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Income Taxes
3 Months Ended
Mar. 31, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
The effective tax rate for the three months ended March 31, 2018 and 2017 was 26.8% and 32.5%, respectively. The 2018 effective tax rate is lower primarily due to the lower U.S. tax rate, and related provisions of the Act. The effective tax rate for the three months ended March 31, 2018 and 2017 includes a $2 million and $4 million charge, respectively, from the write-off of deferred tax assets associated with the expiration of out-of-the-money vested stock options and the vesting of restricted stock and a $3 million and $4 million benefit, respectively, from the resolution of certain tax examinations.
The provisional amounts recorded under Staff Accounting Bulletin No. 118 in 2017 to reflect the estimated impact of the Act have not been adjusted in the first quarter of 2018.
As is the case with other large corporations, our tax returns are examined by tax authorities in the U.S. and other global taxing jurisdictions in which we have operations. As a result, it is reasonably possible that the amount of our unrecognized tax benefits will decrease in the next 12 months, and we expect this change could be up to 25% of our unrecognized tax benefits.
The IRS examinations of our consolidated U.S. income tax returns for tax years prior to 2013 are closed to audit; however, various post-2006 U.S. state and local tax returns are still subject to examination. In Canada, the examination of our tax filings prior to 2012 are closed to audit, except for the pending application of legal principles to specific issues arising in earlier years. Other significant jurisdictions include France, which is closed to audit through the end of 2014, Germany, which is closed to audit through the end of 2012 and the UK, which, except for an item under appeal, is closed to audit through the end of 2015. We have other less significant tax filings currently subject to examination.