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.	$13,958	$12,075	$6,733
Non-U.S.	548	559	496
Total	$14,506	$12,634	$7,229

Income tax expense/(benefit) consisted of the following:

Years ended December 31 ($ millions)	2018	2017	2016
Current tax expense
U.S. federal	$2,435	$1,659	$1,551
Non-U.S.	$169	$149	$133
U.S. State	97	23	15
Total current	$2,701	$1,831	$1,699
Deferred tax expense
U.S. federal	$(1,245)	$255	$(680)
Non-U.S.	$(4)	$3	$(4)
U.S. State	5	(6)	(44)
Total deferred	$(1,244)	$252	$(728)

a. What is the amount of income tax expense reported by Boeing each year?

Year	($ millions)
2018	$
2017	$
2016	$

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	%
2017	%
2016	%

c. What is Boeings effective (average) tax rate for each year? Round percentage to one decimal place (example: 0.7345 = 73.5%).

Year
2018	answer%
2017	answer%
2016	answer%

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	U.S. federal	Non-U.S.
2018	Answer %	Answer %
2017	Answer%	Answer %
2016	Answer %	Answer %

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	Answer %
2017	Answer %
2016	Answer %