Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of domestic and foreign income (loss) and income tax expense (benefit)

Domestic and foreign income (loss) before income taxes and details of the income tax expense (benefit) are as follows (amounts in millions):

	For the Years Ended December 31,
	2020		2019		2018
Income before income tax expense:
Domestic	$	1,160	$	328	$	432
Foreign	1,456		1,305		1,445
	$	2,616	$	1,633	$	1,877
Income tax expense (benefit):
Current:
Federal	$	206	$	136	$	(208)
State	92		24		(15)
Foreign	218		323		280
Total current	516		483		57
Deferred:
Federal	(84)		781		(153)
State	(10)		(16)		106
Foreign	(3)		(1,118)		19
Total deferred	(97)		(353)		(28)
Income tax expense	$	419	$	130	$	29

Reconciliation of income taxes at the U.S. federal statutory rate to income tax expense (benefit)

The items accounting for the difference between income taxes computed at the U.S. federal statutory income tax rate and the income tax expense (benefit) at the effective tax rate for each of the years are as follows (amounts in millions):

	For the Years Ended December 31,
	2020				2019				2018
Federal income tax provision at statutory rate	$	549	21	%	$	343	21	%	$	394	21	%
State taxes, net of federal benefit	49		2		20		1		36		2
Research and development credits	(70)		(3)		(38)		(2)		(46)		(2)
Foreign rate differential	(103)		(4)		(104)		(7)		(198)		(11)
Foreign-derived intangible income	(40)		(2)		(1)		—		—		—
Change in tax reserves	60		2		96		6		285		15
Audit settlements	—		—		54		3		(115)		(6)
Excess tax benefits related to share-based payments	(30)		(1)		(2)		—		(58)		(3)
U.S. Tax Reform Act	—		—		—		—		(340)		(18)
Change in valuation allowance	35		2		11		1		61		3
Intra-entity IP Transfer	(31)		(1)		(230)		(14)		—		—
Other	—		—		(19)		(1)		10		1
Income tax expense	$	419	16	%	$	130	8	%	$	29	2	%

Schedule of the components of the net deferred tax assets (liabilities)

The components of the net deferred tax assets (liabilities) are as follows (amounts in millions):

	As of December 31,
	2020		2019
Deferred tax assets:
Deferred revenue	$	274	$	119
Tax attributes carryforwards	123		93
Share-based compensation	51		54
Intangibles	1,287		1,289
Capitalized software development expenses	21		67
Other	160		156
Deferred tax assets	1,916		1,778
Valuation allowance	(228)		(181)
Deferred tax assets, net of valuation allowance	1,688		1,597
Deferred tax liabilities:
Intangibles	(147)		(142)
U.S. deferred taxes on foreign earnings	(577)		(594)
Other	(63)		(73)
Deferred tax liabilities	(787)		(809)
Net deferred tax assets	$	901	$	788

Reconciliation of unrecognized tax benefits for the period

A reconciliation of total gross unrecognized tax benefits is as follows (amounts in millions):

	For the Years Ended December 31,
	2020		2019		2018
Unrecognized tax benefits balance at January 1	$	1,037	$	926	$	1,138
Gross increase for tax positions taken during a prior year	97		151		103
Gross decrease for tax positions taken during a prior year	(1)		(168)		(123)
Gross increase for tax positions taken during the current year	38		291		132
Settlement with taxing authorities	(3)		(163)		(312)
Lapse of statute of limitations	(2)		—		(12)
Unrecognized tax benefits balance at December 31	$	1,166	$	1,037	$	926