Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of (Loss)/Income Before Income Taxes from Continuing Operations

Components of Income/(Loss) Before Income Taxes

	Years Ended December 31,
(In millions)	2019			2018			2017
United States	$	(1,272	)	$	205		$	(2,374	)
Outside of the U.S.	(67		)	(22		)	4
	$	(1,339	)	$	183		$	(2,370	)

Income Tax Benefit/(Provision)

Income Tax Benefit

	Years Ended December 31,
(In millions)	2019			2018			2017
United States
Current
Federal	$	(2	)	$	(9	)	$	148
State	(1		)	(1		)	(7		)
Deferred
Federal	131			170			1,835
State	22			(39		)	23
Outside of the U.S.
Current	(7		)	(9		)	(4		)
Deferred	(2		)	9			—
	$	141		$	121		$	1,995

Allocation of Income Tax Benefit/(Provision)

Allocation of Income Tax Benefit

	Years Ended December 31,
(In millions)	2019		2018		2017
Income tax benefit applicable to:
Income from operations	$	141	$	121	$	1,995
Other comprehensive income/(loss)	12		3		—

Effective Income Tax Rate Reconciliation

Effective Income Tax Rate Reconciliation

	Years Ended December 31,
	2019		2018		2017
Statutory tax rate	21.0	%	21.0	%	35.0	%
Increases/(decreases) in tax resulting from:
State taxes, net of federal tax benefit	2.5		4.0		5.2
Valuation allowance	(9.9	)	(70.4	)	(17.1	)
Foreign income taxes	(1.3	)	2.3		(0.1	)
Deferred tax benefit from changes in federal tax law	—		(44.7	)	52.1
Stock-based compensation	(1.8	)	4.7		(0.2	)
Acquisition of CEOC	—		—		36.7
Reserves for uncertain tax positions	0.5		4.4		(4.6	)
Current tax benefit from change in CGP operating agreement	—		—		2.4
Impairment of goodwill	(0.3	)	4.7		—
Nondeductible transaction costs	—		6.6		(25.0	)
Other	(0.1	)	1.3		(0.2	)
Effective tax rate	10.6	%	(66.1	)%	84.2	%

Temporary Differences Resulting in Deferred Tax Assets and Liabilities

Temporary Differences Resulting in Deferred Tax Assets and Liabilities

	As of December 31,
(In millions)	2019		2018
Deferred tax assets:
State net operating losses	$	415	$	420
Federal net operating loss	409		485
Foreign net operating loss	16		16
Compensation programs	46		81
Allowance for doubtful accounts	40		41
Self-insurance reserves	8		10
Accrued expenses	41		45
Federal tax credits	82		70
Financing obligations	2,479		2,445
Golf course properties’ obligation	35		35
Investment in non-consolidated affiliates	5		5
Other debt-related items	66		—
Deferred revenue	39		42
Leases	62		66
Other	16		—
Subtotal	3,759		3,761
Less: valuation allowance	1,436		1,302
Total deferred tax assets	2,323		2,459
Deferred tax liabilities:
Depreciation and other property-related items	2,360		2,567
Other debt-related items	—		95
Intangibles	497		496
Prepaid expenses	23		20
Other	—		1
Total deferred tax liabilities	2,880		3,179
Net deferred tax liability ⁽¹⁾	$	557	$	720

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⁽¹⁾

The net deferred tax liability above is reflected in the Balance Sheets as follows: Deferred income tax asset of $2 million; Deferred income tax liability of $555 million; Accrued Expenses and other current liabilities - Liabilities held for sale of $4 million.

Reconciliation of Unrecognized Tax Benefits

Reconciliation of Unrecognized Tax Benefits

	Years Ended December 31,
(In millions)	2019			2018			2017
Balance as of beginning of year	$	169		$	162		$	115
Additions based on tax positions related to the current year	37			—			113
Additions for tax positions of prior years	25			13			1
Reductions for tax positions for prior years	(18		)	(5		)	(92		)
Acquisition of OpCo	—			—			67
Settlements	—			(1		)	—
Effect of changes in federal tax law	—			—			(42		)
Balance as of end of year	$	213		$	169		$	162