Facebook Inc. has set aside $3 billion for a settlement with the Federal Trade Commission over its consumer data privacy practices.

Menlo Park, California-based Facebook estimated a “probable loss” of $3 billion to $5 billion due to an ongoing FTC inquiry into its data protection and privacy practices in its first-quarter results 8-K filing Wednesday.

“The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome,” Facebook's filing stated. A fine against Facebook would not be tax deductible, and the company stated its operating margin “would have been 20 percentage points higher, our effective tax rate would have been 14 percentage points lower” without the estimated settlement.