XML 42 R17.htm IDEA: XBRL DOCUMENT
v3.22.4

Income Tax | 12 Months Ended
--- | ---
Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The provision for income taxes consists of the following:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | (38,520) |
State | 113 |  |  | 184 |  |  | (107) |
Foreign | 1,750 |  |  | 6,754 |  |  | 2,574 |
Deferred: |  |  |  |  |
Federal | (43,414) |  |  | 94,050 |  |  | 163,002 |
State | (190) |  |  | 3,396 |  |  | 3,465 |
Foreign | — |  |  | — |  |  | — |
Income tax expense | $ | (41,741) |  |  | $ | 104,384 |  |  | $ | 130,414 |
Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
| (in thousands, except percentages)
Income taxes at statutory federal rate | $ | (29,141) |  |  | 21.0 | % |  | $ | 113,613 |  |  | 21.0 | % |  | $ | 135,802 |  |  | 21.0 | %
Effect of rates different than statutory | (10,728) |  |  | 7.7 |  |  | (8,067) |  |  | (1.5) |  |  | (5,329) |  |  | (0.8) |
Foreign tax credit | (8,274) |  |  | 6.0 |  |  | (15,651) |  |  | (2.9) |  |  | (9,464) |  |  | (1.5) |
Section 162(m) limitation | 3,913 |  |  | (2.8) |  |  | 3,808 |  |  | 0.7 |  |  | 2,736 |  |  | 0.4 |
Foreign income taxes | 1,750 |  |  | (1.3) |  |  | 6,754 |  |  | 1.3 |  |  | 2,575 |  |  | 0.4 |
State income taxes, net of federal income tax effect and other | (61) |  |  | 0.1 |  |  | 2,828 |  |  | 0.5 |  |  | 2,653 |  |  | 0.4 |
Other | 800 |  |  | (0.6) |  |  | 1,099 |  |  | 0.2 |  |  | 1,441 |  |  | 0.2 |
Income tax (benefit)/expense | $ | (41,741) |  |  | 30.1 | % |  | $ | 104,384 |  |  | 19.3 | % |  | $ | 130,414 |  |  | 20.1 | %
As of December 31, 2022 and 2021, the Company’s net deferred tax assets (liabilities) are as follows:
| December 31, 2022 |  | December 31, 2021
| (in thousands)
Deferred tax assets |  |  |
Interest expense limitation | $ | 102,125 |  |  | $ | — |
Net operating losses | 82,821 |  |  | 127,591 |
Foreign tax credit | 77,273 |  |  | 78,286 |
Rents received in advance | 28,909 |  |  | 26,702 |
Other | 10,638 |  |  | 19,743 |
Accrued bonus | 3,965 |  |  | 4,349 |
Equity compensation | 3,444 |  |  | 4,462 |
Total deferred tax assets | 309,175 |  |  | 261,133 |
Deferred tax liabilities |  |  |
Aircraft depreciation | $ | (1,222,772) |  |  | $ | (1,219,061) |
Straight-line rents | (57,200) |  |  | (55,342) |
Total deferred tax liabilities | $ | (1,279,972) |  |  | $ | (1,274,403) |
Net deferred tax assets/(liabilities) | $ | (970,797) |  |  | $ | (1,013,270) |
The Company has interest expense that was limited for federal income tax purposes of $102.1 million as of December 31, 2022, which are available indefinitely to offset taxable income in future periods. The Company has NOL for federal and state income tax purposes of $387.3 million and $22.8 million as of December 31, 2022, respectively, which are available to offset taxable income in future periods. The Company has foreign tax credits for federal income tax purposes of $77.3 million as of December 31, 2022 which are available to offset taxable income in future periods. The Company's loss and tax credit carryforwards expire in the following periods:
| NOL Carryforwards |  | Tax Credit Carryforwards
| (in thousands)
2023-2027 | $ | — |  |  | $ | 24,099 |
Thereafter | 410,273 |  |  | 53,174 |
Total carryforwards | $ | 410,273 |  |  | $ | 77,273 |
The Company has not recorded a valuation allowance against its deferred tax assets as of December 31, 2022 and 2021 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 forecasted income, together with reversals of existing deferred tax liabilities, and tax planning strategies will be sufficient to recover the deferred tax assets and tax credits 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, 2022 and 2021, 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 2018 tax year and forward. In the fourth quarter of 2022, the Company was notified by the Internal Revenue Service that tax years 2019 to 2020 were selected for examination.

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