Income Taxes |
3 Months Ended |
|---|---|
Mar. 29, 2019 | |
| Income taxes | |
| Income Taxes |
INCOME TAXES
The Company recorded income taxes from continuing operations of $486 million (22.8 percent effective tax rate) and $506 million (27.6 percent effective tax rate) during the three months ended March 29, 2019 and March 30, 2018, respectively.
The Company's effective tax rate for the three months ended March 29, 2019 and March 30, 2018 varies from the statutory federal income tax rate of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, along with the tax benefits of having significant operations outside the United States and significant earnings generated in investments accounted for under the equity method of accounting, both of which are generally taxed at rates lower than the U.S. statutory rate.
The Company's effective tax rate for the three months ended March 30, 2018 included $176 million of additional tax expense to adjust our provisional tax estimate recorded as of December 31, 2017, related to the Tax Reform Act signed into law on December 22, 2017.
On September 17, 2015, the Company received a Statutory Notice of Deficiency from the IRS for the tax years 2007 through 2009, after a five-year audit. Refer to Note 9.
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