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. $11,166 $9,660 $5,386
Non-U.S. 438 447 397
Total $11,604 $10,107 $5,783
Income tax expense/(benefit) consisted of the following:
Years ended December 31 ($
millions) 2018 2017 2016
Current tax expense
U.S. federal $1,873 $1,276 $1,193
Non-U.S. $169 $149 $133
U.S. State 97 23 15
Total current $2,139 $1,448 $1,341
Deferred tax expense
U.S. federal $(996) $204 $(544)
Non-U.S. $(4) $3 $(4)
U.S. State 5 (6) (44)
Total deferred $(995) $201 $(592)

a. What is the amount of income tax expense reported by Boeing each year?
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r ($ millions)
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2018 Answer
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b. What percentage of total tax expense is currently payable for each year?
Round percentage to one decimal place (example: 0.7345 = 73.5%).
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2018 Answer
0
2017 Answer
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2016 Answer
c. What is Boeing’s effective (average) tax rate for each year?
Round percentage to one decimal place (example: 0.7345 = 73.5%).
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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%). 
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r U.S. federal Non-U.S.
0 0
2018 Answer Answer
0 0
2017 Answer Answer
0 0
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%).
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2018 Answer
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