Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Domestic and Foreign Income Before Income Taxes

Our tax provision includes federal, state and foreign income taxes payable. The domestic and foreign components of income before income taxes were:

	Year Ended December 31,
	2017		2016		2015
	(in millions)
U.S. income before tax	$	279	$	188	$	379
Foreign income before tax		6		33		38
Income before income taxes	$	285	$	221	$	417

Components of (Benefit) Provision for Income Taxes

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

	Year Ended December 31,
	2017			2016			2015
	(in millions)
Current:
Federal	$	21		$	130		$	102
State		2			16			15
Foreign		9			2			8
Total current		32			148			125
Deferred:
Federal		(2,373	)		(60	)		69
State		—			(7	)		(74	)
Foreign		(5	)		1			(2	)
Total deferred		(2,378	)		(66	)		(7	)
Total (benefit) provision for income taxes	$	(2,346	)	$	82		$	118

Schedule of Effective Income Tax Rate Reconciliation

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

	Year Ended December 31,
	2017			2016			2015
	(in millions)
Statutory U.S. federal income tax provision	$	100		$	77		$	146
State income taxes, net of U.S. federal tax benefit		2			9			26
Foreign income tax expense		4			5			9
U.S. benefit of foreign taxes		—			(3	)		(6	)
Nontaxable liquidation of subsidiaries		—			—			(34	)
Change in deferred tax asset valuation allowance		3			(2	)		(3	)
Change in basis difference in foreign subsidiaries		—			(5	)		(2	)
Tax rate change		(25	)		—			(81	)
Non-deductible goodwill		—			—			65
Non-deductible transaction costs		—			3			—
REIT income not subject to tax		(83	)		—			—
Derecognition and remeasurement of deferred taxes		(2,347	)		—			—
Other, net		—			(2	)		(2	)
(Benefit) provision for income taxes	$	(2,346	)	$	82		$	118

Schedule of Composition of Net Deferred Tax Balances

Deferred income taxes represent the tax effect of the differences between the book and tax bases of assets and liabilities plus carryforward items. The composition of net deferred tax balances were as follows:

	December 31,
	2017			2016
	(in millions)
Deferred income tax assets⁽¹⁾	$	6		$	4
Deferred income tax liabilities		(65	)		(2,437	)
Net deferred tax liability	$	(59	)	$	(2,433	)

⁽¹⁾	Included within Other assets in our consolidated balance sheets.

Schedule of Net Deferred Tax Liability

The tax effects of the temporary differences and carryforwards that give rise to our net deferred tax liability were:

	December 31,
	2017			2016
	(in millions)
Deferred tax assets:
Net operating loss carryforwards	$	10		$	6
Unrealized foreign currency losses		—			4
Other reserves		1			4
Capital lease obligations		2			8
Deferred income		3			7
Property and equipment		7			—
Accrued compensation		2			—
Other		2			4
Total gross deferred tax assets		27			33
Less: valuation allowance		(4	)		—
Deferred tax assets	$	23		$	33
Deferred tax liabilities:
Property and equipment	$	(77	)	$	(2,382	)
Investments		(4	)		(75	)
Amortizable intangible assets		—			(9	)
Other		(1	)		—
Deferred tax liabilities		(82	)		(2,466	)
Net deferred tax liability	$	(59	)	$	(2,433	)

Schedule of Cash Distributions to Stockholders for Federal Income Tax Purposes

For federal income tax purposes, the cash distributions to stockholders are characterized as follows:

	For the Year Ended
	December 31, 2017
Common distributions:
Ordinary dividends	$	4.41
Qualified dividends		2.62