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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,
202220212020
(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,
202220212020
AmountPercentAmountPercentAmountPercent
(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) limitation3,913 (2.8)3,808 0.7 2,736 0.4 
Foreign income taxes1,750 (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 
Other800 (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, 2022December 31, 2021
(in thousands)
Deferred tax assets
Interest expense limitation$102,125 $— 
Net operating losses 82,821 127,591 
Foreign tax credit77,273 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 assets309,175 261,133 
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 $77.3 million as of December 31, 2022 which are available to offset taxable income in future periods. The Company's loss and tax credit carryforwards expire in the following periods:
NOL CarryforwardsTax Credit Carryforwards
(in thousands)
2023-2027$— $24,099 
Thereafter410,273 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.