Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2017

The components of taxes on income are as follows:

The temporary differences that created deferred tax assets and liabilities are detailed below:



December 31,	2017			2016
Deferred tax assets:
Employee compensation, severance, and benefits	$	133		$	216
Net unrealized loss on available for sale securities	57			97
Reserves and allowances	15			25
Facilities lease commitments	14			25
State and local taxes	12			17
Net operating loss carryforwards	5			5
Other	3			—
Total deferred tax assets	239			385
Valuation allowance	(2		)	(3		)
Deferred tax assets — net of valuation allowance	237			382
Deferred tax liabilities:
Capitalized internal-use software development costs	(89		)	(118		)
Depreciation and amortization	(72		)	(114		)
Other	—			(7		)
Total deferred tax liabilities	(161		)	(239		)
Deferred tax asset — net ⁽¹⁾	$	76		$	143

⁽¹⁾ Amounts are included in other assets on the consolidated balance sheets at both December 31, 2017 and 2016.

A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:



Year Ended December 31,	2017		2016		2015
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal tax benefit	2.2		2.4		2.6
Equity compensation benefit	(2.4	)	—		—
Other ⁽¹⁾	0.7		(0.5	)	(1.1	)
Effective income tax rate	35.5	%	36.9	%	36.5	%

⁽¹⁾ Includes the impact of one-time charge to taxes on income associated with the Tax Act.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



December 31,	2017			2016
Balance at beginning of year	$	93		$	48
Additions for tax positions related to the current year	22			16
Additions for tax positions related to prior years	15			32
Reductions for tax positions related to prior years	(2		)	(2		)
Reductions due to lapse of statute of limitations	—			—
Reductions for settlements with tax authorities	(17		)	(1		)
Balance at end of year	$	111		$	93