Accounting Principles and Practices Accounting Principles and Practices (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables summarize the impacts of adopting ASC 606 on the Company’s Condensed Consolidated Statement of Income, Financial Position, and Cash Flows as of and for the three months ended March 31, 2018.

Condensed Consolidated Statement of Income

	Three Months Ended March 31, 2018
(millions)	As Reported			Adjustments			Balances Without Adoption of ASC 606
Revenue
Total revenue	$	3,090		$	(413	)	$	2,677
Expenses
Compensation and benefits	$	1,616		$	(65	)	$	1,551
Other income (expense)	$	(15	)	$	1		$	(14	)
Income taxes	$	114		$	(82	)	$	32

As a result of applying the modified retrospective method to adopt ASC 606, the following adjustments were made to the Condensed Consolidated Statement of Financial position as of January 1, 2018:

	December 31, 2017					January 1, 2018
(millions)	As Reported		Adjustments			As Adjusted
ASSETS
Receivables, net	$	2,478	$	252		$	2,730
Other current assets	$	289	$	298		$	587
Deferred tax assets	389		(128		)	261
Other non-current assets	$	307	$	145		$	452
LIABILITIES
Accounts payable and accrued liabilities	$	1,961	$	8		$	1,969
Other current liabilities	$	870	$	13		$	883
Deferred tax liabilities	$	127	$	42		$	169
Other non-current liabilities	$	1,102	$	(3	)	$	1,099
EQUITY
Total equity	$	4,648	$	507		$	5,155

Condensed Consolidated Statement of Financial Position

	As of March 31, 2018
(millions)	As Reported		Adjustments			Balances Without Adoption of ASC 606
ASSETS
Receivables, net	$	3,053	$	(644	)	$	2,409
Other current assets	$	609	$	(239	)	$	370
Deferred tax assets	$	296	$	130		$	426
Other non-current assets	$	439	$	(143	)	$	296
LIABILITIES
Other current liabilities	$	972	$	(52	)	$	920
Deferred tax liabilities	$	243	$	(68	)	$	175
Other non-current liabilities	$	1,105	$	3		$	1,108
EQUITY
Total equity	$	5,385	$	(779	)	$	4,606

	Three Months Ended March 31, 2018
(millions)	As Reported			Adjustments			Balances Without Adoption of ASC 606
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	610		$	(265	)	$	345
Deferred income taxes	$	26		$	(28	)	$	(2	)
Receivables, net	$	(269	)	$	400		$	131
Accounts payable and accrued liabilities	$	(439	)	$	8		$	(431	)
Current income taxes	$	30		$	(54	)	$	(24	)
Other assets and liabilities	$	38		$	(61	)	$	(23	)

Upon adoption of the guidance, the presentation of the results reflect a change in Operating income offset by an equal and offsetting change in Other income (expense) for the period ended March 31, 2017 as follows:

	Three Months Ended March 31, 2017
	As Reported			Adjustments			As Adjusted
Operating income (1)	$	343		$	(8	)	$	335
Other income (expense)	$	(10	)	$	8		$	(2	)

(1) Reclassification from Operating income is recorded in Compensation and benefits.