Quarterly report pursuant to Section 13 or 15(d)

INCOME TAXES

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INCOME TAXES
 3 Months Ended
Mar. 29, 2020
Income Tax Disclosure [Abstract]  
Income Tax Disclosure
NOTE 6. INCOME TAXES
Our effective tax rate for the three months ended March 29, 2020, was 19.4 percent. Our effective tax rate for the three months ended March 31, 2019, was 20.8 percent and contained immaterial discrete items.
The three months ended March 29, 2020, contained $18 million of favorable net discrete tax items, primarily due to tax changes within India's 2020-2021 Union Budget of India (India Tax Law Change) passed in March of 2020. The India Tax Law Change eliminated the dividend distribution tax and replaced it with a lower rate withholding tax as the burden shifted from the dividend payor to the dividend recipient for a net favorable income statement impact of $35 million, or $0.23 per share.
The India Tax Law Change resulted in the following adjustments to the Income Statement in the first quarter of 2020:
March 29,
2020
In millions Favorable (Unfavorable)
Equity, royalty and interest income from investees $ 37   
Income tax expense (1)
17   
Less: Net income attributable to noncontrolling interests (19)  
Net income statement impact $ 35   
(1) The adjustment to "Income tax expense" includes $15 million of discrete items.