Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Income before income taxes
Domestic	$	1,016	$	184	$	4,179
Foreign	1,878		1,624		1,519
Total	$	2,894	$	1,808	$	5,698
Income tax provision
Current tax expense:
Federal	$	287	$	366	$	533
State	27		206		267
Foreign	471		331		292
Total	$	785	$	903	$	1,092
Deferred tax expense/(benefit):
Federal	$	(124)	$	(413)	$	258
State	(197)		(165)		92
Foreign	(8)		(15)		187
	$	(329)	$	(593)	$	537
Total income tax expense	$	456	$	310	$	1,629

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,
	2023		2022		2021
Statutory federal income tax rate	21	%	21	%	21	%
State and local income taxes, net of federal benefit	2		5		4
Foreign tax rate differential	2		(1)		—
Current year tax benefit from foreign derived intangible income	(2)		(3)		(1)
Deferred tax from foreign tax law change and Bakkt transaction	—		—		4
Unrecognized tax benefits	(1)		1		1
State apportionment changes	(6)		—		—
State deferred benefit of Bakkt impairment	—		(5)		—
Other	—		(1)		—
Total provision for income taxes	16	%	17	%	29	%

Schedule Of Deferred Tax Assets And Liabilities

The following table summarizes the significant components of our deferred tax liabilities and assets as of December 31, 2023 and 2022 (in millions):

	As of December 31,
	2023		2022
Deferred tax assets:
Deferred and stock-based compensation	$	98	$	78
Liability reserve	60		66
Tax credits	10		7
Loss carryforward	275		91
Deferred revenue	25		19
Lease liability	64		77
Property and equipment	118		—
Other	81		31
Total	731		369
Valuation allowance	(166)		(92)
Total deferred tax assets, net of valuation allowance	$	565	$	277
Deferred tax liabilities:
Property and equipment	$	—	$	(60)
Acquired intangibles	(4,507)		(3,527)
Right of use asset	(48)		(62)
Equity investment	(90)		(121)
Total deferred tax liabilities	$	(4,645)	$	(3,770)
Net deferred tax liabilities	$	(4,080)	$	(3,493)
Reported as:
Net non-current deferred tax liabilities	$	(4,080)	$	(3,493)

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,
	2023		2022		2021
Beginning balance of deferred income tax valuation allowance	$	92	$	99	$	95
Charges against goodwill	102		—		—
Increases/(Decreases)	(28)		(7)		4
Ending balance of deferred income tax valuation allowance	$	166	$	92	$	99

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,
	2023		2022		2021
Beginning balance of unrecognized tax benefits	247		229		$	188
Additions/(reductions) related to acquisitions	25		—		(1)
Additions based on tax positions taken in current year	31		30		41
Additions based on tax positions taken in prior years	33		—		3
Reductions based on tax positions taken in prior years	(18)		(3)		(2)
Reductions resulting from statute of limitation lapses	(7)		(9)		—
Reductions related to settlements with taxing authorities	(43)		—		—
Ending balance of unrecognized tax benefits	$	268	$	247	$	229

Open Tax Years and Examinations by Jurisdiction

The following table summarizes open tax years by major jurisdiction:

Jurisdiction	Open Tax Years
U.S. Federal	2020 - 2023

U.S. States	2011 - 2023
U.K.	2021 - 2023