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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2017
Income Tax Disclosure [Abstract]  
Components of Earnings Before Income Taxes
The components of our earnings before income taxes for the last three fiscal years consisted of:
($ in millions)
2017
 
2016
 
2015
U.S.
$
1,983

 
$
813

 
$
896

Non-U.S.
853

 
371

 
359

 
$
2,836

 
$
1,184

 
$
1,255

Provision for Income Taxes
Our provision for income taxes for the last three fiscal years consists of:
($ in millions)
2017
 
2016
 
2015
Current
-U.S. Federal
$
(1,253
)
 
$
(203
)
 
$
(167
)
 
-U.S. State
(152
)
 
(41
)
 
(40
)
 
-Non-U.S.
(178
)
 
(56
)
 
(50
)
 
 
(1,583
)
 
(300
)
 
(257
)
 
 
 
 
 
 
 
Deferred
-U.S. Federal
107

 
(61
)
 
(131
)
 
-U.S. State
(26
)
 
(14
)
 
(7
)
 
-Non-U.S.
38

 
(29
)
 
(1
)
 
 
119

 
(104
)
 
(139
)
 
 
$
(1,464
)
 
$
(404
)
 
$
(396
)
Unrecognized Tax Benefits Reconciliation
The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2015 to the end of 2017:
($ in millions)
Amount
Unrecognized tax benefit at beginning of 2015
$
10

Change attributable to tax positions taken during the current period
15

Decrease attributable to settlements with taxing authorities

Decrease attributable to lapse of statute of limitations
(1
)
Unrecognized tax benefit at year-end 2015
24

Additions from Starwood Combination
387

Change attributable to tax positions taken in prior years
(3
)
Change attributable to tax positions taken during the current period
16

Decrease attributable to settlements with taxing authorities
(2
)
Decrease attributable to lapse of statute of limitations
(1
)
Unrecognized tax benefit at year-end 2016
421

Change attributable to tax positions taken in prior years
12

Change attributable to tax positions taken during the current period
87

Decrease attributable to settlements with taxing authorities
(28
)
Decrease attributable to lapse of statute of limitations
(1
)
Unrecognized tax benefit at year-end 2017
$
491

Schedule of Deferred Tax Assets and Liabilities
The following table presents the tax effect of each type of temporary difference and carry-forward that gave rise to significant portions of our deferred tax assets and liabilities as of year-end 2017 and year-end 2016:
($ in millions)
At Year-End 2017
 
At Year-End 2016
Deferred Tax Assets
 
 
 
Employee benefits
$
274

 
$
430

Net operating loss carry-forwards
375

 
320

Accrued expenses and other reserves
145

 
204

Receivables, net
29

 
134

Tax credits
27

 
79

Frequent guest program
12

 
42

Deferred income
14

 
20

Self-insurance
12

 
15

Other

 
32

Deferred tax assets
888

 
1,276

Valuation allowance
(313
)
 
(249
)
Deferred tax assets after valuation allowance
575

 
1,027

Deferred Tax Liabilities
 
 
 
Joint venture interests
(43
)
 
(8
)
Property and equipment
(47
)
 
(199
)
Intangibles
(963
)
 
(1,724
)
Other
(33
)
 

Deferred tax liabilities
(1,086
)
 
(1,931
)
Net deferred taxes
$
(511
)
 
$
(904
)
Reconciliation of the U.S. Statutory Tax Rate to Effective Income Tax Rate
The following table reconciles the U.S. statutory tax rate to our effective income tax rate for the last three fiscal years:
 
2017
 
2016
 
2015
U.S. statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
U.S. state income taxes, net of U.S. federal tax benefit
3.1

 
2.9

 
2.9

Non-U.S. income
(7.8
)
 
(6.8
)
 
(5.2
)
Change in valuation allowance
2.1

 
0.3

 
1.2

Change in uncertain tax positions
2.3

 
1.5

 
0.4

Change in U.S. tax rate
(5.6
)
 
0.0

 
0.0

Transition Tax on foreign earnings
23.9

 
0.0

 
0.0

Excess tax benefits related to equity awards
(2.5
)
 
0.0

 
0.0

Other, net
1.1

 
1.2

 
(2.8
)
Effective rate
51.6
 %
 
34.1
 %
 
31.5
 %