Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Income Before Income Taxes

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

	Year Ended December 31,
	2020			2019		2018
	(in millions)
U.S. (loss) income before tax	$	(1,449	)	$	350	$	498
Foreign (loss) income before tax		(1	)		1		2
(Loss) income before income taxes	$	(1,450	)	$	351	$	500

Components of (Benefit) Provision for Income Taxes

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

	Year Ended December 31,
	2020			2019		2018
	(in millions)
Current:
U.S. Federal	$	1		$	16	$	34
State		3			3		6
Foreign		20			11		3
Total current		24			30		43
Deferred:
U.S. Federal		(29	)		3		(18	)
Foreign		(1	)		2		(2	)
Total deferred		(30	)		5		(20	)
Total (benefit) provision for income taxes	$	(6	)	$	35	$	23

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,
	2020			2019			2018
	(in millions)
Statutory U.S. federal income tax (benefit) provision	$	(306	)	$	74		$	105
State income taxes, net of U.S. federal tax benefit		1			2			3
Foreign income tax expense, net		19			13			2
Change in deferred tax asset valuation allowance		71			2			—
Tax rate change		(7	)		—			(2	)
REIT income not subject to tax		221			(69	)		(92	)
Derecognition and remeasurement of deferred taxes		(35	)		13			7
Recognized built-in gain tax		29			—			—
Other		1			—			—
(Benefit) provision for income taxes	$	(6	)	$	35		$	23

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,
	2020			2019
	(in millions)
Deferred income tax assets(1)	$	1		$	8
Deferred income tax liabilities		(10	)		(50	)
Net deferred tax liability	$	(9	)	$	(42	)

⁽¹⁾ Included within other assets in our consolidated balance sheets, net of valuation allowance.

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,
	2020			2019
	(in millions)
Deferred tax assets:
Net operating loss carryforwards	$	74		$	9
Deferred income		5			4
Accrued compensation		1			2
Other		6			6
Total gross deferred tax assets		86			21
Less: valuation allowance		(77	)		(6	)
Deferred tax assets		9			15
Deferred tax liabilities:
Property and equipment		(4	)		(48	)
Investments		(10	)		(8	)
Accrued compensation		(4	)		(1	)
Deferred tax liabilities		(18	)		(57	)
Net deferred tax liability	$	(9	)	$	(42	)

Schedule of Cash Distributions to Stockholders for Federal Income Tax Purposes

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

	Year Ended December 31,
	2020		2019
Common distributions (per share):
Ordinary dividends	$	0.244571	$	1.605405
Capital gain distributions(1)		0.205429		0.294595

⁽¹⁾ Capital gain distribution disclosure pursuant to Treasury Regulation §1.1061-6(c).  The following additional information relates to the capital gain distribution for calendar year 2020, as reported on Park Hotels & Resorts Inc. Form 1099-DIV, Box 2a. For purposes of Internal Revenue Code Section 1061, which is generally applicable to direct and indirect holders of “applicable partnership interests,”: (i) the “One Year Amounts” are $0.205429 per share, and (ii) the “Three Year Amounts” are $0.205429 per share, with respect to the 2020 capital gain distribution.