Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 3 — INCOME TAXES

Our provisions for income taxes for the quarters ended June 30, 2022 and 2021 were $381 million and $453 million, respectively, and the effective tax rates were 24.8% and 23.8%, respectively. Our provisions for income taxes for the six months ended June 30, 2022 and 2021 were $730 million and $846 million, respectively, and the effective tax rates were 23.1% and 22.7%, respectively. Our provisions for income taxes included tax benefits related to settlements of employee equity awards of $67 million and $85 million for the six months ended June 30, 2022 and 2021, respectively.

Our liability for unrecognized tax benefits was $663 million, including accrued interest of $110 million, as of June 30, 2022 ($642 million and $99 million, respectively, as of December 31, 2021). Unrecognized tax benefits of $240 million ($217 million as of December 31, 2021) would affect the effective rate, if recognized.

At June 30, 2022, the Internal Revenue Service was conducting examinations of the Company’s 2016, 2017 and 2018 federal income tax returns and the 2019 return for one affiliated partnership. We are also subject to examination by state and foreign taxing authorities. Depending on the resolution of any federal, state and foreign tax disputes, the completion of examinations by federal, state or foreign taxing authorities, or the expiration of statutes of limitation for specific taxing jurisdictions, we believe it is reasonably possible that our liability for unrecognized tax benefits may significantly increase or decrease within the next 12 months. However, we are currently unable to estimate the range of any possible change.