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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
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
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