Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes and the income tax provision consisted of the following (in millions), and our consolidated income tax provision for 2021 was elevated due to the income tax expense associated with the gains we recognized from the Coinbase and Bakkt transactions.

	Year Ended December 31,
	2021		2020		2019
Income before income taxes
Domestic	$	4,179	$	1,449	$	1,333
Foreign	1,519		1,317		1,148
Total	$	5,698	$	2,766	$	2,481
Income tax provision
Current tax expense:
Federal	$	533	$	166	$	189
State	267		136		124
Foreign	292		264		241
Total	$	1,092	$	566	$	554
Deferred tax expense (benefit):
Federal	$	258	$	73	$	(21)
State	92		(42)		(4)
Foreign	187		61		(8)
	$	537	$	92	$	(33)
Total income tax expense	$	1,629	$	658	$	521

Reconciliation of Statutory U.S. Federal Income Tax Rate to Effective Income Tax Rate

A reconciliation of the statutory U.S. federal income tax rate to our effective income tax rate is as follows:

	Year Ended December 31,
	2021		2020		2019
Statutory federal income tax rate	21	%	21	%	21	%
State and local income taxes, net of federal benefit	4		3		4
Foreign tax rate differential	—		(1)		(1)
Current year tax benefit from foreign derived intangible income	(1)		(1)		(1)
Deferred tax from foreign tax law change and Bakkt transaction	4		2		—
Unrecognized tax benefits	1		1		—
State apportionment changes	—		(1)		—
Other	—		—		(2)
Total provision for income taxes	29	%	24	%	21	%

Schedule Of Deferred Tax Assets And Liabilities

The deferred tax liability with respect to the equity investment in Bakkt is $424 million as of December 31, 2021 and is reflected in the following table, which summarizes the significant components of our deferred tax liabilities and assets as of December 31, 2021 and 2020 (in millions):

	As of December 31,
	2021		2020
Deferred tax assets:
Deferred and stock-based compensation	$	76	$	82
Liability reserve	59		49
Tax credits	12		14
Loss carryforward	115		115
Deferred revenue	23		26
Lease liability	77		93
Other	20		33
Total	382		412
Valuation allowance	(99)		(95)
Total deferred tax assets, net of valuation allowance	$	283	$	317
Deferred tax liabilities:
Property and equipment	$	(172)	$	(153)
Acquired intangibles	(3,660)		(3,606)
Right of use asset	(58)		(75)
Equity investment	(493)		(46)
Total deferred tax liabilities	$	(4,383)	$	(3,880)
Net deferred tax liabilities	$	(4,100)	$	(3,563)
Reported as:
Net non-current deferred tax liabilities	$	(4,100)	$	(3,563)

Reconciliation of Deferred Income Tax Valuation Allowance

A reconciliation of the beginning and ending amount of deferred income tax valuation allowance is as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
Beginning balance of deferred income tax valuation allowance	$	95	$	119	$	119
Charges against goodwill	—		2		1
Increases/(Decreases)	4		(26)		(1)
Ending balance of deferred income tax valuation allowance	$	99	$	95	$	119

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):

	Year Ended December 31,
	2021		2020		2019
Beginning balance of unrecognized tax benefits	188		103		$	98
Additions/(reductions) related to acquisitions	(1)		58		—
Additions based on tax positions taken in current year	41		21		17
Additions based on tax positions taken in prior years	3		14		9
Reductions based on tax positions taken in prior years	(2)		—		(1)
Reductions resulting from statute of limitation lapses	—		(5)		(13)
Reductions related to settlements with taxing authorities	—		(3)		(7)
Ending balance of unrecognized tax benefits	$	229	$	188	$	103

Open Tax Years and Examinations by Jurisdiction

The following table summarizes open tax years by major jurisdiction:

Jurisdiction	Open Tax Years
U.S. Federal	2017 - 2021
U.S. States	2009 - 2021
U.K.	2019 - 2021