Income Taxes

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The effective tax rates for the three months ended March 31, 2022 and 2021 were 24% ($33 million tax expense) and 36% ($60 million tax expense), respectively. The decrease in Nielsen’s income tax expense for the three months ended March 31, 2022 as compared to the three months ended March 31, 2021 was primarily driven by a decrease in earnings in the current period as well as the absence of the unfavorable impact of deferred tax revaluation recognized in the prior period. Nielsen’s effective tax rate may fluctuate from time to time due to geographic mix of earnings.

The estimated liability for unrecognized tax benefits as of March 31, 2022 is $174 million. If the balance of the Company’s tax positions is sustained by the taxing authorities in the Company’s favor, the Company’s effective tax rate would be reduced in future periods by $26 million.

The Company files numerous consolidated and separate income tax returns in the U.S. Federal jurisdiction and in many state and foreign jurisdictions. The Company is no longer subject to U.S. Federal tax examination for periods prior to 2017. The tax positions and related attributes from 2017 onward are open to examination. In addition, the Company has subsidiaries in various states, provinces and countries that are currently under audit for years ranging from 2011 through 2021, and the tax positions and related attributes in those particular years are also open to examination.

To date, the Company is not aware of any material adjustments not already accrued related to any of the current Federal, state or foreign audits under examination.