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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:

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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. $12,841 $11,109 $6,194 Non-U.S. 504 514 457 Total $13,345 $11,623 56,651 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal $2,248 $1,531 $1,432 Non-US $169 $149 $133 U.S. State 97 23 15 Total current $2.514 $1.703 $1,580 Deferred tax expense U.S. federal $(1.145) $235 $(626) Non-U.S. $(4) $3 $(4) U.S. State 5 (6) (44) Total deferred $(1.144) $232 $(674) a. What is the amount of income tax expense reported by Boeing each year? Year (5 millions) 2018 5 1,370 2017 $ 1,935 2016 5 906 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 183.5 % 2017 88 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 183.5 % 2017 88% 2016 174.4% 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 10.3% 2017 16.6% 2016 13.6 % d. Use the pretax information to determine the effective tax rate for U.S. federal and Non-U.S. operations for each year. Round percentage to one decimal place (example: 0.7345 = 73,5%). Year 2018 2017 2016 U.S. federal 9.3% x 16.19 X 12.5% X Non-U.S. 32.7% 29.6% 28.2% 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 18.3 2017 2016 22.4 14 Check

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