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Income Taxes
9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
6. INCOME TAXES

Income tax provisions for interim (quarterly) periods are based on an estimated annual effective income tax rate calculated separately from the effect of significant, infrequent or unusual items. Income tax expense was $16 million for the three months ended September 30, 2015 compared to a benefit of $19 million for the three months ended September 30, 2014. The increase in income tax expense was primarily driven by the increase in earnings in continuing operations in the the three months ended September 30, 2015 compared to the three months ended September 30, 2014, and $13 million and $9 million of benefits from IRS settlements and valuation releases, respectively, in the three months ended September 30, 2014, offset by $17 million of income tax benefits for audit settlements in foreign jurisdictions in the three months ended September 30, 2015.

Income tax expense was $50 million for the nine months ended September 30, 2015 compared to $14 million for the nine months ended September 30, 2014. The increase in income tax expense was primarily driven by the increase in earnings in continuing operations excluding the UK London pension settlement discussed below and $13 million and $9 million of benefits from IRS settlements and valuation releases, respectively, in the nine months ended September 30, 2014, offset by $17 million of income tax benefits for audit settlements in foreign jurisdictions in the nine months ended September 30, 2015. During the nine months ended September 30, 2015, there was no tax benefit recorded on the $427 million charge related to the settlement of the UK London pension plan due to a valuation allowance against deferred tax assets in the United Kingdom. Refer to Note 8, “Employee Benefit Plans.” for additional discussion on the settlement of the UK London pension plan.