Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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)	2021		2020		2019
Current:
Federal	$	172	$	241	$	157
State	142		122		86
Non-U.S.	326		310		357
Total current expense	640		673		600
Deferred:
Federal	(98)		(168)		(6)
State	(61)		5		33
Non-U.S.	(3)		(31)		(157)
Total deferred expense (benefit)	(162)		(194)		(130)
Total income tax expense (benefit)	$	478	$	479	$	470

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,
	2021		2020		2019
U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Changes from statutory rate:
State taxes, net of federal benefit	2.2		3.8		3.4
Tax-exempt income	(1.1)		(1.3)		(1.5)
Business tax credits(1)	(4.1)		(5.1)		(5.4)
Foreign tax differential	0.1		(0.8)		(0.1)
Foreign legal entity restructuring	—		—		(4.3)
Foreign tax credit (benefits)/ limitations	(1.9)		(0.9)		2.2
Litigation expense	—		—		1.6
Other, net	(1.1)		(0.2)		0.4
Effective tax rate	15.1	%	16.5	%	17.3	%

(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)	2021		2020
Deferred tax assets:
Other amortizable assets	$	323	$	385
Tax credit carryforwards	526		564
Lease obligations	217		243
Deferred compensation	158		110
Restructuring charges and other reserves	88		114
NOL and other carryforwards	118		101
Pension plan	28		56
Foreign currency translation	16		3
Unrealized losses on investment securities, net	17		—
Total deferred tax assets	1,491		1,576
Valuation allowance for deferred tax assets	(250)		(295)
Deferred tax assets, net of valuation allowance	$	1,241	$	1,281
Deferred tax liabilities:
Fixed and intangible assets	$	601	$	765
Investment basis differences	200		269
Right-of-use Assets	172		187
Unrealized gains on investment securities, net	—		306
Other	58		51
Total deferred tax liabilities	$	1,031	$	1,578

Summary of Valuation Allowance

The table below summarizes the deferred tax assets and related valuation allowances recognized as of December 31, 2021:

(In millions)	Deferred Tax Asset		Valuation Allowance		Expiration
Other amortizable assets	$	323	$	(185)	None
Tax credits	526		—		2033-2041
NOLs - Non-U.S.	92		(45)		2028-2041, None
NOLs - U.S.	22		(16)		2022-2040
Other carryforwards	4		(4)		None

Summary of Income Tax Contingencies

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

	December 31,
(In millions)	2021		2020		2019
Beginning balance	$	308	$	149	$	108
Decrease related to agreements with tax authorities	(130)		—		(17)
Increase related to tax positions taken during current year	50		47		13
Increase related to tax positions taken during prior years	42		137		49
Decreases related to a lapse of the applicable statute of limitations	(18)		(25)		(4)
Ending balance	$	252	$	308	$	149