Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2018 | |
| 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. The Company was part of a consolidated U.S. federal income tax return and consolidated and combined state returns through the date of Distribution with its Former Parent and other subsidiaries that are not included in its Condensed Combined Financial Statements. The Company is no longer subject to U.S. federal income tax examinations, for years prior to 2014, as part of the Company’s former Parent filings. The Company is no longer subject to state and local, or foreign, income tax examinations for years prior to 2009. During the six months ended June 30, 2018 and 2017, Wyndham Worldwide paid $27 million and $39 million of federal and state income tax liabilities related to the Company, which is reflected in its Condensed Consolidated and Combined Financial Statements as an increase to former Parent’s net investment. Additionally, the Company made foreign income tax payments, net of refunds, in the amount of $7 million and $6 million during the six months ended June 30, 2018 and 2017.
The Company’s effective tax rates were 27.6% and 41.5% during the three months ended June 30, 2018 and 2017, respectively. The decrease was principally due to the reduction in the corporate income tax rate resulting from the enactment of the U.S. Tax Cuts and Jobs Act.
The Company’s effective tax rates were 28.2% and 40.4% during the six months ended June 30, 2018 and 2017, respectively. The decrease was principally due to the reduction in the corporate income tax rate resulting from the enactment of the U.S. Tax Cuts and Jobs Act.
During the three and six months ended June 30, 2018, the Company did not record any additional measurement-period adjustments related to the impact from the U.S. Tax Cuts and Jobs Act recorded in 2017, since none of the Company’s estimates have changed from year-end. However, the Company is continuing to gather additional information to complete its accounting no later than December 31, 2018.
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