Income Taxes | 9 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Income Taxes | |
| Income Taxes | 14. Income Taxes
In the second quarter of 2011, a portion of Devon's foreign earnings were no longer deemed to be permanently reinvested in accordance with accounting principles generally accepted in the United States. Accordingly, Devon recognized $725 million of deferred tax expense and $19 million of current income tax expense during the second quarter of 2011 related to assumed repatriations of such earnings under current U.S. tax law. These earnings were primarily related to the gains generated from Devon's International divestiture transactions. Excluding the $744 million of tax expense, Devon's effective income tax rate was 33% in the first nine months of 2011.
Also, in the second and third quarters of 2010, Devon recognized $52 million and $23 million, respectively, of deferred income tax expense related to assumed repatriations of earnings in accordance with accounting principles generally accepted in the United States. Excluding these amounts, Devon's effective income tax rate was 34% in the first nine months ended of 2010. |