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 $6,651 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal $2,248 $1,531 $1,432 Non-U.S. $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 $(674) a. What is the amount of income tax expense reported by Boeing each year? Year ($ millions) 2018 $ 0 2017 $ 0 2016 $ 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 0 % 2017 0 % 0 % 2016 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 0 % 0 % 2017 2016 0 % 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 0 % 0 % 0 % 0 % 2017 2016 0 % 0 % 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 % 2017 2016 0 % 0 % 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 $6,651 Income tax expense/(benefit) consisted of the following: Years ended December 31 ($ millions) 2018 2017 2016 Current tax expense U.S. federal $2,248 $1,531 $1,432 Non-U.S. $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 $(674) a. What is the amount of income tax expense reported by Boeing each year? Year ($ millions) 2018 $ 0 2017 $ 0 2016 $ 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 0 % 2017 0 % 0 % 2016 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 0 % 0 % 2017 2016 0 % 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 0 % 0 % 0 % 0 % 2017 2016 0 % 0 % 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 % 2017 2016 0 % 0 %
