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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
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 as of December 31, 2024 and 2023, are as follows:
 
(in millions)20242023
DEFERRED TAX LIABILITIES:
Accelerated depreciation$3,351 $3,595 
Prepaid insurance282 258 
Operating lease right-of-use assets314 276 
Other99 91 
Total deferred tax liabilities4,046 4,220 
DEFERRED TAX ASSETS:
Accrued employee benefits337 757 
Loyalty program and flight credit liability604 599 
Operating lease liabilities319 279 
Net operating losses and tax credits (a)352 309 
Other267 232 
Total deferred tax assets1,879 2,176 
Net deferred tax liability$2,167 $2,044 
(a) As of December 31, 2024 and 2023, the Company had approximately $56 million and $36 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 through 2046 if unused. As of December 31, 2024 and 2023, the Company had $253 million and $268 million, respectively, of federal net operating loss carryforwards (tax effected) that may be carried forward indefinitely.

The provision (benefit) for income taxes is composed of the following:

(in millions)202420232022
CURRENT:
Federal$— $(10)$(36)
State1 19 (3)
Total current1 9 (39)
DEFERRED:
Federal108 140 208 
State24 19 20 
Total deferred132 159 228 
Income tax provision (benefit)$133 $168 $189 
The effective tax rate on Income (loss) before income taxes differed from the federal income tax statutory rate for the following reasons:

(in millions)202420232022
Tax at statutory U.S. tax rates$126 $133 $153 
State income taxes, net of federal benefit20 30 12 
Nondeductible per diem9 8 1 
Convertible debt repurchases— — 31 
DOT settlement(3)22 — 
Federal tax credits(33)(19)(13)
Other, net14 (6)5 
Total income tax provision (benefit)$133 $168 $189 

The only periods subject to examination for the Company’s federal tax return are tax years 2020-2024. 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.