Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of Income/(Loss) from Continuing Operations Before Income Taxes and Equity in Net Income/(Loss) of Affiliates

The components of income from continuing operations before income taxes and equity in net income of affiliates, were:

	Year Ended December 31,
(IN MILLIONS)	2015		2014		2013
UK (2015), Dutch (2014-2013)	$	16	$	17	$	19
Non-UK (2015), Non-Dutch (2014-2013)		945		604		501
Income from continuing operations before income taxes and equity in net income of affiliates	$	961	$	621	$	520

Provision for Income Taxes Attributable to Income from Continuing Operations Before Income Taxes and Equity in Net Income of Affiliates

The provision for income taxes attributable to the income from continuing operations before income taxes and equity in net income of affiliates consisted of:

	Year Ended December 31,
(IN MILLIONS)	2015			2014		2013
Current:
UK (2015), Dutch (2014-2013)	$	(6	)	$	4	$	4
Non-UK (2015), Non-Dutch (2014-2013).		176			127		194
		170			131		198
Deferred:
UK (2015), Dutch (2014-2013)		(1	)		1		3
Non-UK (2015), Non-Dutch (2014-2013)		214			104		(110	)
		213			105		(107	)
Total	$	383		$	236	$	91

Schedule of Provision for Income Taxes as Per UK or Dutch Federal Income Tax Rates

The Company’s provision for income taxes for the years ended December 31, 2015, 2014 and 2013 was different from the amount computed by applying the statutory UK or Dutch federal income tax rates to the underlying income from continuing operations before income taxes and equity in net income of affiliates as a result of the following:

		Year Ended December 31,
(IN MILLIONS)	2015			2014			2013
Income from continuing operations before income taxes and equity in net income of affiliates	$	961		$	621		$	520
UK (2015), Dutch (2014-2013) statutory tax rate		20.25	%		25.0	%		25.0	%
Provision for income taxes at the UK (2015), Dutch (2014-2013) statutory rate	$	195		$	155		$	130
Tax impact on distributions from foreign subsidiaries		(5	)		4			(38	)
Effect of operations in non-UK jurisdictions		74			19			16
Tax impact of global licensing arrangements		80			84			14
U.S. state and local taxation		40			21			9
Withholding and other taxation		37			38			35
Effect of global financing activities		(82	)		(84	)		(60	)
Changes in estimates for uncertain tax positions		8			(1	)		47
Changes in valuation allowances		17			(21	)		(69	)
Effect of change in deferred tax rates		3			2			3
Other, net		16			19			4
Total provision for income taxes	$	383		$	236		$	91
Effective tax rate		39.8	%		38.0	%		17.5	%

Components of Current and Non-Current Deferred Income Tax Assets/(Liabilities)

The components of current and non-current deferred income tax assets/(liabilities) were:

(IN MILLIONS)	December 31, 2015			December 31, 2014
Deferred tax assets (on balance):
Net operating loss carryforwards	$	181		$	175
Interest expense limitation		734			783
Employee benefits		72			93
Tax credit carryforwards		142			198
Share-based payments		41			43
Accrued expenses		39			21
Financial instruments		—			10
Other assets		55			84
		1,264			1,407
Valuation allowances		(144	)		(147	)
Deferred tax assets, net of valuation allowances		1,120			1,260
Deferred tax liabilities (on balance):
Intangible assets		(1,640	)		(1,692	)
Fixed asset depreciation		(49	)		(25	)
Computer software		(280	)		(185	)
Deferred revenues/costs		(10	)		(13	)
Financial instruments		(6	)		—
Unrealized gain on investments		(73	)		—
Other liabilities		(58	)		(62	)
		(2,116	)		(1,977	)
Net deferred tax liability	$	(996	)	$	(717	)
Recognized as:
Deferred income taxes, current	$	—		$	226
Deferred income taxes, non-current		(996	)		(943	)
Total	$	(996	)	$	(717	)

Schedule of Reconciliation of Beginning and Ending Amount of Gross Uncertain Tax Positions

A reconciliation of the beginning and ending amount of gross uncertain tax positions is as follows:

(IN MILLIONS)	December 31, 2015			December 31, 2014			December 31, 2013
Balance as of the beginning of period	$	452		$	475		$	409
Additions for current year tax positions		24			14			41
Additions for tax positions of prior years		14			12			42
Reductions for lapses of statute of limitations		(15	)		(12	)		(8	)
Reductions for tax positions of prior years		(14	)		(37	)		(9	)
Balance as of the end of the period	$	461		$	452		$	475