Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016			2015		2014
UK (2016-2015), Dutch (2014)	$	(3	)	$	16	$	17
Non-UK (2016-2015), Non-Dutch (2014)		819			945		604
Income from continuing operations before income taxes and equity in net income of affiliates	$	816		$	961	$	621

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)	2016		2015			2014
Current:
UK (2016-2015), Dutch (2014)	$	—	$	(6	)	$	4
Non-UK (2016-2015), Non-Dutch (2014).		221		176			127
		221		170			131
Deferred:
UK (2016-2015), Dutch (2014)		1		(1	)		1
Non-UK (2016-2015), Non-Dutch (2014)		87		214			104
		88		213			105
Total	$	309	$	383		$	236

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, 2016, 2015 and 2014 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)	2016			2015			2014
Income from continuing operations before income taxes and equity in net income of affiliates	$	816		$	961		$	621
UK (2016-2015), Dutch (2014) statutory tax rate		20.00	%		20.25	%		25.0	%
Provision for income taxes at the UK (2016-2015), Dutch (2014) statutory rate	$	163		$	195		$	155
Tax impact on distributions from foreign subsidiaries		24			(5	)		4
Effect of operations in non-UK and non-Dutch jurisdictions		71			74			19
Tax impact of global licensing arrangements		74			80			84
U.S. state and local taxation		30			40			21
Withholding and other taxation		39			37			38
Effect of global financing activities		(71	)		(82	)		(84	)
Changes in estimates for uncertain tax positions		(9	)		8			(1	)
Changes in valuation allowances		(29	)		17			(21	)
Effect of change in deferred tax rates		1			3			2
Stock-based compensation		(19	)		—			—
Other, net		35			16			19
Total provision for income taxes	$	309		$	383		$	236
Effective tax rate		37.9	%		39.8	%		38.0	%

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, 2016			December 31, 2015
Deferred tax assets (on balance):
Net operating loss carryforwards	$	179		$	181
Interest expense limitation		654			734
Employee benefits		91			72
Tax credit carryforwards		130			142
Stock-based payments		32			41
Accrued expenses		57			39
Other assets		29			55
		1,172			1,264
Valuation allowances		(112	)		(144	)
Deferred tax assets, net of valuation allowances		1,060			1,120
Deferred tax liabilities (on balance):
Intangible assets		(1,591	)		(1,640	)
Fixed asset depreciation		(42	)		(49	)
Computer software		(301	)		(280	)
Deferred revenues/costs		—			(10	)
Financial instruments		(14	)		(6	)
Unrealized gain on investments		(73	)		(73	)
Other liabilities		(87	)		(58	)
		(2,108	)		(2,116	)
Net deferred tax liability	$	(1,048	)	$	(996	)

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, 2016			December 31, 2015			December 31, 2014
Balance as of the beginning of period	$	461		$	452		$	475
Additions for current year tax positions		15			24			14
Additions for tax positions of prior years		7			14			12
Reductions for lapses of statute of limitations		(6	)		(15	)		(12	)
Reductions for tax positions of prior years		(45	)		(14	)		(37	)
Balance as of the end of the period	$	432		$	461		$	452