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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision (benefit) were (in millions):
 Year Ended December 31,
 202120202019
Current income tax provision:
State and Local$— $— $2 
Foreign— — 8 
Current income tax provision— — 10 
Deferred income tax provision (benefit):
Federal(508)(2,335)498 
State and Local(47)(233)62 
Deferred income tax provision (benefit)(555)(2,568)560 
Total income tax provision (benefit)$(555)$(2,568)$570 
 The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202120202019
Statutory income tax provision (benefit)$(535)$(2,405)$474 
State income tax provision (benefit), net of federal tax effect(37)(183)47 
Book expenses not deductible for tax purposes23 22 31 
Foreign income taxes, net of federal tax effect — — 8 
Change in valuation allowance— — 4 
Other, net(6)(2)6 
Income tax provision (benefit)$(555)$(2,568)$570 
The components of our deferred tax assets and liabilities were (in millions):
 December 31,
 20212020
Deferred tax assets:
Operating loss and other carryforwards$4,612 $4,027 
Loyalty program liability1,903 1,977 
Leases1,833 1,913 
Pensions941 1,405 
Postretirement benefits other than pensions214 203 
Rent expense92 96 
Reorganization items24 28 
Other760 847 
Total deferred tax assets10,379 10,496 
Valuation allowance(34)(34)
Net deferred tax assets10,345 10,462 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,747)(5,028)
Leases(1,767)(1,818)
Other(284)(386)
Total deferred tax liabilities(6,798)(7,232)
Net deferred tax asset$3,547 $3,230 
At December 31, 2021, we had approximately $17.2 billion of gross federal net operating losses (NOLs) and $3.0 billion of other carryforwards available to reduce future federal taxable income, of which $6.9 billion will expire beginning in 2024 if unused and $13.3 billion can be carried forward indefinitely. We also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2021, which will expire in taxable years 2021 through 2041 if unused.
Our ability to use our NOLs and other carryforwards depends on the amount of taxable income generated in future periods. We provide a valuation allowance for our deferred tax assets, which include our NOLs, when it is more likely than not that some portion, or all of our deferred tax assets, will not be realized. We consider all available positive and negative evidence and make certain assumptions in evaluating the realizability of our deferred tax assets. Many factors are considered that impact our assessment of future profitability, including conditions which are beyond our control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. We presently have a $34 million valuation allowance on certain net deferred tax assets related to state NOL carryforwards. There can be no assurance that an additional valuation allowance on our net deferred tax assets will not be required. Such valuation allowance could be material.
Our ability to deduct our NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has occurred. Substantially all of our remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, our ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. Our ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit our future use of NOLs and tax credits.
In 2021, we recorded an income tax benefit of $555 million, with an effective rate of approximately 22%, which was substantially non-cash. Substantially all of our loss before income taxes is attributable to the United States.
We file our tax returns as prescribed by the tax laws of the jurisdictions in which we operate. Our 2018 through 2020 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and we are under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. We believe that the effect of any assessments will not be material to our consolidated financial statements.
The amount of, and changes to, our uncertain tax positions were not material in any of the years presented. We accrue interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.
American Airlines, Inc.  
Income Taxes [Line Items]  
Income Taxes Income Taxes
The significant components of the income tax provision (benefit) were (in millions):
 Year Ended December 31,
 202120202019
Current income tax provision:
State and Local$— $— $2 
Foreign— — 8 
Current income tax provision— — 10 
Deferred income tax provision (benefit):
Federal(453)(2,224)567 
State and Local(47)(229)56 
Deferred income tax provision (benefit)(500)(2,453)623 
Total income tax provision (benefit)$(500)$(2,453)$633 
The income tax provision (benefit) differed from amounts computed at the statutory federal income tax rate as follows (in millions):
 Year Ended December 31,
 202120202019
Statutory income tax provision (benefit)$(478)$(2,290)$547 
State income tax provision (benefit), net of federal tax effect(37)(181)41 
Book expenses not deductible for tax purposes21 20 29 
Foreign income taxes, net of federal tax effect— — 8 
Change in valuation allowance— — 5 
Other, net(6)(2)3 
Income tax provision (benefit)$(500)$(2,453)$633 
The components of American’s deferred tax assets and liabilities were (in millions):
 December 31,
 20212020
Deferred tax assets:
Operating loss and other carryforwards$4,476 $3,944 
Loyalty program liability1,903 1,977 
Leases1,822 1,904 
Pensions934 1,397 
Postretirement benefits other than pensions215 203 
Rent expense92 96 
Reorganization items24 28 
Other710 796 
Total deferred tax assets10,176 10,345 
Valuation allowance(24)(24)
Net deferred tax assets10,152 10,321 
Deferred tax liabilities:
Accelerated depreciation and amortization(4,715)(4,992)
Leases(1,758)(1,809)
Other(279)(294)
Total deferred tax liabilities(6,752)(7,095)
Net deferred tax asset$3,400 $3,226 
At December 31, 2021, American had approximately $17.1 billion of gross federal net operating losses (NOLs) and $2.4 billion of other carryforwards available to reduce future federal taxable income, of which $7.3 billion will expire beginning in 2024 if unused and $12.2 billion can be carried forward indefinitely. American is a member of AAG’s consolidated federal and certain state income tax returns. American also had approximately $6.0 billion of NOL carryforwards to reduce future state taxable income at December 31, 2021, which will expire in taxable years 2021 through 2041 if unused.
American’s ability to use its NOLs and other carryforwards depends on the amount of taxable income generated in future periods. American provides a valuation allowance for its deferred tax assets, which include the NOLs, when it is more likely than not that some portion, or all of its deferred tax assets, will not be realized. American considers all available positive and negative evidence and makes certain assumptions in evaluating the realizability of its deferred tax assets. Many factors are considered that impact American’s assessment of future profitability, including conditions which are beyond its control, such as the health of the economy, the availability and price volatility of aircraft fuel and travel demand. American presently has a $24 million valuation allowance on certain net deferred tax assets related to state NOL carryforwards. There can be no assurance that an additional valuation allowance on American’s net deferred tax assets will not be required. Such valuation allowance could be material.
American’s ability to deduct its NOL carryforwards and to utilize certain other available tax attributes can be substantially constrained under the general annual limitation rules of Section 382 where an “ownership change” has occurred. Substantially all of American’s remaining federal NOL carryforwards attributable to US Airways Group are subject to limitation under Section 382; however, American’s ability to utilize such NOL carryforwards is not anticipated to be effectively constrained as a result of such limitation. Similar limitations may apply for state income tax purposes. American’s ability to utilize any new NOL carryforwards arising after the ownership changes is not affected by the annual limitation rules imposed by Section 382 unless another ownership change occurs. Under the Section 382 limitation, cumulative stock ownership changes among material stockholders exceeding 50% during a rolling three-year period can potentially limit American’s future use of NOLs and tax credits.
In 2021, American recorded an income tax benefit of $500 million, with an effective rate of approximately 22%, which was substantially non-cash. Substantially all of American’s loss before income taxes is attributable to the United States.
American files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. American’s 2018 through 2020 tax years are still subject to examination by the Internal Revenue Service. Various state and foreign jurisdiction tax years remain open to examination and American is under examination, in administrative appeals, or engaged in tax litigation in certain jurisdictions. American believes that the effect of any assessments will not be material to its consolidated financial statements.
The amount of, and changes to, American’s uncertain tax positions were not material in any of the years presented. American accrues interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively.