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Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Our effective tax rate increased to 30.0% for the 2017 second quarter from 28.3% for the 2016 second quarter primarily due to an increase in taxable income at a higher tax rate as a result of the Starwood Combination, an unfavorable comparison to the 2016 release of a valuation allowance, and the gain on the sale of a North American Full-Service hotel. The increase was partially offset by a tax benefit of $13 million from the adoption of ASU 2016-09 and the release of a tax reserve of $12 million due to the favorable settlement of an uncertain tax position.
Our effective tax rate decreased to 27.6% for the 2017 first half from 30.5% for the 2016 first half, primarily due to a tax benefit of $56 million from the adoption of ASU 2016-09 and the release of a tax reserve of $12 million due to the favorable settlement of an uncertain tax position. The decrease was partially offset by a tax provision of $20 million related to an increase in taxable income at a higher tax rate as a result of the Starwood Combination, $15 million from an unfavorable comparison to the 2016 release of a valuation allowance, and $9 million from the gain on the sale of a North American Full-Service hotel.
We paid cash for income taxes, net of refunds, of $201 million in the 2017 first half and $128 million in the 2016 first half.