Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The components of income tax expense for 2021, 2020 and 2019, are as follows:

(in millions)	2021			2020			2019
Current income tax expense:
Federal	$	2,031		$	720		$	735
State and local		226			86			109
Foreign		576			589			400
Total net current income tax expense		2,833			1,395			1,244
Deferred income tax expense (benefit):
Federal		(935	)		(66	)		15
State and local		(150	)		6			7
Foreign		220			(97	)		(5	)
Total net deferred income tax expense (benefit)		(865	)		(157	)		17
Total income tax expense	$	1,968		$	1,238		$	1,261

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 NCI:

(in millions)	2021		2020		2019
Domestic	$	5,030	$	3,805	$	3,766
Foreign		2,839		2,365		1,971
Total	$	7,869	$	6,170	$	5,737

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 21% for 2021, 2020 and 2019 is as follows:

(in millions)	2021					2020					2019
Statutory income tax expense	$	1,653		21	%	$	1,296		21	%	$	1,205		21	%
Increase (decrease) in income taxes resulting from:
State and local taxes (net of federal benefit)		121		2			81		1			96		2
Impact of federal, foreign, state, and local tax rate changes on deferred taxes		125		2			78		1			5		—
Stock-based compensation awards		(43	)	(1	)		(36	)	—			(23	)	—
Charitable Contribution		—		—			(128	)	(2	)		—		—
Effect of foreign tax rates		32		—			(100	)	(2	)		(76	)	(1	)
Other		80		1			47		1			54		—
Income tax expense	$	1,968		25	%	$	1,238		20	%	$	1,261		22	%

Components of Deferred Income Tax Assets and Liabilities

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

	December 31,
(in millions)	2021			2020
Deferred income tax assets:
Compensation and benefits	$	649		$	295
Unrealized investment losses		—			20
Loss carryforwards		88			80
Capitalized costs		764			—
Other		898			659
Gross deferred tax assets		2,399			1,054
Less: deferred tax valuation allowances		(30	)		(26	)
Deferred tax assets net of valuation allowances		2,369			1,028
Deferred income tax liabilities:
Goodwill and acquired indefinite-lived intangibles		4,245			4,096
Acquired finite-lived intangibles		144			159
Unrealized investment gains		71			—
Other		422			142
Gross deferred tax liabilities		4,882			4,397
Net deferred tax (liabilities)	$	(2,513	)	$	(3,369	)

Reconciliation of Gross Unrecognized Tax Benefits

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

(in millions)	2021			2020			2019
Balance at January 1	$	940		$	900		$	795
Additions for tax positions of prior years		18			31			99
Reductions for tax positions of prior years		(4	)		(8	)		(27	)
Additions based on tax positions related to current year		69			60			47
Lapse of statute of limitations		—			(3	)		(4	)
Settlements		(1	)		(40	)		(10	)
Balance at December 31	$	1,022		$	940		$	900