Income Taxes |
9 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Sep. 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 received income tax refunds, net of payments, of $17 million and made cash income tax payments, net of refunds, of $53 million for the nine months ended September 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 35.7% and 31.8% during the three months ended September 30, 2020 and 2019, respectively. The increase was primarily due to higher foreign taxes which is impacted by the jurisdictional mix of earnings and losses in any given period as the foreign jurisdictions in which the Company operates have tax rates that differ from the U.S. statutory rate and a non-deductible payment the Company agreed to make in 2019 related to the La Quinta acquisition. The Company’s effective tax rates were 16.7% on pre-tax loss and 27.9% on pre-tax income during the nine months ended September 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, partially offset by a non-deductible payment the Company agreed to make in 2019 related to the La Quinta acquisition.
|
||||||