Income Taxes

The following table presents the Company's income tax expense and effective income tax rate for the periods presented:



	Three months ended March 31,
(in millions)	2017			2016
Income tax expense	$	12		$	5
Effective income tax rate	13		%	(500		)%

The effective tax rates for the three months ended March 31, 2017 and 2016 were different from the statutory tax rate as a result of the Company recording tax expense on its foreign earnings, but not on its domestic earnings, as a result of the valuation allowance recorded in the U.S. The Company’s tax expense in both periods was also impacted by the Company not recording tax expense on noncontrolling interests from pass through entities. Additionally, the near breakeven pretax loss for the period ended March 31, 2016 amplifies variations between the effective tax rate and the statutory tax rate in the same period.

The Company's liability for unrecognized tax benefits was approximately $237 million as of March 31, 2017. The Company anticipates it is reasonably possible that the liability for unrecognized tax benefits may decrease by up to $122 million over the next twelve months beginning March 31, 2017 as a result of the possible closure of federal tax audits, potential settlements with certain states and foreign countries and the lapse of the statute of limitations in various state and foreign jurisdictions.