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