liabilities resulting from changes in tax rates in various jurisdictions within the U.S. and outside the U.S., adjustments related to our 2005 – 2011 tax return liabilities which resulted in an increase to the tax provision and a shift in the geographic mix of earnings and losses. These increases are partially offset by a permanent tax benefit associated with certain taxable foreign exchange revaluation losses which are not reflected in pre-tax earnings.

Schedule of Deferred Tax Assets and Liabilities

		December 31,
		2013		2012
	(in millions)
Deferred tax assets:
Deferred revenues	$	36	$	39
U.S. federal net operating loss		1		10
Foreign net operating loss		105		95
State net operating loss		1		4
Compensation and benefits		84		112
Foreign currency translation		231		103
Lease reserves		11		14
Tax credits		10		17
Other		17		14
Gross deferred tax assets		496		408
Deferred tax liabilities:
Amortization of software development costs and depreciation		(91)		(58)
Amortization of acquired intangible assets		(631)		(647)
Compensation and benefits		(12)		(18)
Other		(12)		(25)
Gross deferred tax liabilities		(746)		(748)
Net deferred tax liabilities before valuation allowance		(250)		(340)
Less: valuation allowance		(80)		(81)
Net deferred tax liabilities	$	(330)	$	(421)

Domestic and Foreign Components of Income Before Income Tax Provision

	Year Ended December 31,
	2013		2012		2011
	(in millions)
Domestic	$	362	$	355	$	321
Foreign		238		193		252
Income before income tax provision	$	600	$	548	$	573

Reconciliation of Unrecognized Tax Benefits

		Year Ended December 31,
		2013		2012
	(in millions)
Beginning balance	$	32	$	18
Additions as a result of tax positions taken in prior periods		17		16
Additions as a result of tax positions taken in the current period		11		3
Reductions related to settlements with taxing authorities		(1)		(5)
Reductions as a result of lapses of the applicable statute of limitations		(1)		-
Ending balance	$	58	$	32