Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The significant components of the income tax provision (benefit) were (in millions):



	Year Ended December 31,
	2017		2016		2015
Current income tax provision:
Federal	$	—	$	—	$	—
State and Local	24		12		20
Current income tax provision	24		12		20
Deferred income tax provision (benefit):
Federal	1,085		1,508		(2,884		)
State and Local	56		103		(130		)
Deferred income tax provision (benefit)	1,141		1,611		(3,014		)
Total income tax provision (benefit)	$	1,165	$	1,623	$	(2,994	)

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):



	Year Ended December 31,
	2017			2016		2015
Statutory income tax provision	$	1,079		$	1,505	$	1,616
State income tax provision, net of federal tax effect	61			63		72
Book expenses not deductible for tax purposes	33			34		57
Bankruptcy administration expenses	1			1		3
2017 Tax Act	(7		)	—		—
Change in valuation allowance	(3		)	7		(4,742		)
Other, net	1			13		—
Income tax provision (benefit)	$	1,165		$	1,623	$	(2,994	)

The components of our deferred tax assets and liabilities were (in millions):



	December 31,
	2017			2016
Deferred tax assets:
Operating loss carryforwards	$	2,281		$	3,853
Pensions	1,559			2,610
Loyalty program liability	420			485
Alternative minimum tax (AMT) credit carryforwards	344			344
Postretirement benefits other than pensions	170			291
Rent expense	160			256
Gains from lease transactions	107			213
Reorganization items	35			53
Other	678			972
Total deferred tax assets	5,754			9,077
Valuation allowance	(36		)	(29		)
Net deferred tax assets	5,718			9,048

Deferred tax liabilities:
Accelerated depreciation and amortization	(5,045		)	(7,216		)
Other	(279		)	(345		)
Total deferred tax liabilities	(5,324		)	(7,561		)
Net deferred tax asset	$	394		$	1,487

The significant components of the income tax provision (benefit) were (in millions):



	Year Ended December 31,
	2017		2016		2015
Current income tax provision:
Federal	$	—	$	—	$	—
State and Local	24		10		15
Current income tax provision	24		10		15
Deferred income tax provision (benefit):
Federal	1,235		1,559		(3,407		)
State and Local	63		93		(60		)
Deferred income tax provision (benefit)	1,298		1,652		(3,467		)
Total income tax provision (benefit)	$	1,322	$	1,662	$	(3,452	)

The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):



	Year Ended December 31,
	2017		2016			2015
Statutory income tax provision	$	1,135	$	1,555		$	1,635
State income tax provision, net of federal tax effect	54		67			71
Book expenses not deductible for tax purposes	30		32			55
Bankruptcy administration expenses	1		1			3
2017 Tax Act	93		—			—
Change in valuation allowance	4		(1		)	(5,216		)
Other, net	5		8			—
Income tax provision (benefit)	$	1,322	$	1,662		$	(3,452	)

The components of American’s deferred tax assets and liabilities were (in millions):



	December 31,
	2017			2016
Deferred tax assets:
Operating loss carryforwards	$	2,409		$	4,087
Pensions	1,549			2,595
Loyalty program liability	420			485
Alternative minimum tax (AMT) credit carryforwards	457			456
Postretirement benefits other than pensions	170			291
Rent expense	160			256
Gains from lease transactions	107			213
Reorganization items	35			53
Other	638			911
Total deferred tax assets	5,945			9,347
Valuation allowance	(25		)	(13		)
Net deferred tax assets	5,920			9,334

Deferred tax liabilities:
Accelerated depreciation and amortization	(4,999		)	(7,101		)
Other	(274		)	(335		)
Total deferred tax liabilities	(5,273		)	(7,436		)
Net deferred tax asset	$	647		$	1,898