Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of components of provision (benefit) for income taxes

The provision for income taxes includes the following components (in thousands):

	Year ended December 31,
	2020		2019		2018
Current tax provision (benefit):
Federal	$	(4,397)	$	(4,395)	$	(21,598)
State		(875)		891		1,465
Foreign		—		—		1,575
		(5,272)		(3,504)		(18,558)
Deferred tax provision (benefit):
Federal		6,659		95,655		92,250
State		(199)		14,055		12,250
		6,460		109,710		104,500
Provision (benefit) for income taxes	$	1,188	$	106,206	$	85,942

Schedule of income tax rate reconciliation

	Year ended December 31,
	2020		2019		2018
Current tax provision (benefit):
Federal	$	(4,397)	$	(4,395)	$	(21,598)
State		(875)		891		1,465
Foreign		—		—		1,575
		(5,272)		(3,504)		(18,558)
Deferred tax provision (benefit):
Federal		6,659		95,655		92,250
State		(199)		14,055		12,250
		6,460		109,710		104,500
Provision (benefit) for income taxes	$	1,188	$	106,206	$	85,942

Schedule of components of the net deferred tax assets and liabilities

The significant components of the Company’s net deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows (in thousands):

	As of December 31,
	2020		2019
Deferred tax assets:
Accrued benefits	$	19,668	$	20,848
Net operating loss carryforward		229,815		358,685
AMT credit carryforward		—		4,397
Aircraft credits		12,765		9,114
Deferred revenue		27,076		—
Accrued reserves and other		34,816		17,225
Total deferred tax assets		324,140		410,269
Valuation allowance		—		(892)
Deferred tax liabilities:
Accelerated depreciation		(950,071)		(1,032,957)
Total deferred tax liabilities		(950,071)		(1,032,957)
Net deferred tax liability	$	(625,931)	$	(623,580)

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ended December 31, 2020, 2019 and 2018 is as follows (in thousands):

	Year ended December 31,
	2020		2019		2018
Unrecognized tax benefits at the beginning of year	$	14,620	$	14,553	$	2,223
Gross increases - current year tax positions		—		—		13,899
Gross increases - prior year tax positions		360		67		—
Gross decreases - prior year tax positions		—		—		(1,569)
Unrecognized tax benefits at end of year	$	14,980	$	14,620	$	14,553
Interest and penalties in year-end balance	$	427	$	67	$	—