Income Taxes
Prior to May 2014, CGPH's operations were included in the consolidated U.S. federal income tax return and state income tax returns of Caesars Entertainment. The provision for income taxes included in the Combined and Consolidated Statements of Operations and Comprehensive Income/(Loss) was computed as if CGPH filed its U.S. federal, state and income tax returns on a stand-alone basis. Planet Hollywood is a disregarded entity for federal and state income tax purposes as part of the Caesars Entertainment consolidated group. Upon closing of the Acquired Properties Transaction and Harrah's Transaction, CGPH is treated as a pass-through entity for federal and state income tax purposes.
The components of (Loss)/income before provision for income taxes and the related provision for income taxes for the United States and other income taxes for CGPH were as follows: |
| | | | | | | | | | | |
| Year Ended December 31, |
(In millions) | 2016 | | 2015 | | 2014 |
Income/(loss) before provision for income taxes | | | | | |
United States | $ | 21.3 |
| | $ | 19.0 |
| | $ | (208.8 | ) |
Outside of the United States | — |
| | — |
| | — |
|
Total income/(loss) before provision for income taxes | $ | 21.3 |
| | $ | 19.0 |
| | $ | (208.8 | ) |
|
| | | | | | | | | | | |
| Year Ended December 31, |
(In millions) | 2016 | | 2015 | | 2014 |
Provision for income taxes | | | | | |
Federal | | | | | |
Current | $ | — |
| | $ | — |
| | $ | 18.3 |
|
Deferred | — |
| | — |
| | (7.1 | ) |
States | | | | | |
Current | — |
| | — |
| | 1.4 |
|
Deferred | — |
| | — |
| | — |
|
Total provision for income taxes | $ | — |
| | $ | — |
| | $ | 12.6 |
|
The differences between the United States statutory federal income tax rate and the effective tax rate expressed as a percentage of income before taxes were as follows:
|
| | | | | | | | |
| Year Ended December 31, |
| 2016 | | 2015 | | 2014 |
Statutory tax rate | 35.0 | % | | 35.0 | % | | 35.0 | % |
Increases/(decreases) in tax resulting from: | | | | | |
Nontaxable LLC income/losses | (35.0 | ) | | (35.0 | ) | | (40.6 | ) |
State taxes, net of federal tax benefit | — |
| | — |
| | (0.4 | ) |
Federal tax credits | — |
| | — |
| | 0.1 |
|
Other | — |
| | — |
| | (0.1 | ) |
Effective tax rate | — | % | | — | % | | (6.0 | )% |
CGPH classifies reserves for tax uncertainties within Deferred credits and other in the Consolidated Balance Sheets, separate from any related income tax payable or deferred income taxes. Reserve amounts relate to any potential income tax liabilities resulting from uncertain tax positions as well as potential interest or penalties associated with those liabilities. CGPH had no reserves for tax uncertainties as of December 31, 2016 or 2015. The tax years that remain open for examination for the Company's major jurisdictions are 2012 through 2015 for United States tax purposes and 2006 through 2015 for Louisiana state tax purposes.