Income Taxes |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2020 | ||||
| Income Tax Disclosure [Abstract] | ||||
| 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. The Company is no longer subject to state and local, or foreign, income tax examinations for years prior to 2010.
The Company made cash income tax payments, net of refunds, of $2 million and $37 million for the six months ended June 30, 2020 and 2019, respectively. The 2019 payments exclude $188 million of tax payments related to assumed liabilities in connection with the La Quinta acquisition.
The Company’s effective tax rates were 21.6% on pre-tax loss and 27.8% on pre-tax income during the three months ended June 30, 2020 and 2019, respectively. The decrease was primarily related to goodwill impairment charges that are nondeductible for tax purposes.
The Company’s effective tax rates were 20.8% on pre-tax loss and 24.2% on pre-tax income during the six months ended June 30, 2020 and 2019, respectively. The decrease was primarily related to goodwill impairment charges that are
nondeductible for tax purposes and the absence of the favorable tax impact from a settlement with state taxing authorities in the first quarter of 2019.
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