15. Income Taxes

The components of income tax (benefit) expense were as follows:



	Successor									Predecessor
	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019			Two Months Ended September 30, 2018			One Month Ended July 31, 2018			Seven Months Ended July 31, 2018
Income (loss) before income tax expense (benefit)	$	107		$	(243	)	$	41		$	(83	)	$	202

Income tax expense (benefit)	$	24		$	(52	)	$	(979	)	$	(19	)	$	48

Effective tax rate⁽¹⁾	22.3		%	21.5		%	(2,377.1		)%	23.1		%	23.8		%


⁽¹⁾	Effective tax rate is calculated using whole numbers.

For the three and nine months ended September 30, 2019, the effective tax rate differed from the statutory federal rate of 21% primarily due to permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m) and nondeductible meals and entertainment expenses, as well as other recurring items such as the state tax benefit.

For the two months ended September 30, 2018, the effective tax rate differed from the statutory federal rate of 21% primarily due to the reversal of the valuation allowance associated with the net operating loss (“NOL”) carryforwards of WMIH, permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m) and nondeductible meals and entertainment expenses.

For the one and seven months ended July 31, 2018 in the predecessor period, the effective tax rate differed slightly from the statutory federal rate of 21% primarily due to state tax provision, adjustments in connection with the remediation of the Predecessor’s uncertain tax position and various permanent differences, including nondeductible transaction costs in connection with the Merger.