Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 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 2010.
The Company made federal and state income tax payments, net of refunds, in the amount of $42 million for the nine months ended September 30, 2019. These payments exclude $188 million of tax payments related to assumed liabilities in connection with the La Quinta acquisition. During the nine months ended September 30, 2018, the former Parent paid $27 million of federal and state income tax liabilities related to the Company. Additionally, the Company made foreign income tax payments, net of refunds, in the amount of $11 million and $9 million for the nine months ended September 30, 2019 and 2018.
The Company’s effective tax rates were 31.8% and 28.4% during the three months ended September 30, 2019 and 2018, respectively. The increase is primarily due to a non-deductible payment we agreed to make in 2019 related to the La Quinta acquisition.
The Company’s effective tax rates were 27.9% and 28.5% during the nine months ended September 30, 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, partially offset by a non-deductible payment we agreed to make in 2019 related to the La Quinta acquisition and a tax benefit associated with stock-based compensation during 2018.
|