Income taxes

The following table summarizes our Income tax expense and effective tax rates for the thirteen and thirty-nine weeks ended October 28, 2017 and October 29, 2016:



	13 Weeks Ended						39 Weeks Ended
($ In millions)	October 28, 2017			October 29, 2016			October 28, 2017			October 29, 2016
Loss before income taxes	$	(622	)	$	(152	)	$	(862	)	$	(365	)
Income tax expense	—			3			88			8
Effective tax rate	—		%	(2.0		)%	(10.2		)%	(2.2		)%

The provision for income taxes was a nominal amount for the thirteen weeks ended October 28, 2017 and a tax expense of $3 million for the thirteen weeks ended October 29, 2016.

The Company’s effective income tax rate of 0.0% for the thirteen weeks ended October 28, 2017 differed from the statutory U.S. Federal income tax rate of 35% primarily due to the effect of tax rate differentials on foreign income/(loss) and increased losses for U.S. and other jurisdictions where no tax benefits are recognized. Separately, we did not recognize any deferred tax benefits on the excess of the tax basis over the book basis in our investment in Toys-Canada as a result of the Toys-Canada deconsolidation since it is not apparent that the temporary difference will reverse in the foreseeable future.

The Company’s effective income tax rate of (2.0)% for the thirteen weeks ended October 29, 2016 differed from the statutory U.S. Federal income tax rate of 35% primarily due to the effect of tax rate differentials on foreign income/(loss) and increased losses for U.S. and other jurisdictions where no tax benefits are recognized.

The provision for income taxes for the thirty-nine weeks ended October 28, 2017 and October 29, 2016 was a tax expense of $88 million and $8 million, respectively.

The Company’s effective income tax rate of (10.2)% for the thirty-nine weeks ended October 28, 2017 differed from the statutory U.S. Federal income tax rate of 35% primarily due to the effect of tax rate differentials on foreign income/(loss), increased losses for U.S. and other jurisdictions where no tax benefits are recognized and an additional $75 million valuation allowance against the Company’s non-U.S. deferred tax assets as a result of the Company’s going concern uncertainty.

The Company’s effective income tax rate of (2.2)% for the thirty-nine weeks ended October 29, 2016 differed from the statutory U.S. Federal income tax rate of 35% primarily due to the effect of tax rate differentials on foreign income/(loss) and a $1 million tax expense related to adjustments to deferred taxes resulting from change in statutory tax rate.