Question
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:
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. | $12,283 | $10,626 | $5,925 |
Non-U.S. | 482 | 492 | 437 |
Total | $12,765 | $11,118 | $6,362 |
Income tax expense/(benefit) consisted of the following:
Years ended December 31 ($ millions) | 2018 | 2017 | 2016 |
---|---|---|---|
Current tax expense | |||
U.S. federal | $1,967 | $1,340 | $1,253 |
Non-U.S. | $169 | $149 | $133 |
U.S. State | 97 | 23 | 15 |
Total current | $2,233 | $1,512 | $1,401 |
Deferred tax expense | |||
U.S. federal | $(1,096) | $224 | $(598) |
Non-U.S. | $(4) | $3 | $(4) |
U.S. State | 5 | (6) | (44) |
Total deferred | $(1,095) | $221 | $(646) |
a. What is the amount of income tax expense reported by Boeing each year?
Year | ($ millions) |
---|---|
2018 | Answer |
2017 | Answer |
2016 | Answer |
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 | Answer |
2017 | Answer |
2016 | Answer |
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 |
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