Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Before Taxes from Domestic and Foreign Operations

Income before taxes on income resulting from domestic and foreign operations is as follows:

(in millions)	Year Ended December 31,
	2021		2020		2019
Domestic operations	$	2,874	$	2,226	$	2,068
Foreign operations	1,290		1,002		862
Total income before taxes	$	4,164	$	3,228	$	2,930

Schedule of Provision for Taxes on Income

The provision for taxes on income consists of the following:

(in millions)	Year Ended December 31,
	2021		2020		2019
Federal:
Current	$	438	$	349	$	303
Deferred	(9)		1		13
Total federal	429		350		316
Foreign:
Current	295		246		201
Deferred	23		(9)		14
Total foreign	318		237		215
State and local:
Current	153		111		93
Deferred	1		(4)		3
Total state and local	154		107		96
Total provision for taxes	$	901	$	694	$	627

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

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

 

	Year Ended December 31,
	2021		2020		2019
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	3.3		3.0		2.6
Foreign operations	(0.2)		(0.3)		(0.3)
Stock-based compensation	(0.8)		(0.7)		(1.4)
S&P Dow Jones Indices LLC joint venture	(1.1)		(1.2)		(1.2)
Tax credits and incentives	(2.3)		(2.2)		(1.7)
Other, net	1.7		1.9		2.4
Effective income tax rate	21.6	%	21.5	%	21.4	%

Schedule of Differences Between the Accounting for Income and Expenses for Financial Reporting and Income Tax

The principal temporary differences between the accounting for income and expenses for financial reporting and income tax purposes are as follows: 

(in millions)	December 31,
	2021		2020
Deferred tax assets:
Employee compensation	$	57	$	64
Accrued expenses	54		41
Postretirement benefits	28		12
Unearned revenue	74		28
Forward exchange contracts	71		—
Loss carryforwards	204		217
Lease liabilities	142		186
Other	32		53
Total deferred tax assets	662		601
Deferred tax liabilities:
Goodwill and intangible assets	(394)		(347)
Right of use asset	(101)		(138)
Postretirement benefits	(46)		—
Fixed assets	(6)		(7)
Total deferred tax liabilities	(547)		(492)
Net deferred income tax asset before valuation allowance	115		109
Valuation allowance	(206)		(219)
Net deferred income tax liability	$	(91)	$	(110)
Reported as:
Non-current deferred tax assets	$	56	$	67
Non-current deferred tax liabilities	(147)		(177)
Net deferred income tax liability	$	(91)	$	(110)

Reconciliation 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
Balance at beginning of year	$	121	$	124	$	147
Additions based on tax positions related to the current year	35		24		21
Additions for tax positions of prior years	9		1		11
Reduction for tax positions of prior years	—		(13)		(15)
Reduction for settlements	(8)		(4)		(33)
Expiration of applicable statutes of limitations	(10)		(11)		(7)
Balance at end of year	$	147	$	121	$	124