Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign income (loss) and income tax expense (benefit)

Domestic and foreign income (loss) before income taxes and details of the income tax expense (benefit) are as follows (amounts in millions):

	For the Years Ended December 31,
	2021		2020		2019
Income before income tax expense:
Domestic	$	1,451	$	1,160	$	328
Foreign	1,713		1,456		1,305
	$	3,164	$	2,616	$	1,633
Income tax expense (benefit):
Current:
Federal	$	189	$	206	$	136
State	35		92		24
Foreign	229		218		323
Total current	453		516		483
Deferred:
Federal	73		(84)		781
State	12		(10)		(16)
Foreign	(73)		(3)		(1,118)
Total deferred	12		(97)		(353)
Income tax expense	$	465	$	419	$	130

Reconciliation of income taxes at the U.S. federal statutory rate to income tax expense (benefit)

The items accounting for the difference between income taxes computed at the U.S. federal statutory income tax rate and the income tax expense (benefit) at the effective tax rate for each of the years are as follows (amounts in millions):

	For the Years Ended December 31,
	2021				2020				2019
Federal income tax provision at statutory rate	$	664	21	%	$	549	21	%	$	343	21	%
State taxes, net of federal benefit	67		2		43		2		21		1
Research and development credits	(81)		(2)		(70)		(3)		(38)		(2)
Foreign earnings taxed at different rates	(120)		(4)		(93)		(4)		(118)		(7)
Foreign-derived intangible income	(50)		(1)		(40)		(2)		(1)		—
Change in tax reserves	43		1		60		2		96		6
Audit settlements	—		—		—		—		54		3
Change in Tax Legislation	(53)		(2)		(23)		(1)		—		—
Change in valuation allowance	11		—		35		2		11		—
Intra-entity IP Transfer	—		—		(31)		(1)		(230)		(14)
Other	(16)		—		(11)		—		(8)		—
Income tax expense	$	465	15	%	$	419	16	%	$	130	8	%

Schedule of the components of the net deferred tax assets (liabilities)

The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):

	As of December 31,
	2021		2020
Deferred tax assets:
Deferred revenue	$	210	$	274
Tax attributes carryforwards	143		123
Share-based compensation	46		51
Intangibles	1,458		1,287
Capitalized software development expenses	—		21
Other	141		160
Deferred tax assets	1,998		1,916
Valuation allowance	(278)		(228)
Deferred tax assets, net of valuation allowance	1,720		1,688
Deferred tax liabilities:
Intangibles	(158)		(147)
Capitalized software development expenses	(10)		—
U.S. deferred taxes on foreign earnings	(603)		(577)
Other	(78)		(63)
Deferred tax liabilities	(849)		(787)
Net deferred tax assets	$	871	$	901

Reconciliation of unrecognized tax benefits for the period

A reconciliation of total gross unrecognized tax benefits is as follows (amounts in millions):

	For the Years Ended December 31,
	2021		2020		2019
Unrecognized tax benefits balance at January 1	$	1,166	$	1,037	$	926
Gross increase for tax positions taken during a prior year	98		97		151
Gross decrease for tax positions taken during a prior year	(18)		(1)		(168)
Gross increase for tax positions taken during the current year	52		38		291
Settlement with taxing authorities	(6)		(3)		(163)
Lapse of statute of limitations	(3)		(2)		—
Unrecognized tax benefits balance at December 31	$	1,289	$	1,166	$	1,037