|6 Months Ended|
Jun. 30, 2018
|Income Tax Disclosure [Abstract]|
|Income Taxes [Text Block]||
NOTE 7: INCOME TAXES
During the second quarter of 2018, we adjusted our provisional tax estimates related to the U.S. Tax Cuts and Jobs Act (Tax Reform) that we recorded in the fourth quarter of 2017 to reflect the impact of additional analysis related to the transition tax liability. Our accounting remains incomplete as of the second quarter of 2018 and will be refined throughout 2018 based on our ongoing analysis of data and tax positions along with new guidance from regulators and interpretation of the law. Our estimated annual effective tax rate for the first six months of 2018 includes provisional tax estimates for certain Tax Reform provisions related to foreign-derived intangible income and low-taxed intangible income. We expect that these provisions will be clarified by additional analysis and regulatory guidance, and the clarification could impact our estimated annual effective tax rate.
Our effective income tax rate was 10.2% in the first six months of 2018 compared to 31.2% in the first six months of 2017. Tax Reform reduced the U.S. statutory federal tax rate from 35.0% to 21.0%, which favorably impacted our effective tax rate in the first six months of 2018 by approximately eight percentage points. Further, the Tax Reform provisions related to foreign-derived intangible income favorably impacted our effective tax rate by approximately three percentage points, and the provision related to low-taxed intangible income and the repeal of the domestic manufacturing deduction each unfavorably impacted our effective tax rate by approximately one percentage point. The decrease in the first six months of 2018 was also driven by one-time items, primarily associated with the $822 million tax expense in the second quarter of 2017 due to our divestiture of ISecG, which increased our effective tax rate in the first six months of 2017 by approximately nine percentage points, and the adjustment to our provisional estimates for Tax Reform in the first six months of 2018, which reduced our effective tax rate by approximately two percentage points.
No definition available.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef