Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income before income taxes were as follows:

	Year Ended December 31,
	2013		2012		2011
			(in millions)
U.S. income before tax	$	502	$	435	$	48
Foreign income before tax		196		138		148
Income before income taxes	$	698	$	573	$	196

Schedule of Components of Income Tax Expense (Benefit)

The components of our provision (benefit) for income taxes were as follows:

	Year Ended December 31,
	2013		2012		2011
			(in millions)
Current:
Federal	$	94	$	71	$	50
State		15		13		8
Foreign		64		57		70
Total current		173		141		128
Deferred:
Federal		160		63		(190)
State		4		2		(8)
Foreign		(99)		8		11
Total deferred		65		73		(187)
Total provision (benefit) for income taxes	$	238	$	214	$	(59)

Schedule of Effective Income Tax Rate Reconciliation

Reconciliations of our tax provision at the U.S. statutory rate to the provision (benefit) for income taxes were as follows:

	Year Ended December 31,
	2013		2012		2011
			(in millions)
Statutory U.S. federal income tax provision	$	244	$	201	$	69
State income taxes, net of U.S. federal tax benefit		31		10		6
Foreign income tax expense		74		18		50
Foreign losses not subject to U.S. tax		(24)		(24)		(26)
Tax credits		(67)		(67)		(58)
Change in deferred tax asset valuation allowance		(121)		56		(160)
Change in basis difference in foreign subsidiaries		24		18		20
Provision for uncertain tax positions		(19)		(2)		35
Non-deductible equity based compensation		94		—		—
Other, net		2		4		5
Provision (benefit) for income taxes	$	238	$	214	$	(59)

Schedule of Deferred Tax Assets and Liabilities

The composition of net deferred tax balances were as follows:

	December 31,
	2013		2012
	(in millions)
Deferred income tax assets—current	$	23	$	76
Deferred income tax assets—non-current		193		104
Deferred income tax liabilities—current(1)		—		(1)
Deferred income tax liabilities—non-current		(5,053)		(4,948)
Net deferred taxes	$	(4,837)	$	(4,769)

⁽¹⁾ Included in the accounts payable, accrued expenses and other in our consolidated balance sheet.

The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax asset (liability) were as follows:

	December 31,
	2013		2012
	(in millions)
Deferred tax assets:
Foreign tax credits	$	20	$	227
Net operating loss carryforwards		573		570
Compensation		187		245
Deferred transaction costs		15		25
Investments		56		—
Other reserves		90		198
Capital lease obligations		133		188
Self-insurance reserves		51		44
System funds		42		23
Other tax credits		3		48
Other		105		72
Total gross deferred tax assets		1,275		1,640
Less: valuation allowance		(503)		(769)
Deferred tax assets	$	772	$	871
Deferred tax liabilities:
Property and equipment	$	(2,075)	$	(2,025)
Brands		(1,910)		(1,916)
Amortizable intangible		(616)		(659)
Unrealized foreign currency gains		(279)		(301)
Investments		—		(70)
Investment in foreign subsidiaries		(81)		(93)
Deferred income		(648)		(576)
Deferred tax liabilities		(5,609)		(5,640)
Net deferred taxes	$	(4,837)	$	(4,769)

Summary of Unrecognized Tax Benefits

Reconciliations of the beginning and ending amount of unrecognized tax benefits were as follows:

	Year Ended December 31,
	2013		2012		2011
			(in millions)
Balance at beginning of year	$	469	$	436	$	405
Additions for tax positions related to the prior year		1		71		60
Additions for tax positions related to the current year		5		5		5
Reductions for tax positions for prior years		(2)		(23)		(6)
Settlements		(35)		(14)		(27)
Lapse of statute of limitations		(2)		(6)		(2)
Currency translation adjustment		(1)		—		1
Balance at end of year	$	435	$	469	$	436