INCOME TAXES	3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 17—INCOME TAXES During the three months ended March 31, 2019, we recognized an income tax benefit of $21 million (effective tax rate of 26.9%), compared to tax expense of $21 million (effective tax rate of 38.2%) for the three months ended March 31, 2018. Our provision for the first quarter 2019 benefitted from the settlement of a customer claim ($18 million) and a favorable court ruling on tax matters ($16 million) offset by nondeductible, state and other expenses ($30 million). Prior to the Combination, we used the discrete-period method to compute our interim tax provision, due to significant variations in the relationship between income tax expense and pre-tax accounting income or loss. Consequently, the actual effective rate was reported during the first quarter 2018. The discrete-period method is applied when the application of the estimated annual effective tax rate is impractical, because it is not possible to reliably estimate the annual effective tax rate. Prior to the Combination, CB&I used the estimated annual effective tax rate approach to calculate its interim tax provision related to ordinary income. Beginning in the third quarter of 2018, we began utilizing an estimated annual effective tax rate approach on a combined company basis. During the first quarter of 2019, our unrecognized tax benefits decreased $16 million, due to the favorable court ruling referenced above. We do not anticipate significant changes to this balance in the next 12 months.

INCOME TAXES

3 Months Ended

Mar. 31, 2019

NOTE 17—INCOME TAXES

During the three months ended March 31, 2019, we recognized an income tax benefit of $21 million (effective tax rate of 26.9%), compared to tax expense of $21 million (effective tax rate of 38.2%) for the three months ended March 31, 2018.

Our provision for the first quarter 2019 benefitted from the settlement of a customer claim ($18 million) and a favorable court ruling on tax matters ($16 million) offset by nondeductible, state and other expenses ($30 million).

Prior to the Combination, we used the discrete-period method to compute our interim tax provision, due to significant variations in the relationship between income tax expense and pre-tax accounting income or loss. Consequently, the actual effective rate was reported during the first quarter 2018. The discrete-period method is applied when the application of the estimated annual effective tax rate is

impractical, because it is not possible to reliably estimate the annual effective tax rate. Prior to the Combination, CB&I used the estimated annual effective tax rate approach to calculate its interim tax provision related to ordinary income. Beginning in the third quarter of 2018, we began utilizing an estimated annual effective tax rate approach on a combined company basis.

During the first quarter of 2019, our unrecognized tax benefits decreased $16 million, due to the favorable court ruling referenced above. We do not anticipate significant changes to this balance in the next 12 months.