Income Taxes |
3 Months Ended |
|---|---|
Mar. 31, 2019 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
Income Taxes
The Company files income tax returns in the U.S. federal and state jurisdictions, as well as in foreign jurisdictions. Through May 31, 2018, the Company was part of a consolidated U.S. federal income tax return and consolidated and combined state returns with its former Parent. The Company is no longer subject to U.S. federal income tax examinations, for years prior to 2015, as part of the former Parent’s filings. The Company is no longer subject to state and local, or foreign, income tax examinations for years prior to 2009.
The Company made federal and state income tax payments, net of refunds, in the amount of $1 million for the three months ended March 31, 2019. During the three months ended March 31, 2018, the former Parent paid $11 million of federal and state income tax liabilities related to the Company, which is reflected in its Condensed and Consolidated Financial Statements as an increase in former Parent’s net investment. Additionally, the Company made foreign income tax payments, net of refunds, in the amount of $5 million and $2 million for the three months ended March 31, 2019 and 2018.
The Company’s effective tax rates were 19.2% and 29.1% during the three months ended March 31, 2019 and 2018, respectively. The decrease was primarily related to the tax impact from a settlement with state taxing authorities in the first quarter of 2019.
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