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Taxation
9 Months Ended
Sep. 30, 2017
Income Tax Disclosure [Abstract]  
Taxation
Taxation 

For the three and nine months ended September 30, 2017, the effective tax rate on income from continuing operations was 2% (2016: 38%) and 4% (2016: 246%), respectively.

The effective tax rate for the three and nine months ended September 30, 2017 was affected by the combined impact of the relative quantum of the profit before tax for the period by jurisdiction as well as significant acquisition and integration costs. Additionally, certain discrete events occurred during the year which contributed to the low effective tax rate, including a tax benefit associated with the filing of the US returns and the reversal of prior period income tax reserves.

The effective tax rate for the three and nine months ended September 30, 2016 was affected by the combined impact of the relative quantum of the profit before tax by jurisdiction for the period and of the reversal of deferred tax liabilities from the acquisition of Baxalta (including in higher tax territories such as the U.S.) of inventory and intangible assets amortization as well as significant acquisition and integration costs. Additionally, the impact of certain items that arose from the Baxalta acquisition caused significant variations in the estimated effective rate during 2016. As a result, the Company applied a permitted exception to the general rule by including the actual income tax effect for certain portions of its business discretely when it calculated the provision for income taxes for the three and nine months ended September 30, 2016.