Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2016		2015			2014
Current income tax provision (benefit):
Federal	$	—	$	—		$	(25	)
State and Local		12		20			9
Current income tax provision (benefit)		12		20			(16	)
Deferred income tax provision (benefit):
Federal		1,508		(2,884	)		345
State and Local		103		(130	)		1
Deferred income tax provision (benefit)		1,611		(3,014	)		346
Total income tax provision (benefit)	$	1,623	$	(2,994	)	$	330

Computation of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2016		2015			2014
Statutory income tax provision	$	1,505	$	1,616		$	1,123
State income tax provision, net of federal tax effect		63		72			75
Book expenses (benefits) not deductible for tax purposes		34		57			(1	)
Bankruptcy administration expenses		1		3			95
Alternative minimum tax (AMT) credit refund		—		—			(24	)
Change in valuation allowance		7		(4,742	)		(1,323	)
Income tax provision resulting from OCI allocation		—		—			330
Other, net		13		—			55
Income tax provision (benefit)	$	1,623	$	(2,994	)	$	330

Deferred Tax Assets and Liabilities

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

	December 31,
	2016			2015
Deferred tax assets:
Operating loss carryforwards	$	3,853		$	2,558
Pensions		2,610			2,436
Loyalty program liability		485			590
Alternative minimum tax credit carryforwards		344			346
Postretirement benefits other than pensions		291			340
Rent expense		256			134
Gains from lease transactions		213			262
Reorganization items		53			57
Other		972			1,200
Total deferred tax assets		9,077			7,923
Valuation allowance		(29	)		(22	)
Net deferred tax assets		9,048			7,901
Deferred tax liabilities:
Accelerated depreciation and amortization		(7,216	)		(5,158	)
Other		(345	)		(266	)
Total deferred tax liabilities		(7,561	)		(5,424	)
Net deferred tax asset	$	1,487		$	2,477

American Airlines, Inc. [Member]

Components of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2016		2015			2014
Current income tax provision (benefit):
Federal	$	—	$	—		$	(30	)
State and Local		10		15			6
Current income tax provision (benefit)		10		15			(24	)
Deferred income tax provision (benefit):
Federal		1,559		(3,407	)		342
State and Local		93		(60	)		2
Deferred income tax provision (benefit)		1,652		(3,467	)		344
Total income tax provision (benefit)	$	1,662	$	(3,452	)	$	320

Computation of Income Tax Provision (Benefit)

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

	Year Ended December 31,
	2016			2015			2014
Statutory income tax provision	$	1,555		$	1,635		$	1,144
State income tax provision, net of federal tax effect		67			71			81
Book expenses not deductible for tax purposes		32			55			4
Bankruptcy administration expenses		1			3			86
Alternative minimum tax (AMT) credit refund		—			—			(29	)
Change in valuation allowance		(1	)		(5,216	)		(1,285	)
Income tax provision resulting from OCI allocation		—			—			328
Other, net		8			—			(9	)
Income tax provision (benefit)	$	1,662		$	(3,452	)	$	320

Deferred Tax Assets and Liabilities

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

	December 31,
	2016			2015
Deferred tax assets:
Operating loss carryforwards	$	4,087		$	2,818
Pensions		2,595			2,420
Loyalty program liability		485			590
Alternative minimum tax credit carryforwards		456			458
Postretirement benefits other than pensions		291			340
Rent expense		256			134
Gains from lease transactions		213			261
Reorganization items		53			57
Other		911			1,123
Total deferred tax assets		9,347			8,201
Valuation allowance		(13	)		(14	)
Net deferred tax assets		9,334			8,187
Deferred tax liabilities:
Accelerated depreciation and amortization		(7,101	)		(5,011	)
Other		(335	)		(244	)
Total deferred tax liabilities		(7,436	)		(5,255	)
Net deferred tax asset	$	1,898		$	2,932