Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Taxes [Line Items]

Components of Income Tax Provision

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

	Year Ended December 31,
	2018		2017		2016
Current income tax provision:
State and Local	$	3	$	10	$	3
Foreign	29		14		9
Current income tax provision	32		24		12
Deferred income tax provision:
Federal	390		2,026		1,456
State and Local	50		63		100
Deferred income tax provision	440		2,089		1,556
Total income tax provision	$	472	$	2,113	$	1,568

Reconciliation of Income Tax Provision

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

	Year Ended December 31,
	2018			2017			2016
Statutory income tax provision	$	396		$	1,188		$	1,453
State income tax provision, net of federal tax effect	44			59			56
Foreign income taxes, net of federal tax effect	23			7			6
Book expenses not deductible for tax purposes	12			33			35
Bankruptcy administration expenses	—			1			1
2017 Tax Act	—			823			—
Change in valuation allowance	(6		)	(3		)	7
Other, net	3			5			10
Income tax provision	$	472		$	2,113		$	1,568

Deferred Tax Assets and Liabilities

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

	December 31,
	2018			2017
Deferred tax assets:
Operating loss carryforwards	$	2,343		$	2,281
Leases	2,189			107
Pensions	1,430			1,559
Loyalty program liability	1,770			1,809
Alternative minimum tax (AMT) credit carryforwards	175			344
Postretirement benefits other than pensions	145			170
Rent expense	136			160
Reorganization items	33			35
Other	631			678
Total deferred tax assets	8,852			7,143
Valuation allowance	(30		)	(36		)
Net deferred tax assets	8,822			7,107
Deferred tax liabilities:
Accelerated depreciation and amortization	(5,280		)	(5,045		)
Leases	(2,081		)	—
Other	(326		)	(279		)
Total deferred tax liabilities	(7,687		)	(5,324		)
Net deferred tax asset	$	1,135		$	1,783

American Airlines, Inc. [Member]

Income Taxes [Line Items]

Components of Income Tax Provision

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

	Year Ended December 31,
	2018		2017		2016
Current income tax provision:
State and Local	$	3	$	14	$	1
Foreign	28		10		9
Current income tax provision	31		24		10
Deferred income tax provision:
Federal	453		2,176		1,507
State and Local	50		70		90
Deferred income tax provision	503		2,246		1,597
Total income tax provision	$	534	$	2,270	$	1,607

Reconciliation of Income Tax Provision

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

	Year Ended December 31,
	2018			2017		2016
Statutory income tax provision	$	460		$	1,244	$	1,504
State income tax provision, net of federal tax effect	46			53		61
Foreign income taxes, net of federal tax effect	22			6		6
Book expenses not deductible for tax purposes	10			30		32
Bankruptcy administration expenses	—			1		1
2017 Tax Act	—			924		—
Change in valuation allowance	(6		)	4		(1		)
Other, net	2			8		4
Income tax provision	$	534		$	2,270	$	1,607

Deferred Tax Assets and Liabilities

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

	December 31,
	2018			2017
Deferred tax assets:
Operating loss carryforwards	$	2,420		$	2,409
Leases	2,176			107
Pensions	1,421			1,549
Loyalty program liability	1,770			1,809
Alternative minimum tax (AMT) credit carryforwards	231			457
Postretirement benefits other than pensions	145			170
Rent expense	136			160
Reorganization items	33			35
Other	588			638
Total deferred tax assets	8,920			7,334
Valuation allowance	(19		)	(25		)
Net deferred tax assets	8,901			7,309
Deferred tax liabilities:
Accelerated depreciation and amortization	(5,243		)	(4,999		)
Leases	(2,068		)	—
Other	(321		)	(274		)
Total deferred tax liabilities	(7,632		)	(5,273		)
Net deferred tax asset	$	1,269		$	2,036