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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES 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. The components of deferred tax assets and liabilities at December 31, 2021 and 2020, are as follows:
(in millions) |  | 2021 |  | 2020
DEFERRED TAX LIABILITIES: |  |  |  |
Accelerated depreciation |  | $ | 2,883 |  |  | $ | 2,939 |
Prepaid insurance |  | 189 |  |  | 190 |
Operating lease right-of-use assets |  | 356 |  |  | 423 |
Other |  | 188 |  |  | 67 |
Total deferred tax liabilities |  | 3,616 |  |  | 3,619 |
DEFERRED TAX ASSETS: |  |  |  |
Accrued employee benefits |  | 341 |  |  | 491 |
Rapid rewards loyalty liability |  | 636 |  |  | 632 |
Operating lease liabilities |  | 371 |  |  | 443 |
Customer travel credits |  | 305 |  |  | 117 |
Construction obligation |  | — |  |  | 72 |
Net operating losses and tax credits |  | 36 |  | (a) | 60 |
Other |  | 157 |  |  | 170 |
Total deferred tax assets |  | 1,846 |  |  | 1,985 |
Net deferred tax liability |  | $ | 1,770 |  |  | $ | 1,634 |
(a) At December 31, 2021 and 2020, the Company had approximately $44 million and $65 million, respectively, of state net operating loss carryforwards (tax effected) to reduce future state taxable income. These state net operating loss carryforwards will expire in years 2025 - 2040 if unused. The provision (benefit) for income taxes is composed of the following:
(in millions) |  | 2021 |  | 2020 |  | 2019
CURRENT: |  |  |  |  |  |
Federal (a) |  | $ | 337 |  |  | $ | (273) |  |  | $ | 610 |
State |  | 33 |  |  | (5) |  |  | 102 |
Change in federal statutory rate (b) |  | (2) |  |  | (188) |  |  | — |
Total current |  | 368 |  |  | (466) |  |  | 712 |
DEFERRED: |  |  |  |  |  |
Federal (a) |  | (43) |  |  | (589) |  |  | (18) |
State |  | 2 |  |  | (76) |  |  | (6) |
State net operating losses |  | 21 |  |  | (51) |  |  | — |
Change in federal statutory tax rate (c) |  | — |  |  | — |  |  | (31) |
Total deferred |  | (20) |  |  | (716) |  |  | (55) |
|  | $ | 348 |  |  | $ | (1,182) |  |  | $ | 657 |
(a) The CARES Act allows entities to carry back 2020 losses to prior periods of up to five years, and claim refunds of federal taxes paid. The Company has filed the refund claim with the IRS, and expects a refund of $472 million in the first six months of 2022. (b) The benefit is representative of the excess refund generated as the result of carrying the 2020 losses back to a period when the federal statutory tax rate was 35 percent as opposed to the current tax rate of 21 percent. (c) The Tax Cuts and Jobs Act was enacted in December 2017, which reduced the U.S. federal corporate tax rate from the previous rate of 35 percent to 21 percent. The effective tax rate on Income (loss) before income taxes differed from the federal income tax statutory rate for the following reasons:
(in millions) |  | 2021 |  | 2020 |  | 2019 |
Tax at statutory U.S. tax rates |  | $ | 278 |  |  | $ | (894) |  |  | $ | 621 |  |
State income taxes, net of federal benefit |  | 45 |  |  | (115) |  |  | 76 |  |
Change in federal statutory tax rate |  | (2) |  |  | (188) |  | (a) | (31) |  | (b)
Other, net |  | 27 |  |  | 15 |  |  | (9) |  |
Total income tax provision (benefit) |  | $ | 348 |  |  | $ | (1,182) |  |  | $ | 657 |  |
(a) The benefit is representative of the excess refund generated as the result of carrying the 2020 losses back to a period when the federal statutory tax rate was 35 percent as opposed to the current tax rate of 21 percent. (b) The Tax Cuts and Jobs Act was enacted in December 2017, which reduced the U.S. federal corporate tax rate from the previous rate of 35 percent to 21 percent. The only periods subject to examination for the Company’s federal tax return are the 2020 and 2021 tax years. The Company is also subject to various examinations from state and local income tax jurisdictions in the ordinary course of business. These examinations are not expected to have a material effect on the financial results of the Company.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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