Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

The components of income tax expense for 2015, 2014 and 2013, are as follows:

(in millions)	2015			2014			2013
Current income tax expense:
Federal	$	937		$	923		$	869
State and local		74			54			39
Foreign		395			258			307
Total net current income tax expense		1,406			1,235			1,215
Deferred income tax expense (benefit):
Federal		(13	)		(73	)		(68	)
State and local		(19	)		(9	)		13
Foreign		(124	)		(22	)		(138	)
Total net deferred income tax expense (benefit)		(156	)		(104	)		(193	)
Total income tax expense	$	1,250		$	1,131		$	1,022

Components of Income before Taxes, Less Net Income (Loss) Attributable to Noncontrolling Interests

Income tax expense has been based on the following components of income before taxes, less net income (loss) attributable to noncontrolling interests:

(in millions)	2015		2014		2013
Domestic	$	2,840	$	2,946	$	2,814
Foreign		1,755		1,479		1,140
Total	$	4,595	$	4,425	$	3,954

Reconciliation of Income Tax Expense with Expected Federal Income Tax Expense

A reconciliation of income tax expense with expected federal income tax expense computed at the applicable federal income tax rate of 35% is as follows:

(in millions)	2015			%			2014			%			2013			%
Statutory income tax expense	$	1,608			35	%	$	1,549			35	%	$	1,383			35	%
Increase (decrease) in income taxes resulting from:
State and local taxes (net of federal benefit)		42			1			51			1			39			1
Impact of foreign, state, and local tax rate changes on deferred taxes		(45	)		(1	)		(4	)		—			(69	)		(2	)
Effect of foreign tax rates		(385	)		(8	)		(434	)		(10	)		(329	)		(8	)
Other		30			—			(31	)		—			(2	)		—
Income tax expense	$	1,250			27	%	$	1,131			26	%	$	1,022			26	%

Components of Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities are shown below

	December 31,
(in millions)	2015			2014
Deferred income tax assets:
Compensation and benefits	$	372		$	323
Unrealized investment losses		114			157
Loss carryforwards		98			47
Foreign tax credit carryforwards		83			40
Other		235			253
Gross deferred tax assets		902			820
Less: deferred tax valuation allowances		(20	)		(29	)
Deferred tax assets net of valuation allowances		882			791
Deferred income tax liabilities:
Goodwill and acquired indefinite-lived intangibles		5,588			5,616
Acquired finite-lived intangibles		45			65
Other		80			89
Gross deferred tax liabilities		5,713			5,770
Net deferred tax (liabilities)	$	(4,831	)	$	(4,979	)

Reconciliation of Gross Unrecognized Tax Benefits

The following tabular reconciliation presents the total amounts of gross unrecognized tax benefits:

	Year ended December 31,
(in millions)	2015			2014			2013
Balance at January 1	$	379		$	467		$	404
Additions for tax positions of prior years		39			21			11
Reductions for tax positions of prior years		(25	)		(24	)		(5	)
Additions based on tax positions related to current year		75			85			67
Lapse of statute of limitations		(2	)		(2	)		—
Settlements		—			(168	)		(12	)
Positions assumed in acquisitions		—			—			2
Balance at December 31	$	466		$	379		$	467