INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Components of (Losses) Earnings Before Income Taxes

The components of our (losses) earnings before income taxes for the last three fiscal years consisted of:


($ in millions)	2020		2019		2018
U.S.	$	(320)	$	549	$	1,311
Non-U.S.	(146)		1,050		1,034
	$	(466)	$	1,599	$	2,345

Benefit (Provision) for Income Taxes

Our benefit (provision) for income taxes for the last three fiscal years consisted of:


($ in millions)		2020		2019		2018
Current	-U.S. Federal	$	9	$	(272)	$	(169)
	-U.S. State	(41)		(57)		(94)
	-Non-U.S.	(78)		(161)		(284)
		(110)		(490)		(547)

Deferred	-U.S. Federal	180		141		10
	-U.S. State	81		39		(6)
	-Non-U.S.	48		(16)		105
		309		164		109
		$	199	$	(326)	$	(438)

Unrecognized Tax Benefits Reconciliation

The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2018 to the end of 2020:


($ in millions)	Amount
Unrecognized tax benefit at beginning of 2018	$	491

Change attributable to tax positions taken in prior years	37
Change attributable to tax positions taken during the current period	148
Decrease attributable to settlements with taxing authorities	(53)

Unrecognized tax benefit at year-end 2018	623
Change attributable to tax positions taken in prior years	(13)
Change attributable to tax positions taken during the current period	13
Decrease attributable to settlements with taxing authorities	(54)

Unrecognized tax benefit at year-end 2019	569
Change attributable to tax positions taken in prior years	(66)
Change attributable to tax positions taken during the current period	4
Decrease attributable to settlements with taxing authorities	(43)

Unrecognized tax benefit at year-end 2020	$	464

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 2020 and year-end 2019:


($ in millions)	At Year-End 2020		At Year-End 2019
Deferred Tax Assets
Employee benefits	$	262	$	267
Net operating loss carry-forwards	818		680
Accrued expenses and other reserves	214		162
Receivables, net	12		11
Tax credits	49		41
Loyalty Program	367		249
Deferred income	69		70
Lease liabilities	252		261
Other	82		15
Deferred tax assets	2,125		1,756
Valuation allowance	(1,009)		(616)
Deferred tax assets after valuation allowance	1,116		1,140
Deferred Tax Liabilities
Equity method investments	(29)		(55)
Property and equipment	(42)		(82)
Intangibles	(663)		(895)
Right-of-use assets	(197)		(229)
Self-insurance	(19)		(15)

Deferred tax liabilities	(950)		(1,276)
Net deferred taxes	$	166	$	(136)

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:


	2020		2019		2018
U.S. statutory tax rate	21.0	%	21.0	%	21.0	%
U.S. state income taxes, net of U.S. federal tax benefit	3.8		1.6		2.5
Non-U.S. income	12.5		(3.3)		(1.0)
Change in valuation allowance	(20.0)		3.4		2.6
Change in uncertain tax positions	12.2		1.9		1.0
Change in U.S. tax rate	0.0		0.0		(1.7)
Permanent items	9.4		1.3		0.0
Tax on asset dispositions	0.0		(0.7)		(2.9)

Excess tax benefits related to equity awards	6.4		(3.2)		(1.8)
U.S. tax on foreign earnings	(3.0)		0.1		0.0
Other, net	0.6		(1.7)		(1.0)
Effective rate	42.9	%	20.4	%	18.7	%