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Income Tax
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
The provision for income taxes consists of the following:
Year Ended
December 31,
202320222021
(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,
202320222021
AmountPercentAmountPercentAmountPercent
(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) limitation4,349 0.6 3,913 (2.8)3,808 0.7 
Foreign income taxes3,371 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 
Other192 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, 2023December 31, 2022
(in thousands)
Deferred tax assets
Net operating losses $491,684 $82,821 
Interest expense limitation209,493 102,125 
Foreign tax credit64,945 77,273 
Rents received in advance 27,642 28,909 
Other 24,456 18,047 
Total deferred tax assets818,220 309,175 
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 
Thereafter491,684 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.