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Income Taxes | 12 Months Ended
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Dec. 31, 2021
Income Taxes |
Income Taxes | (5) Income Taxes The provision for income taxes includes the following components (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31, |
​ | ​ | 2021 | ​ | 2020 | ​ | 2019 |
Current tax provision (benefit): |  | ​ |  |  | ​ |  |  | ​ |  | ​
Federal | ​ | $ | — | ​ | $ | (4,397) | ​ | $ | (4,395) | ​
State | ​ |  | 846 | ​ |  | (875) | ​ |  | 891 | ​
​ | ​ |  | 846 | ​ |  | (5,272) | ​ |  | (3,504) | ​
Deferred tax provision (benefit): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | 32,510 | ​ |  | 6,659 | ​ |  | 95,655 | ​
State | ​ |  | 5,344 | ​ |  | (199) | ​ |  | 14,055 | ​
​ | ​ |  | 37,854 | ​ |  | 6,460 | ​ |  | 109,710 | ​
Provision for income taxes | ​ | $ | 38,700 | ​ | $ | 1,188 | ​ | $ | 106,206 | ​
​ The following is a reconciliation between a federal income tax rate of 21% and the effective tax rate which is derived by dividing the provision for income taxes by the income (loss) before the provision for income taxes (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31, |
​ | ​ | 2021 | ​ | 2020 | ​ | 2019 |
Computed provision (benefit) for income taxes at the statutory rate |  | $ | 31,628 |  | $ | (1,539) |  | $ | 93,724 | ​
Increase (decrease) in income taxes resulting from: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
State income tax provision, net of federal income tax benefit | ​ |  | 6,247 | ​ |  | 173 | ​ |  | 15,645 | ​
Non-deductible expenses | ​ | ​ | 1,007 | ​ | ​ | 2,539 | ​ | ​ | 3,934 | ​
Valuation allowance changes affecting the provision for income taxes | ​ |  | — | ​ |  | (892) | ​ |  | (517) | ​
Excess tax benefits from share-based compensation | ​ | ​ | (92) | ​ | ​ | (1,434) | ​ | ​ | (3,525) | ​
Other, net | ​ |  | (90) | ​ |  | 2,341 | ​ |  | (3,055) | ​
Provision for income taxes | ​ | $ | 38,700 | ​ | $ | 1,188 | ​ | $ | 106,206 | ​
​ For the year ended December 31, 2020, the Company released $0.9 million of valuation allowance against certain deferred tax assets primarily associated with state net operating losses with a limited carry forward period. For the year ended December 31, 2019, the Company released $0.5 million of valuation allowance against certain deferred tax assets primarily associated with ExpressJet state net operating losses. The decrease in the valuation allowance for 2020 was primarily based on changes in the Company's income tax projections which reduced the amount of deferred tax assets that are anticipated to expire before the deferred tax assets may be utilized. The Company recorded a $0.1 million, $1.4 million and $3.5 million benefit from share-based compensation in 2021, 2020, and 2019, respectively, relating to ASU 2016-09 which, requires excess tax benefits and deficiencies to be recognized in the income tax provision during the period stock options are exercised and when stock awards vest. The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2021 and 2020, are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, |
​ | ​ | 2021 | ​ | 2020 |
Deferred tax assets: |  | ​ |  |  | ​ |  | ​
Accrued benefits | ​ | $ | 21,401 | ​ | $ | 19,668 | ​
Net operating loss carryforward | ​ |  | 175,659 | ​ |  | 229,815 | ​
Aircraft credits | ​ |  | 22,265 | ​ |  | 10,767 | ​
Deferred revenue | ​ | ​ | 25,405 | ​ | ​ | 27,076 | ​
Operating lease liabilities | ​ | ​ | 57,991 | ​ | ​ | 70,541 | ​
Accrued reserves and other | ​ |  | 31,431 | ​ |  | 34,816 | ​
Total deferred tax assets | ​ |  | 334,152 | ​ |  | 392,683 | ​
Valuation allowance | ​ |  | — | ​ |  | — | ​
Deferred tax liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accelerated depreciation | ​ |  | (940,867) | ​ |  | (950,071) | ​
Operating lease right-of-use assets | ​ | ​ | (56,521) | ​ | ​ | (68,543) | ​
Total deferred tax liabilities | ​ |  | (997,388) | ​ |  | (1,018,614) | ​
Net deferred tax liability | ​ | $ | (663,236) | ​ | $ | (625,931) | ​
​ The Company’s deferred tax liabilities were primarily generated through accelerated depreciation, combined with shorter depreciable tax lives, allowed under the IRS tax code for purchased aircraft and support equipment compared to the Company’s depreciation policy under GAAP for such assets using the straight-line method (see note 1 Nature of Operations and Summary of Significant Accounting Policies). At December 31, 2021 and 2020, the Company had federal net operating losses of approximately $745.8 million and $987.0 million and state net operating losses of approximately $554.7 million and $653.1 million, respectively. The estimated effective tax rate applicable to the federal and state net operating losses at December 31, 2021, was 21.0% and 3.45%, respectively. The Company anticipates that the federal and state net operating losses will start to expire in 2036 and 2022, respectively. The Company has no ongoing federal or state examinations. Federal tax years 2018, 2019 and 2020 are open to examination. Under ASC Topic 740, the accounting guidance related to uncertainty in tax positions requires that the impact of a tax position be recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2021, 2020, and 2019 is as follows (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year ended December 31,
​ | ​ | 2021 | ​ | 2020 | ​ | 2019
Unrecognized tax benefits at the beginning of year |  | $ | 14,980 |  | $ | 14,620 |  | $ | 14,553
Gross increases - current year tax positions | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Gross increases - prior year tax positions | ​ |  | 549 | ​ |  | 360 | ​ |  | 67
Gross decreases - prior year tax positions | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Unrecognized tax benefits at end of year | ​ | $ | 15,529 | ​ | $ | 14,980 | ​ | $ | 14,620
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest and penalties in year-end balance | ​ | $ | 976 | ​ | $ | 427 | ​ | $ | 67
​ For the years ending December 31, 2021, 2020, and 2019, the Company recorded $549,000, $360,000, and $67,000, respectively, of interest expense related to uncertain tax positions not offset by the Company's tax attributes.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://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 http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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