XML 44 R15.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Taxes |
Income Taxes | Note 7. Income Taxes The provision for income taxes consists of the following: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31,
​ |  | 2019 |  | 2018 |  | 2017
​ | ​ | (in thousands)
Current: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 38,520 | ​ | $ | — | ​ | $ | —
State | ​ |  | 1,025 | ​ |  | 492 | ​ |  | 380
Foreign | ​ |  | 2,937 | ​ |  | 2,839 | ​ |  | 3,853
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 91,243 | ​ |  | 125,160 | ​ |  | (150,850)
State | ​ |  | 14,839 | ​ |  | 812 | ​ |  | (5)
Foreign | ​ |  | — | ​ |  | — | ​ |  | —
Income tax expense/(benefit) | ​ | $ | 148,564 | ​ | $ | 129,303 | ​ | $ | (146,622)
​ Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended December 31, |
​ | ​ | 2019 | ​ | 2018 | ​ | 2017 |
​ |  | Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent |
​ | ​ | (in thousands, except percentages) |
Income taxes at statutory federal rate | ​ | $ | 154,494 | ​ | 21.0 | % | $ | 134,429 | ​ | 21.0 | % | $ | 213,336 | ​ | 35.0 | %
Impact of tax legislation | ​ | ​ | — | ​ | — | ​ | ​ | — | ​ | — | ​ | ​ | (354,127) | ​ | (58.1) | ​
Foreign tax credit | ​ | ​ | (18,231) | ​ | (2.5) | ​ | ​ | (9,600) | ​ | (1.5) | ​ | ​ | (10,873) | ​ | (1.8) | ​
State income taxes, net of federal income tax effect and other | ​ | ​ | 12,532 | ​ | 1.7 | ​ | ​ | 1,030 | ​ | 0.2 | ​ | ​ | 228 | ​ | — | ​
Other | ​ | ​ | (231) | ​ | — | ​ | ​ | 3,444 | ​ | 0.5 | ​ | ​ | 4,814 | ​ | 0.9 | ​
Income tax expense/(benefit) | ​ | $ | 148,564 | ​ | 20.2 | % | $ | 129,303 | ​ | 20.2 | % | $ | (146,622) | ​ | (24.0) | %
​ On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law. The Tax Reform Act significantly revised the U.S. corporate income tax law by, among other things, lowering the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018, repealing the Alternative Minimum Tax (“AMT”), changes to tax depreciation, limitations on interest expense deductions, and limitations on utilization of net operating losses. Accounting Standards Codification (“ASC”) 740 requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the Tax Reform Act, the Company recorded an estimated tax benefit of $354.1 million due to the remeasurement of deferred tax assets and liabilities in the year ended December 31, 2017. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allowed registrants to record provisional amounts for the effects of the Tax Reform Act during a measurement period not to extend beyond one year of the enactment date. In accordance with SAB 118, the Company determined that the $354.1 million benefit resulting from the remeasurement of certain deferred tax assets and liabilities is a provisional amount and a reasonable estimate of the impact of the Tax Reform Act on the Consolidated Financial Statements as of December 31, 2017. In the fourth quarter of 2018, the Company completed its accounting for the income tax effects of the Tax Reform Act, and no material adjustments were required to the provisional amounts initially recorded. The Company recorded a $18.2 million and $9.6 million benefit related to Foreign Tax Credit (“FTC”) in December 31, 2019 and 2018, respectively. The Company has determined there will be sufficient foreign source income projected to utilize these credits. In the first quarter of 2017, the Company adopted ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all excess tax benefits and tax deficiencies to be recognized in the income statement when the awards vest or are settled. Upon adoption of ASU 2016-09, the Company recognized $0.5 million of previously unrecognized windfall tax benefits in retained earnings. As of December 31, 2019 and 2018, the Company’s net deferred tax assets (liabilities) are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | December 31, 2019 |  | December 31, 2018 |
​ | ​ | (in thousands) |
Assets (Liabilities) | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equity compensation | ​ | $ | 8,711 | ​ | $ | 11,951 | ​
Net operating losses | ​ |  | — | ​ |  | 17 | ​
Foreign tax credit | ​ | ​ | — | ​ | ​ | 2,425 | ​
Rents received in advance | ​ |  | 28,161 | ​ |  | 25,165 | ​
Accrued bonus | ​ |  | 3,244 | ​ |  | 2,825 | ​
Straight-line rents | ​ |  | 434 | ​ |  | (320) | ​
Other | ​ |  | (1,316) | ​ |  | 1,972 | ​
Aircraft depreciation | ​ |  | (788,729) | ​ |  | (687,802) | ​
Net deferred tax assets/(liabilities) | ​ | $ | (749,495) | ​ | $ | (643,767) | ​
​ The Company has utilized all of its net operating loss carry forwards (“NOLs”) for federal and state income tax purposes as of December 31, 2019. The Company has utilized all of its FTC carry forwards for federal income tax purposes as of December 31, 2019. As of December 31, 2018, the Company has $0.2 million and $2.4 million of NOLs for state income tax and FTC, respectively. The Company did not generate a NOL for the year ended December 31, 2019 and 2018. The Company has not recorded a deferred tax valuation allowance as of December 31, 2019 and 2018 as realization of the deferred tax asset is considered more likely than not. In assessing the realizability of the deferred tax assets, management considered whether future taxable income will be sufficient during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax planning strategies in making this assessment. Management anticipates the timing differences on aircraft depreciation will reverse and be available for offsetting the reversal of deferred tax assets. As of December 31, 2019 and 2018 the Company has not recorded any liability for unrecognized tax benefits. The Company files income tax returns in the U.S. and various state and foreign jurisdictions. The Company is subject to examinations by the major tax jurisdictions for the 2014 tax year and forward.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration