Income Taxes

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes.

For the three months ended June 30, 2019, we recorded an income tax expense of $8 million on pre-tax loss from continuing operations of $565 million compared to an income tax benefit of $16 million on pre-tax income from continuing operations of $394 million for the three months ended June 30, 2018. Our effective income tax rate was (1.4)% and (4.1)% for the three months ended June 30, 2019 and 2018, respectively.

For the three months ended June 30, 2019, the effective tax rate was lower than the statutory federal rate of 21%, primarily due to partnership loss for which there was no tax benefit, as such loss is allocated to the partners.

For the three months ended June 30, 2018, the effective tax rate was lower than the statutory federal rate of 21%, primarily due to partnership income for which there was no tax expense, as such income is allocated to the partners, and favorable permanent tax adjustment, including estimated deductions related to internal reorganization of certain corporate entities within the American Entertainment Properties Corp. consolidated group.

For the six months ended June 30, 2019, we recorded an income tax expense of $14 million on pre-tax loss from continuing operations of $1,223 million compared to an income tax expense of $1 million on pre-tax income from continuing operations of $778 million for the six months ended June 30, 2018. Our effective income tax rate was (1.1)% and 0.1% for the six months ended June 30, 2019 and 2018, respectively.

For the six months ended June 30, 2019, the effective tax rate was lower than the statutory federal rate of 21%, primarily due to partnership loss for which there was no tax benefit, as such loss is allocated to the partners.

For the six months ended June 30, 2018, the effective tax rate was lower than the statutory federal rate of 21%, primarily due to partnership income for which there was no tax expense, as such income is allocated to the partners, and favorable permanent tax adjustments, including estimated deductions related to internal reorganization of certain corporate entities within the American Entertainment Properties Corp. consolidated group.