Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of components of income (loss) before income taxes

The components of income (loss) before income taxes are as follows:

	Year Ended December 31,
	2019		2018			2017
	(In millions)
United States	$	8	$	(474	)	$	(593	)
International	2,990		2,850			2,793
Income before income taxes	$	2,998	$	2,376		$	2,200

Schedule of income tax expense

The income tax expense is composed of the following:

	Year Ended December 31,
	2019			2018			2017
	(In millions)
Current:
Federal	$	132		$	180		$	1,522
State and local	47			32			36
Foreign	629			278			146
Total current portion of income tax expense	$	808		$	490		$	1,704
Deferred:
Federal	$	(107	)	$	(115	)	$	(1,304	)
State and local	(39		)	(35		)	(3		)
Foreign	(123		)	(21		)	8
Total deferred portion of income tax expense	(269		)	(171		)	(1,299		)
Income tax expense	$	539		$	319		$	405

Schedule of reconciliation of the difference between the effective income tax rate and the federal statutory rate

The following is a reconciliation of the difference between the effective income tax rate and the federal statutory rate:

	Year Ended December 31,
	2019		2018		2017
Federal statutory rate	21.0	%	21.0	%	35.0	%
State taxes, net of federal benefit	0.3	%	(0.1	)%	0.8	%
Foreign income taxed at different rates	(5.0	)%	(3.9	)%	(26.7	)%
Stock-based compensation expense	(3.9	)%	(4.1	)%	(0.8	)%
Tax credits	(2.4	)%	(2.1	)%	(1.4	)%
Change in valuation allowances	0.1	%	—	%	1.4	%
U.S. tax reform (the Tax Act)	—	%	0.9	%	8.2	%
Intra-group transfer of intellectual property	7.6	%	0.7	%	1.0	%
Other	0.3	%	1.0	%	0.9	%
Effective income tax rate	18.0	%	13.4	%	18.4	%

Schedule of deferred tax assets and liabilities

The following table shows the deferred tax assets and liabilities within our consolidated balance sheets:

		As of December 31,
		2019			2018
	Balance Sheet Location	(In millions)
Total deferred tax assets (non-current)	Other assets	$	396		$	224
Total deferred tax liabilities (non-current)	Deferred tax liability and other long-term liabilities	(89		)	(109		)
Total net deferred tax assets		$	307		$	115

Significant deferred tax assets and liabilities consist of the following:

	As of December 31,
	2019			2018
	(In millions)
Deferred tax assets:
Net operating loss and credit carryforwards	$	182		$	196
Accruals and allowances	235			179
Lease liability	120			—
Partnership investment	8			9
Stock-based compensation	160			136
Net unrealized losses	5			8
Fixed assets and other intangibles	88			—
Total deferred tax assets	798			528
Valuation allowance	(184		)	(132		)
Net deferred tax assets	$	614		$	396
Deferred tax liabilities:
Unremitted foreign earnings	$	(17	)	$	(35	)
Fixed assets and other intangibles	—			(58		)
Acquired intangibles	(103		)	(167		)
Lease asset	(116		)	—
Net unrealized gains	(71		)	(21		)
Total deferred tax liabilities	(307		)	(281		)
Net deferred tax assets	$	307		$	115

Schedule of unrecognized tax benefits

The following table reflects changes in unrecognized tax benefits for the periods presented below:

	Year Ended December 31,
	2019			2018			2017
	(In millions)
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	800		$	424		$	312
Increases related to prior period tax positions	97			120			61
Decreases related to prior period tax positions	(28		)	(6		)	(23		)
Increases related to current period tax positions	336			287			112
Settlements	(63		)	(20		)	(35		)
Statute of limitation expirations	(1		)	(5		)	(3		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	1,141		$	800		$	424