Income Taxes |
6 Months Ended |
|---|---|
Jun. 28, 2019 | |
| Income taxes | |
| Income Taxes | INCOME TAXES
The Company recorded income taxes of $421 million (13.8 percent effective tax rate) and $611 million (20.7 percent effective tax rate) during the three months ended June 28, 2019 and June 29, 2018, respectively. The Company recorded income taxes of $943 million (17.9 percent effective tax rate) and $1,156 million (23.6 percent effective tax rate) during the six months ended June 28, 2019 and June 29, 2018, respectively.
The Company's effective tax rates for the three and six months ended June 28, 2019 and June 29, 2018 vary from the statutory U.S. 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 statutory U.S. rate.
The Company's effective tax rates for the three and six months ended June 28, 2019 included $199 million of tax benefit recorded as result of CCBA no longer qualifying as a discontinued operation.
The Company's effective tax rates for the three and six months ended June 29, 2018 included $42 million of tax benefit and $134 million of tax expense, respectively, 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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