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Income Tax | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax The provision for income taxes consists of the following:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | — |  |  | $ | — |
State | 2,195 |  |  | 113 |  |  | 184 |
Foreign | 3,463 |  |  | 1,750 |  |  | 6,754 |
Deferred: |  |  |  |  |
Federal | 309,614 |  |  | (43,414) |  |  | 94,050 |
State | 343 |  |  | (190) |  |  | 3,396 |
Foreign | (176,603) |  |  | — |  |  | — |
Income tax expense | $ | 139,012 |  |  | $ | (41,741) |  |  | $ | 104,384 |
Differences between the provision for income taxes and income taxes at the statutory federal income tax rate are as follows:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| Amount |  | Percent |  | Amount |  | Percent |  | Amount |  | Percent
| (in thousands, except percentages)
Income taxes at statutory federal rate | $ | 158,264 |  |  | 21.0 | % |  | $ | (29,141) |  |  | 21.0 | % |  | $ | 113,613 |  |  | 21.0 | %
Effect of rates different than statutory | (18,917) |  |  | (2.5) |  |  | (10,728) |  |  | 7.7 |  |  | (8,067) |  |  | (1.5) |
Foreign tax credit | (10,252) |  |  | (1.4) |  |  | (8,274) |  |  | 6.0 |  |  | (15,651) |  |  | (2.9) |
Section 162(m) limitation | 4,349 |  |  | 0.6 |  |  | 3,913 |  |  | (2.8) |  |  | 3,808 |  |  | 0.7 |
Foreign income taxes | 3,371 |  |  | 0.5 |  |  | 1,750 |  |  | (1.3) |  |  | 6,754 |  |  | 1.3 |
State income taxes, net of federal income tax effect and other | 2,005 |  |  | 0.2 |  |  | (61) |  |  | 0.1 |  |  | 2,828 |  |  | 0.5 |
Other | 192 |  |  | 0.1 |  |  | 800 |  |  | (0.6) |  |  | 1,099 |  |  | 0.2 |
Income tax (benefit)/expense | $ | 139,012 |  |  | 18.5 | % |  | $ | (41,741) |  |  | 30.1 | % |  | $ | 104,384 |  |  | 19.3 | %
As of December 31, 2023 and 2022, the Company’s net deferred tax assets (liabilities) are as follows:
| December 31, 2023 |  | December 31, 2022
| (in thousands)
Deferred tax assets |  |  |
Net operating losses | $ | 491,684 |  |  | $ | 82,821 |
Interest expense limitation | 209,493 |  |  | 102,125 |
Foreign tax credit | 64,945 |  |  | 77,273 |
Rents received in advance | 27,642 |  |  | 28,909 |
Other | 24,456 |  |  | 18,047 |
Total deferred tax assets | 818,220 |  |  | 309,175 |
Deferred tax liabilities |  |  |
Aircraft depreciation | $ | (1,696,839) |  |  | $ | (1,222,772) |
Effects of foreign jurisdiction deferred taxes | (177,879) |  |  | — |
Straight-line rents | (47,460) |  |  | (57,200) |
Total deferred tax liabilities | $ | (1,922,178) |  |  | $ | (1,279,972) |
Net deferred tax assets/(liabilities) | $ | (1,103,958) |  |  | $ | (970,797) |
The Company had deferred tax assets related to interest expense that was limited for federal income tax purposes of $209.5 million as of December 31, 2023, which are available indefinitely to offset taxable income in future periods. The Company also had deferred tax assets related to foreign tax credits for federal income tax purposes of $64.9 million as of December 31, 2023, which are available to offset taxable income in the future periods. As of December 31, 2023, the Company utilized its remaining net operating loss (“NOL”) for federal income tax purposes of $81.3 million (tax-effected) and has NOL for Irish income tax and for state income tax purposes of $490.4 million (tax-effected) and $1.6 million (tax-effected, excluding the federal benefit), respectively, which are available to offset taxable income in future periods. The Company’s NOL and foreign tax credit carryforwards expire in the following periods:
| NOL Carryforwards (tax effected) |  | Tax Credit Carryforwards
| (in thousands)
2024-2028 | $ | — |  |  | $ | 20,950 |
Thereafter | 491,684 |  |  | 43,995 |
Total carryforwards | $ | 491,684 |  |  | $ | 64,945 |
As of December 31, 2023, the Company has deferred tax assets of $177.9 million included in Other assets in the Company’s consolidated balance sheet. The Company has not recorded a valuation allowance against its deferred tax assets as of December 31, 2023 and 2022 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, 2023 and 2022, 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 2019 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.

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- 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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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