Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of income before income tax

The components of pretax income for the years ended December 31, 2016, 2015 and 2014 are as follows (in millions):

	Year Ended December 31,
	2016		2015		2014
United States	$	1,529	$	396	$	510
International	2,122		2,010		2,005
	$	3,651	$	2,406	$	2,515

Schedule of components of income tax expense (benefit)

The provision for income taxes is comprised of the following (in millions):

	Year Ended December 31,
	2016			2015			2014
Current:
Federal	$	689		$	363		$	489
State and local	55			22			20
Foreign	178			106			127
	$	922		$	491		$	636
Deferred:
Federal	$	77		$	(53	)	$	2,091
State and local	—			(2		)	21
Foreign	(4,633		)	23			632
	(4,556		)	(32		)	2,744
	$	(3,634	)	$	459		$	3,380

Schedule of effective income tax rate reconciliation

The following is a reconciliation of the difference between the actual provision for income taxes and the provision computed by applying the federal statutory rate of 35% for 2016, 2015 and 2014 to income before income taxes (in millions):

	Year Ended December 31,
	2016			2015			2014
Provision at statutory rate	$	1,278		$	843		$	881
Prior year foreign earnings no longer considered indefinitely reinvested	—			—			2,991
Foreign income taxed at different rates	(346		)	(399		)	(432		)
Change in valuation allowance	—			1			(142		)
Stock-based compensation	24			23			22
State taxes, net of federal benefit	55			20			42
Research and other tax credits	(16		)	(27		)	(14		)
Tax basis step-up resulting from realignment	(4,621		)	—			—
Other	(8		)	(2		)	32
	$	(3,634	)	$	459		$	3,380

Schedule of deferred tax assets and liabilities

Significant deferred tax assets and liabilities consist of the following (in millions):

	As of December 31,
	2016			2015
Deferred tax assets:
Net operating loss, capital loss and credits	$	78		$	206
Accruals and allowances	222			209
Stock-based compensation	65			65
Amortizable tax basis in intangibles	4,621			—
Net unrealized losses	—			8
Net deferred tax assets	4,986			488
Valuation allowance	(37		)	(41		)
	$	4,949		$	447
Deferred tax liabilities:
Unremitted foreign earnings	$	(1,578	)	$	(1,656	)
Acquisition-related intangibles	(29		)	(19		)
Depreciation and amortization	(158		)	(190		)
Available-for-sale securities	(29		)	(251		)
Other	—			—
	(1,794		)	(2,116		)
	$	3,155		$	(1,669	)

Changes in unrecognized tax benefits

The following table reflects changes in unrecognized tax benefits for the years ended December 31, 2016, 2015 and 2014 (in millions):

	2016			2015			2014
Gross amounts of unrecognized tax benefits as of the beginning of the period	$	440		$	367		$	304
Increases related to prior period tax positions	24			36			35
Decreases related to prior period tax positions	(20		)	(8		)	(18		)
Increases related to current period tax positions	47			51			59
Settlements	(33		)	(6		)	(13		)
Gross amounts of unrecognized tax benefits as of the end of the period	$	458		$	440		$	367