Income Taxes |
9 Months Ended |
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Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We have determined that because small changes in estimated ordinary annual income would result in significant changes in the estimated annual effective tax rate, the use of a discrete effective tax rate is appropriate for determining the quarterly provision for income taxes. The discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on that basis. We will continue to use this method each quarter until the annual effective tax rate method is deemed appropriate. For the third quarter and the first nine months of 2019, we had a tax expense of $31 million and $76 million, respectively, on a loss before income taxes of $784 million and $1.5 billion, respectively, compared to the third quarter and the first nine months of 2018 tax expense of $22 million and $80 million, respectively on a loss before income taxes of $172 million and $615 million, respectively. The sum of goodwill impairment, prepetition charges (prior to Petition Date), reorganization items (after Petition Date), asset write-downs and other, transformation, facility restructuring and severance charges, and the net gain on sale of businesses resulted in no significant tax benefit for the third quarter of 2019 and no significant tax benefit in the first nine months of 2019, respectively. The tax expense for the third quarter and the first nine months of 2019 and 2018 also includes withholding taxes, minimum taxes and deemed profit taxes that do not directly correlate to ordinary income or loss. We are routinely under tax examination in various jurisdictions. We cannot predict the timing or outcome regarding resolution of these tax examinations or if they will have a material impact on our financial statements. We continue to anticipate a possible reduction in the balance of uncertain tax positions of approximately $12 million in the next twelve months due to expiration of statutes of limitations, settlements and/or conclusions of tax examinations.
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