XML 41 R25.htm IDEA: XBRL DOCUMENT
v3.22.4

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2022
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, 2022 and 2021, are as follows:
(in millions) |  | 2022 |  | 2021
DEFERRED TAX LIABILITIES: |  |  |  |
Accelerated depreciation |  | $ | 3,279 |  |  | $ | 2,883 |
Prepaid insurance |  | 238 |  |  | 189 |
Operating lease right-of-use assets |  | 311 |  |  | 356 |
Other |  | 154 |  |  | 188 |
Total deferred tax liabilities |  | 3,982 |  |  | 3,616 |
DEFERRED TAX ASSETS: |  |  |  |
Accrued employee benefits |  | 424 |  |  | 341 |
Rapid rewards loyalty liability |  | 616 |  |  | 636 |
Operating lease liabilities |  | 313 |  |  | 371 |
Customer flight credits |  | 43 |  |  | 305 |
Net operating losses and tax credits (a) |  | 310 |  |  | 36 |
Other |  | 291 |  |  | 157 |
Total deferred tax assets |  | 1,997 |  |  | 1,846 |
Net deferred tax liability |  | $ | 1,985 |  |  | $ | 1,770 |
(a) At December 31, 2022 and 2021, the Company had approximately $43 million and $44 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 - 2041 if unused. At December 31, 2022, the Company had $275 million (tax effected) of federal net operating loss carryforwards that were generated in 2022. The federal net operating loss can be carried forward indefinitely. The provision (benefit) for income taxes is composed of the following:
(in millions) |  | 2022 |  | 2021 |  | 2020
CURRENT: |  |  |  |  |  |
Federal (a) |  | $ | (36) |  |  | $ | 337 |  |  | $ | (273) |
State |  | (3) |  |  | 33 |  |  | (5) |
Change in federal statutory rate (b) |  | — |  |  | (2) |  |  | (188) |
Total current |  | (39) |  |  | 368 |  |  | (466) |
DEFERRED: |  |  |  |  |  |
Federal (a) |  | 208 |  |  | (43) |  |  | (589) |
State |  | 20 |  |  | 23 |  |  | (127) |
Total deferred |  | 228 |  |  | (20) |  |  | (716) |
Income tax provision (benefit) |  | $ | 189 |  |  | $ | 348 |  |  | $ | (1,182) |
(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 filed the refund claim with the IRS, and received a refund of $472 million during second quarter 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. The effective tax rate on Income (loss) before income taxes differed from the federal income tax statutory rate for the following reasons:
(in millions) |  | 2022 |  | 2021 |  | 2020 |
Tax at statutory U.S. tax rates |  | $ | 153 |  |  | $ | 278 |  |  | $ | (894) |  |
State income taxes, net of federal benefit |  | 12 |  |  | 45 |  |  | (115) |  |
Change in federal statutory tax rate |  | — |  |  | (2) |  | (a) | (188) |  | (a)
Convertible debt repurchases |  | 31 |  |  | 21 |  |  | 10 |  |
Federal tax credits |  | (13) |  |  | (2) |  |  | (1) |  |
Other, net |  | 6 |  |  | 8 |  |  | 6 |  |
Total income tax provision (benefit) |  | $ | 189 |  |  | $ | 348 |  |  | $ | (1,182) |  |
(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. The only periods subject to examination for the Company’s federal tax return are 2020, 2021 and 2022 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.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration