Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the components of income tax expense (benefit) for the periods indicated: 

	Years Ended December 31,
(In millions)	2020		2019		2018
Current:
Federal	$	241	$	157	$	122
State	122		86		148
Non-U.S.	310		357		374
Total current expense	673		600		644
Deferred:
Federal	(168)		(6)		(128)
State	5		33		(22)
Non-U.S.	(31)		(157)		14
Total deferred expense (benefit)	(194)		(130)		(136)
Total income tax expense (benefit)	$	479	$	470	$	508

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the U.S. statutory income tax rate to our effective tax rate based on income before income tax expense for the periods indicated:

	Years Ended December 31,
	2020		2019		2018
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Changes from statutory rate:
State taxes, net of federal benefit	3.8		3.4		3.1
Tax-exempt income	(1.3)		(1.5)		(2.0)
Business tax credits(1)	(5.1)		(5.4)		(4.1)
Foreign tax differential	(0.8)		(0.1)		(0.6)
Foreign legal entity restructuring	—		(4.3)		—
Foreign tax credit (benefits)/ limitations	(0.9)		2.2		0.2
Deferred tax revaluation	—		—		(1.0)
Litigation expense	—		1.6		0.3
Other, net	(0.2)		0.4		(0.6)
Effective tax rate	16.5	%	17.3	%	16.3	%

(1) Business tax credits include low-income housing, production and investment tax credits.

Schedule of Deferred Tax Assets and Liabilities

The following table presents significant components of our gross deferred tax assets and gross deferred tax liabilities as of the dates indicated:

	December 31,
(In millions)	2020		2019
Deferred tax assets:
Other amortizable assets	$	385	$	394
Tax credit carryforwards	564		387
Lease obligations	243		254
Deferred compensation	110		120
Restructuring charges and other reserves	129		104
NOL and other carryforwards	101		73
Pension plan	56		66
Foreign currency translation	3		57
Total deferred tax assets	1,591		1,455
Valuation allowance for deferred tax assets	(295)		(330)
Deferred tax assets, net of valuation allowance	$	1,296	$	1,125
Deferred tax liabilities:
Fixed and intangible assets	$	765	$	763
Investment basis differences	269		258
Right-of-use Assets	187		223
Unrealized gains on investment securities, net	321		86
Other	51		32
Total deferred tax liabilities	$	1,593	$	1,362

Summary of Valuation Allowance

The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2020:

(In millions)	Deferred Tax Asset		Valuation Allowance		Expiration
Other amortizable assets	$	385	$	(233)	__
Tax credits	564		—		2038-2040
NOLs - Non-U.S.	65		(40)		2026-2031, None
Other carryforwards	19		(5)		None
NOLs - State	17		(17)		2021-2040

Summary of Income Tax Contingencies

The following table presents activity related to unrecognized tax benefits as of the dates indicated:

	December 31,
(In millions)	2020		2019		2018
Beginning balance	$	149	$	108	$	94
Decrease related to agreements with tax authorities	—		(17)		(40)
Increase related to tax positions taken during current year	47		13		12
Increase related to tax positions taken during prior years	137		49		44
Decreases related to a lapse of the applicable statute of limitations	(25)		(4)		(2)
Ending balance	$	308	$	149	$	108