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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Company’s provision for income taxes for the years ended December 31, 2021, 2020 and 2019 are presented below.
Components of Income (Loss) Before Income Taxes | Years Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
United States | $ | (1,272) |  |  | $ | (1,608) |  |  | $ | 125 |
Outside of the U.S. | 3 |  |  | 2 |  |  | — |
| $ | (1,269) |  |  | $ | (1,606) |  |  | $ | 125 |
Income Tax Provision (Benefit) | Years Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
United States |  |  |  |  |
Current |  |  |  |  |
Federal | $ | (1) |  |  | $ | (43) |  |  | $ | 31 |
State & Local | (2) |  |  | (24) |  |  | 14 |
Deferred |  |  |  |  |
Federal | (219) |  |  | 208 |  |  | 5 |
State & Local | (106) |  |  | (11) |  |  | (6) |
Outside of the U.S. |  |  |  |  |
Current | 2 |  |  | 2 |  |  | — |
Deferred | 43 |  |  | — |  |  | — |
| $ | (283) |  |  | $ | 132 |  |  | $ | 44 |
Allocation of Income Tax Provision (Benefit) | Years Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Income tax provision (benefit) applicable to: |  |  |  |  |
Income from operations | $ | (283) |  |  | $ | 132 |  |  | $ | 44 |
Discontinued operations | 19 |  |  | (9) |  |  | — |
Other comprehensive income | 3 |  |  | 8 |  |  | — |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2021, 2020 and 2019:
Effective Income Tax Rate Reconciliation | Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local taxes | 4.2 | % |  | 5.4 | % |  | 5.5 | %
Stock compensation | 0.5 | % |  | (0.1) | % |  | 1.8 | %
Goodwill impairment and dispositions | — | % |  | (1.6) | % |  | 7.4 | %
Nondeductible transaction expenses | — | % |  | (0.5) | % |  | — | %
Nondeductible convertible notes costs | (3.3) | % |  | (1.0) | % |  | — | %
Decrease in uncertain tax positions | 0.4 | % |  | 0.9 | % |  | — | %
Change in tax rates from change in tax law | (1.2) | % |  | — | % |  | — | %
Deferred tax benefit of foreign subsidiaries held for sale | — | % |  | 1.0 | % |  | — | %
Valuation allowance | 2.6 | % |  | (33.9) | % |  | 1.8 | %
Deferred tax recognition on life insurance | (1.3) | % |  | — | % |  | — | %
Tax credits | 0.4 | % |  | 0.1 | % |  | (1.1) | %
Other | (1.0) | % |  | 0.5 | % |  | (1.2) | %
Effective income tax rate | 22.3 | % |  | (8.2) | % |  | 35.2 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred taxes at December 31, 2021 and 2020 are as follows:
| As of December 31,
(In millions) | 2021 |  | 2020
Deferred tax assets: |  |  |
Loss carryforwards | $ | 1,006 |  |  | $ | 1,071 |
Foreign investment - held for sale | — |  |  | 74 |
Excess business interest expense | 180 |  |  | 61 |
Credit carryforwards | 114 |  |  | 106 |
Financing obligation | 2,517 |  |  | 2,557 |
Long-term lease obligation | 161 |  |  | 187 |
Other | 330 |  |  | 289 |
| 4,308 |  |  | 4,345 |
Deferred tax liabilities: |  |  |
Identified intangibles | (1,111) |  |  | (836) |
Other debt-related items | (35) |  |  | (108) |
Foreign investment - held for sale | (139) |  |  | — |
Fixed assets | (2,212) |  |  | (2,424) |
Right-of-use assets | (131) |  |  | (154) |
Other | (103) |  |  | (68) |
| (3,731) |  |  | (3,590) |
Valuation allowance | (1,840) |  |  | (1,921) |
Net deferred tax liabilities | $ | (1,263) |  |  | $ | (1,166) |
The net deferred tax liabilities above are presented in the Balance Sheets as follows:
| As of December 31,
(In millions) | 2021 |  | 2020
Deferred income taxes | $ | (1,111) |  |  | $ | (1,166) |
Assets held for sale | 7 |  |  | 1 |
Liabilities related to assets held for sale | (159) |  |  | (1) |
Net deferred tax liabilities | $ | (1,263) |  |  | $ | (1,166) |
Schedule of Unrecognized Tax Benefits Roll Forward |
Reconciliation of Unrecognized Tax Benefits | Years Ended December 31,
(In millions) | 2021 |  | 2020 |  | 2019
Balance as of beginning of year | $ | 137 |  |  | $ | — |  |  | $ | — |
Acquisition of Caesars Entertainment Corporation | — |  |  | 152 |  |  | — |
Acquisition of William Hill | 32 |  |  | — |  |  | — |
Additions based on tax positions related to the current year | 4 |  |  | — |  |  | — |
Additions for tax positions of prior years | 5 |  |  | 1 |  |  | — |
Reductions for tax positions for prior years | (8) |  |  | — |  |  | — |
Settlements | — |  |  | (4) |  |  | — |
Expiration of statutes | (13) |  |  | (12) |  |  | — |
Balance as of end of year | $ | 157 |  |  | $ | 137 |  |  | $ | — |

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