Income Taxes

9 Months Ended

Sep. 30, 2019

NOTE H – INCOME TAXES

Our effective tax rate from continuing operations is presented below:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Effective tax rate from continuing operations	(38.7	)%	5.3	%	(1.6	)%	(14.1	)%

The change in our reported tax rates for the third quarter and first nine months of 2019, as compared to the same periods in 2018, relates primarily to the impact of certain receipts and charges that are taxed at different rates than our effective tax rate. These receipts and charges include intangible asset impairment charges, acquisition-related items, restructuring items, litigation-related items as well as certain discrete tax items primarily related to share-based payments and the 2018 settlement of our transfer pricing dispute with the Internal Revenue Service (IRS) for the 2001 through 2010 tax years.

As of September 30, 2019, we had $405 million of gross unrecognized tax benefits, of which a net $320 million, if recognized, would affect our effective tax rate. As of December 31, 2018, we had $427 million of gross unrecognized tax benefits, of which a net $332 million, if recognized, would affect our effective tax rate.

It is reasonably possible that within the next 12 months we will resolve multiple issues with foreign, federal and state taxing authorities, resulting in a reduction in our balance of unrecognized tax benefits of up to $99 million.