Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of pretax income and income tax provision (benefit) for continuing operations

Substantially all of the Company’s pre-tax earnings are derived from domestic operations in all periods presented. The income tax provision was as follows for the years ended December 31:

(In millions)	2020		2019		2018
Components of income tax provision (benefit):
Current:
Federal	$	(25)	$	25	$	189
State	71		69		39
Foreign	79		57		17
	125		151		245
Deferred:
Federal	189		118		110
State	(34)		(18)		24
Foreign	(84)		(53)		(1)
	71		47		133
Income tax provision	$	196	$	198	$	378

Reconciliation of statutory federal income tax rate to effective income tax rate

A reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows for the years ended December 31:

	2020		2019		2018
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal effect	2.0	%	3.7	%	3.2	%
Tax expense due to federal tax reform	—	%	—	%	1.2	%
Enacted United Kingdom tax rate change	2.8	%	—	%	—	%
Foreign derived intangibles income deduction	(3.2)	%	(0.2)	%	(0.2)	%
Excess tax benefit from share-based awards	(3.9)	%	(5.1)	%	(2.2)	%
Sale of businesses and subsidiary restructuring	0.7	%	(2.6)	%	1.3	%
Unrecognized tax benefits	(1.0)	%	(0.1)	%	—	%
Nondeductible executive compensation	2.0	%	1.0	%	0.2	%
Valuation Allowance	(1.7)	%	0.3	%	—	%
Other, net	(2.0)	%	0.3	%	(0.2)	%
Effective income tax rate	16.7	%	18.3	%	24.3	%

Schedule of deferred tax assets and liabilities

Significant components of deferred tax assets and liabilities consisted of the following at December 31:

(In millions)	2020		2019
Accrued expenses	$	189	$	303
Share-based compensation	185		216
Net operating loss and credit carry-forwards	1,158		1,444
Foreign tax credits on undistributed earnings	—		289
Leasing liabilities	171		219
Other	76		65
Subtotal	1,779		2,536
Valuation allowance	(888)		(1,145)
Total deferred tax assets	891		1,391
Capitalized software development costs	(614)		(622)
Intangible assets	(2,993)		(3,297)
Property and equipment	(198)		(143)
Capitalized commissions	(87)		(86)
Investments in joint ventures	(908)		(841)
Leasing right-of-use assets	(141)		(205)
Other	(311)		(332)
Total deferred tax liabilities	(5,252)		(5,526)
Total	$	(4,361)	$	(4,135)

Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows at December 31:

(In millions)	2020		2019
Noncurrent assets	$	28	$	112
Noncurrent liabilities	(4,389)		(4,247)
Total	$	(4,361)	$	(4,135)

Schedule of operating loss carryforwards and general business credit carryforwards

The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31:

(In millions)	2020		2019
Net operating loss carryforwards: (1)
Federal	$	443	$	1,674
State	3,944		4,636
Foreign	3,343		3,201
General business credit carryforwards (2)	41		57

(1)At December 31, 2020, the Company had federal net operating loss carryforwards of $443 million, most of which expire in 2021 through 2037, state net operating loss carryforwards of $3.9 billion, most of which expire in 2021 through 2040, and foreign net operating loss carryforwards of $3.3 billion, of which $263 million expire in 2021 through 2040, and the remainder of which do not expire.

(2)At December 31, 2020, the Company had general business credit carryforwards of $41 million which expire in 2025 through 2038.

Schedule of operating loss carryforwards and general business credit carryforwards

The following table presents the amounts of federal, state and foreign net operating loss carryforwards and general business credit carryforwards at December 31:

(In millions)	2020		2019
Net operating loss carryforwards: (1)
Federal	$	443	$	1,674
State	3,944		4,636
Foreign	3,343		3,201
General business credit carryforwards (2)	41		57

(1)At December 31, 2020, the Company had federal net operating loss carryforwards of $443 million, most of which expire in 2021 through 2037, state net operating loss carryforwards of $3.9 billion, most of which expire in 2021 through 2040, and foreign net operating loss carryforwards of $3.3 billion, of which $263 million expire in 2021 through 2040, and the remainder of which do not expire.

(2)At December 31, 2020, the Company had general business credit carryforwards of $41 million which expire in 2025 through 2038.

Schedule of unrecognized tax benefits

Unrecognized tax benefits were as follows at December 31:

(In millions)	2020		2019		2018
Unrecognized tax benefits - Beginning of year	$	145	$	49	$	42
Increases for assumed tax positions related to First Data	—		82		—
Increases for tax positions taken during the current year	9		8		3
Increases for tax positions taken in prior years	53		16		20
Decreases for tax positions taken in prior years	(23)		(2)		(8)
Decreases for settlements	(2)		(1)		—
Lapse of the statute of limitations	(11)		(7)		(8)
Unrecognized tax benefits - End of year	$	171	$	145	$	49