397 Analyzing and Interpreting Income Tax Disclosures The income tax footnote to the 2018 financial statements for Boeing follows. The components of income before tax were: Years ended December 31 ($ millions) 2018 2017 2016 U.S. $11,166 $9,660 $5,386 Non-U.S. 438 447 Total $11,604 $10,107 $5,783 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal $1,873 $1,276 $1,193 Non-U.S. $169 $149 $133 U.S. State 15 Total current $2,139 $1,448 $1,341 Deferred tax expense U.S. federal $(996) $204 $(544) Non-U.S. $(4) $3 $(4) U.S. State (6) (44) Total deferred $(995) $201 $(592) 97 23 5 a. What is the amount of income tax expense reported by Boeing each year? Year ($ millions) 2018 $ 0 2017 $ 2016 $ 0 0 b. What percentage of total tax expense is currently payable for each year? Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 096 2017 096 2016 096 c. What is Boeing's effective (average) tax rate for each year? Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 2017 2016 096 096 096 d. Use the pretax information to determine the effective tax rate for U.S. and Non-U.S. operations for each year. Round percentage to one decimal place (example: 0.7345 = 73.5%). Year U.S. Non-U.S. 2018 096 096 2017 096 096 2016 096 096 e. Determine the cash tax rate for U.S. operations for each year. Hint: Current tax expense is paid in cash. Round percentage to one decimal place (example: 0.7345 = 73.5%). Year 2018 0 % 096 2016 096 2017