Income Taxes

Effective Tax Rate

The income tax provision consisted of the following:



	Three months ended September 30,						Nine months ended September 30,
In millions, except rates	2018			2017			2018			2017
Income before income taxes	$	313		$	186		$	620		$	119
Income tax expense from continuing operations	7			1			19			3
Effective tax rate	2.2		%	0.5		%	3.1		%	2.5		%

For the three and nine months ended September 30, 2018, and 2017, NRG's overall effective tax rate was different than the statutory rate of 21% and 35%, respectively primarily due to the tax benefit for the change in valuation allowance partially offset by current state tax expense.

Uncertain Tax Benefits

As of September 30, 2018, NRG has recorded a non-current tax liability of $47 million for uncertain tax benefits from positions taken on various state income tax returns, including accrued interest. For the nine months ended September 30, 2018, NRG accrued $2 million of interest relating to the uncertain tax benefits. As of September 30, 2018, NRG had cumulative interest and penalties related to these uncertain tax benefits of $5 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense.

NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2015. With few exceptions, state and local income tax examinations are no longer open for years before 2010.