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Income Taxes
9 Months Ended
Sep. 29, 2017
Income Taxes [Abstract]  
Income Taxes
11. Income Taxes
 
The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction, which is the Company’s primary tax jurisdiction, and various state and foreign jurisdictions. At September 29, 2017, the statutes of limitations for the Company’s U.S. Federal income tax returns for the years ended December 31, 2010 through 2015 were open. The U.S. Internal Revenue Service (IRS) commenced audits of the Company’s U.S. Federal income tax returns for the years ended 2012 and 2013. The Company cannot predict the outcome of the audits at this time.
 
The effective income tax rate for the quarterly period ended September 29, 2017 was approximately 0% and therefore not meaningful because the Company recorded an income tax benefit related to the goodwill impairment charge at Vertex Aerospace. Excluding the goodwill impairment charge and related income tax benefits, the effective tax rate would have increased to 24.9% compared to 16.1% for the quarterly period ended September 23, 2016 due to $17 million of tax benefits for the reversal of previously accrued amounts in the quarterly period ended September 23, 2016 related to various U.S. Federal, foreign and state tax matters that did not recur.
 
The effective income tax rate for the year-to-date period ended September 29, 2017 increased to 22.1% from 21.7% for the same period last year. Excluding the goodwill impairment charge and related income tax benefits, the effective tax rate would have increased to 23.8%. The increase in the effective tax rate is primarily due to prior year tax benefits of $21 million for the reversal of certain previously accrued amounts related to various U.S. Federal, foreign and state tax matters that did not recur, which were partially offset by a lower effective tax rate on foreign earnings.
 
At September 29, 2017, the Company anticipates that unrecognized tax benefits will decrease by approximately $8 million over the next 12 months due to the potential resolution of unrecognized tax benefits involving several jurisdictions and tax periods. The actual amount of the decrease over the next 12 months could vary significantly depending on the ultimate timing and nature of any settlements.
 
Current and non-current income taxes payable include accrued potential interest of $13 million ($8 million after income taxes) at September 29, 2017 and $11 million ($7 million after income taxes) at December 31, 2016, and potential penalties of $9 million at September 29, 2017 and $8 million at December 31, 2016.