Income Taxes (Notes)

9 Months Ended

Sep. 30, 2016

Income Taxes [Abstract]

Income Taxes

Income Taxes

During the three months ended September 30, 2016, we recorded a total income tax benefit of $59 million on pre-tax losses of $52 million, resulting in an effective tax rate of 114.3%. Our effective tax rate was primarily impacted by a $29 million tax benefit recognized during the third quarter reflecting the beneficial use of an Argentinian tax treaty that reduces the taxation of royalty payments for intellectual property. Additionally, we recognized third quarter taxable losses in our United States operations in which we recorded tax benefits at the U.S. statutory rate, offset by third quarter taxable income in our foreign operations in which the corresponding tax expenses are applied at lower statutory rates in certain jurisdictions.

During the three months ended September 30, 2015, we recorded a total income tax benefit $37 million on pre-tax losses of $90 million, resulting in an effective tax rate of 40.8%. Our effective tax rate was positively impacted by lower tax rates in certain foreign jurisdictions and was impacted by the tax effects of the $381 million of impairments and other charges during the period, exacerbated by our lower level of pre–tax earnings during the period.